Kiev - Economy

Economy

See also: Category:Economy of Kiev, Economy of Ukraine

As with most capital cities, Kiev is a major administrative, cultural and scientific centre of the country. It is the largest city in Ukraine in terms of both population and area and enjoys the highest levels of business activity. As of 1 January 2010 (2010 -01-01), there were around 238,000 business entities registered in Kiev.

Official figures show that between 2004 and 2008 Kiev's economy outstripped the rest of the country's, growing by an annual average of 11.5%. Following the global financial crisis that began in 2007, Kiev's economy suffered a severe setback in 2009 with gross regional product contracting by 13.5% in real terms. Although record high, the decline in activity was 1.6 percentage points smaller than that for the country as a whole. The economy in Kiev, as in the rest of Ukraine, recovered somewhat in 2010 and 2011. Kiev is a middle-income city, with prices currently comparable to many mid-size American cities (i.e., considerably lower than Western Europe); and despite the poverty of the rest of the country, and large tracts of Soviet apartment blocks, has a notable lack of slums.

Because the city boasts large and diverse economic base and is not dependent on any single industry and/or company, its unemployment rate has historically been relatively low – only 3.75% over 2005–2008. Indeed, even as the rate of joblessness jumped to 7.1% in 2009, it remained far below the national average of 9.6%.

Kiev is the undisputed center of business and commerce of Ukraine and home to the country's largest companies, such as Naftogaz Ukrainy, Energorynok and Kyivstar. In 2010 the city accounted for 18% of national retail sales and 24% of all construction activity. Indeed, real estate is one of the major forces in Kiev's economy. Average prices of apartments are the highest in the country and among the highest in eastern Europe. Kiev also ranks high in terms of commercial real estate for it is here where the country's tallest office buildings (such as Gulliver and Parus) and some of Ukraine's biggest shopping malls (such as Dream Town and Sky Mall) are located.

In May 2011 Kiev authorities presented a 15-year development strategy which calls for attracting as much as EUR82 billion of foreign investment by 2025 to modernize the city’s transport and utilities infrastructure and make it more attractive for tourists.