The task of the Ministry of Economy is to stimulate the development of the private sector and create conditions for greater financial independence of the state. To do this, we need to develop domestic production, attract investment to the real sector and increase non-resource exports. This was emphasised by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, in an interview with Forbes.
“If we take the standards of the Organisation for Economic Co-operation and Development (OECD), the share of the processing industry in GDP in developed countries is 20%. That is why we have set ourselves the task of increasing the share of processing in Ukraine’s GDP to this level. Given favourable external conditions and a consistent policy to promote the development of the processing industry, this can be achieved in 10 years. Processing should become part of the national economic idea,” said Yulia Sviridenko.
According to the First Deputy Prime Minister, changing the structure of the economy will ensure significant GDP growth and new jobs. It will also become an important component of economic European integration. The same transformation should take place in the export structure. Currently, the share of processing industry is about 35%. We need to aim for 70-80%.
“The paradox of the current situation is that these changes are being accelerated by the war. The blockade of agricultural exports has led to an increase in agro-processing. According to the Customs Service, in the first nine months of 2023, flour exports increased by 267% and pasta exports by 22%. We see farmers investing in new processing facilities, and we hear even more about plans to build new facilities in the near future. These include mills, bioethanol, deep agro-processing and food products,” Yuliia Svyrydenko stressed.
According to Yuliia Svyrydenko, the Government’s goal is to maintain duty-free trade with the EU. It is one of Ukraine’s biggest partners and it gives Ukrainian businesses more opportunities. This means access to a large, viable market and potentially to EU structural funds. The challenge is to find funding for modernisation, including the green transition, certification and compliance with European standards.
