Ukraine profile

Demography and Health

Ukraine’s population stands at about 37.86 million in 2024, indicating a sizable post-Soviet country with substantial human capital. The demographic mix is influenced by a relatively low birth rate of 5.62 births per 1,000 people (2023) and a crude death rate of 13.1 per 1,000 people (2023), contributing to an aging profile and rising dependency pressures even before the most recent conflicts. Life expectancy at birth is 73.4 years (2023), and the mortality rate for children under five is 8.1 per 1,000 live births (2023), signaling ongoing health challenges that are shaped by both structural health financing and the shocks from conflict. The population dynamics are further complicated by migration: net migration in 2024 stands at 1,146,012 people, a substantial inflow that reflects displacement, refuge flows, and migratory movements that can temporarily offset population decline while placing demands on housing, social services, and integration systems. The large-scale migration also hints at a split between urban–labor demand and rural or conflict-affected areas that require targeted health and social support. Health financing and outcomes show a mixed picture. Current health expenditure accounts for 8.2% of GDP in 2021, with domestic general government health expenditure per capita (PPP) around 571 international dollars in 2021, indicating a relatively mature public sector role in health but with potential fiscal pressures and service delivery gaps in the face of fiscal strain or conflict-related needs. The suicide mortality rate is 21.2 per 100,000 people (2021), a public health signal that warrants attention to mental health, social cohesion, and accessible care in a context of ongoing stressors. Across digital dimensions, Ukraine is well connected—82.4% of the population uses the Internet in 2023—an asset for telemedicine, health information systems, and remote health services that could help mitigate access limitations in underserved or unstable regions. Food security appears manageable, with a prevalence of undernourishment at 5.8% (2022), though vulnerabilities remain in areas disrupted by conflict or poverty. Taken together, Ukraine’s demography and health profile reflects a country with robust human capital potential and significant public health needs, amplified by security challenges and migration dynamics that shape both health service delivery and social protection requirements.

Economy

Ukraine’s economy presents a paradox of sizable potential and pronounced fragility. GDP per capita in 2024 is $5,389 (current US$), with GDP per capita at PPP around $18,550, signaling that while market prices are modest on a nominal basis, purchasing power in Ukraine is higher when considering local price levels. Inflation runs at 6.5% in 2024, signaling ongoing price pressures that can erode real incomes and complicate monetary policy, especially in a context of external shocks and security expenditures. The external sector shows a substantial openness: exports of goods and services amount to 29.4% of GDP in 2024, while imports reach 48.3% of GDP, illustrating broad integration with global supply chains but also a sizable reliance on foreign goods and inputs. The current account balance is negative at −7.21% of GDP in 2024, reflecting a persistent external financing requirement and exposure to global demand and capital flow volatility. Foreign direct investment (FDI), net inflows, register at 1.99% of GDP in 2024, indicating cautious but ongoing investor interest despite security and macroeconomic risks. The economy demonstrates some high-value activities: high-technology exports total about $729 million in 2023, and residents filed 1,302 patent applications in 2021, pointing to an innovation base with potential for scaling if stability and policy support align, though R&D intensity remains low at 0.327% of GDP in 2023. The defense burden is conspicuous: military expenditure in 2023 was about $64.8 billion, ranking 8th globally, underscoring the heavy fiscal commitment to security amid conflict and the consequent crowding out of some civil and social investments. Unemployment stood at 9.83% in 2021, offering a window into labor market frictions that may have worsened in later years due to disruption but still signals a functioning job market in peacetime measures. Ukraine’s energy and climate profile remains nuanced: renewable energy accounts for 8.9% of total final energy consumption (2021), and per-capita greenhouse gas emissions exclude LULUCF at 5.73 t CO2e (2023), indicating a moderate carbon footprint with significant room for transformation through policy and investment. Overall, Ukraine’s economy is deeply embedded in global trade, heavily influenced by security considerations, and positioned for a potential rebound if stability, investment climate improvements, and productive reforms advance.

Trade and Investment

Trade and investment dynamics in Ukraine are characterized by a high degree of openness coupled with exposure to external shocks and security risks. Exports of goods and services amount to 29.4% of GDP (2024), while imports constitute 48.3% of GDP (2024), signaling a trade regime that is highly integrated in regional and global supply chains and reliant on both inputs and markets across borders. The negative current account balance of −7.21% of GDP in 2024 points to a persistent external financing need, stressing balance-of-payments management and the importance of foreign inflows, remittances, and donor support for macroeconomic stability. Foreign direct investment net inflows stand at 1.99% of GDP (2024), indicating that investors remain cautiously present in Ukraine, attracted by a sizeable internal market potential, skilled labor, and strategic geographic position, yet deterred by geopolitical risk and regulatory uncertainty. Ukraine’s logistics capacity is mixed: the Logistics Performance Index registers 2.4 on a 1–5 scale in 2022, with a rank of 22, suggesting decent, but improvable, trade and transport infrastructure quality that can affect costs and competitiveness. In the technology space, high-technology exports reach about $729 million (2023), and residents filed 1,302 patent applications (2021), signaling a foundation for future export growth in knowledge-intensive sectors. The broader investment climate is shaped by governance indicators (discussed in the Governance section) that reflect regulatory and institutional fragility, yet the country’s digital connectivity (82.4% internet penetration in 2023) provides a platform for e-commerce, digital services, and innovative business models that can bolster trade and investment as stability improves. Ukraine’s external profile thus sits at a crossroads: a strategically important economy with substantial export capacity and talent, but with elevated risk and a need for policy credibility, macro stability, and security assurances to mobilize larger, long-term investments in infrastructure, industry, and innovation.

Governance and Institutions

Ukraine’s governance and institutional landscape reveals meaningful vulnerabilities alongside resilience in many areas. The Political Stability and Absence of Violence/Terrorism indicator for 2023 is −1.43 with a rank of 176, underscoring persistent political and security challenges that limit policy predictability and investor confidence. Regulatory Quality sits at −0.266 (2023) and the Rule of Law at −0.888, signaling structural weaknesses in the legal and regulatory framework that can hinder contract enforcement, judicial efficiency, and the ease of doing business. Control of Corruption is −0.686 and Government Effectiveness is −0.357, both reflecting governance shortfalls that can translate into inefficiencies, graft risks, and uneven public service delivery, particularly in times of conflict or rebuilding. Contextualizing these figures, Ukraine maintains robust human capital and active engagement in research and innovation: R&D expenditure is 0.327% of GDP in 2023, and residents filed 1,302 patent applications in 2021, demonstrating a capacity to innovate that could be harnessed in post-conflict reconstruction and growth. The scale of military expenditure (8th globally in 2023) further shapes public finance and policy choices, influencing how much is available for social and economic reforms. The sizable net migration inflow of 1,146,012 in 2024 reflects a dynamic population movement with implications for governance, service delivery, and regional planning as the country manages displacement, integration, and potential return flows. Taken together, governance and institutions in Ukraine reflect a country with meaningful administrative capacities and a robust knowledge base, but facing structural weaknesses in corruption, rule of law, regulatory quality, and political stability that are intensified by ongoing security challenges. Rebuilding institutions with transparent, predictable rule-making and credible anti-corruption reforms will be essential to restore investor confidence, improve public services, and advance sustainable growth.

Infrastructure and Technology

Ukraine’s infrastructure and technology landscape features strong digital foundations alongside notable physical infrastructure constraints. The internet is widely accessible, with 82.4% of the population online in 2023, creating fertile ground for digital government, e-services, and online education, as well as the growth of e-commerce and telemedicine. The country's logistics readiness shows a mixed picture: the Logistics Performance Index scores 2.4 on a 1–5 scale (2022), with a rank of 22, indicating that while transport and logistics capabilities exist, significant improvements are needed to reduce costs and time in trade-related activities, especially for cross-border procurement and supply chains. Innovation activity exists but remains modest by global standards: high-technology exports total about $729 million in 2023, and patent applications (resident) were 1,302 in 2021, while R&D expenditure is 0.327% of GDP (2023). This combination suggests a capability for knowledge-based growth but a financing and policy environment that could be more conducive to scaling research commercialization, venture capital, and collaboration with international partners. The technology and infrastructure landscape is further shaped by the energy mix, with renewable energy accounting for 8.9% of total final energy consumption in 2021 and per-capita greenhouse gas emissions of 5.73 t CO2e (2023), indicating both a relatively clean starting point and substantial potential for energy transition. The Internet-enabled economy, coupled with a modest but growing tech sector and ongoing needs to upgrade transport and border infrastructure, positions Ukraine to leverage digital transformation and modernization as stability returns, while continuing to address regulatory and governance barriers that can affect project implementation and private investment.

Environment and Sustainability

Ukraine’s environmental profile reveals a balance between moderate pressures and opportunities for green growth. Total greenhouse gas emissions excluding LULUCF per capita are 5.73 t CO2e, ranking 73rd, indicating a relatively modest per-person emissions footprint by international comparisons, but the aggregate impact remains sizable given population scale and energy intensity. Renewable energy accounts for 8.9% of total final energy consumption in 2021, signaling room for a meaningful transition toward cleaner energy sources through investment in wind, solar, and other renewables, as well as modernization of the grid. Water stress, measured as freshwater withdrawal as a portion of available resources, is 12.3% in 2021, suggesting only moderate competition for water resources but highlighting the need for efficient water management and infrastructure in agriculture, industry, and urban use. The prevalence of undernourishment at 5.8% in 2022 points to relatively solid food security, yet vulnerabilities persist in conflict-affected regions and rural areas that require resilient food systems and targeted social protection. Ukraine’s environmental trajectory is closely linked to its broader development agenda: capitalizing on digitalization and private investment to fund energy diversification, emissions reduction, and climate-resilient infrastructure while aligning environmental policy with security and reconstruction priorities will be crucial for sustainable, inclusive growth in the coming years.