Ukraine this year came 81st among 137 economies rated in the World Economic Forum’s Global Competitiveness Index, an annual ranking that measures national competitiveness and determines countries’ levels of productivity.
Despite the Ukrainian government’s claims to be doing all it can to make Ukraine an easier and safer place to do business, and its economy more attractive to investors, Ukraine still lags behind most European Union countries, the United States, and even Russia, which despite being placed under Western sanctions came 38th in this year’s ranking.
Although Ukraine rose slightly in 2017 from its 85th place in 2016, the World Economic Forum says the country has still to solve many problems that stunt the growth of its international competitiveness.
Among 12 indicators of the global competitiveness of the country, Ukraine scores well in higher education and training (35th among 137), market size (47th), and health and primary education(53rd). But it does poorly in financial market development (120th), goods market efficiency (101st), performance of institutions (118th), business sophistication (90th), and technological readiness (81st).
Ukraine’s profile in the 2017-2018 Global Competitiveness Index shows that the country’s ranking over the last five years has fluctuated.
In 2012, Ukraine came 73rd among 144 economies reviewed, but next year, during which the EuroMaidan Revolution occurred, it suffered a sharp fall, dropping by 11 positions to 84th.
After the revolution, the country’s competitiveness went up again, with Ukraine being 76th among 144 countries in 2014. But it dropped back to 79th among 140 countries in 2015.
In 2016, Ukraine’s performance worsened again, and it dropped 85th among 138 economies.
Respondents to the World Economic Forum’s Executive Opinion Survey were asked to name the most problematic factors for doing business in their country.
According to the survey, the most problematic factors in Ukraine were inflation, corruption, policy instability, tax rates, government instability, access to finances, inefficient government bureaucracy, foreign currency regulation, inadequately educated workforce, and restrictive labor regulations.
