2.5.9. MACHINE BUILDING

In 2000, Ukraine saw some recovery in machine building industry. For the first time after continuous recession, in 2000 increase in machinery and metalworking industry indicated 16.8% (in 1999, there was a 0.8% decrease).

Further, Ukrainian foreign economic activity in 2000 is presented as the dynamics of machinery export/import (the largest branches are presented). Automotive, aircraft, and shipbuilding, as well as production of other transport means was not considered.

Export

In 2000, the total export turnover increased by 39% as against 1999 to over USD 1.33 bln. While at the beginning of the year export of Ukrainian machine-building enterprises was at the level of 1999, starting from the beginning of the second half-year, there was some increase, which allowed achieving rather high end indicators. Monthly export dynamics in 1999-2000 is presented at figure 1.

Figure 1. Export dynamics of machine-building industry in 1999-2000, USD

By-region distribution of machinery export virtually did not change. Like in 1999, in 2000, Russia remained the biggest trade partner of Russia. Its portion in export supplies of Ukrainian products made 46%. Besides to Russia, the main partners of Ukrainian exporters were the enterprises of Belarus, Turkmenistan, Kazakhstan, and Uzbekistan (among CIS countries), Hungary, Slovakia, Poland, and CR (among Eastern European countries), Turkey (among the countries of Black Sea basin), Germany, Austria, and Italy (among Western European countries), India, China – in Asia. One could see aim of Ukrainian export to launch markets of developed countries and strengthen foothold in the third countries, though export to ex-USSR countries will long remain the major direction in Ukrainian machinery trade.

Import

In 2000, import turnover was virtually the same as in 1999 at some USD 1.88 bln. While at the beginning of the year import of Ukrainian machinery was at the level of 1999, in the second half-year it slightly lowered. Рincrease in production and export of domestically-made products against the background of import stabilization witnesses positive trends in the Ukrainian economy. Monthly import dynamics in 1999-2000 is presented at figure 2.

Figure 2. Import dynamics of machine-building industry in 1999-2000, USD

Russia holds the leadership in Ukrainian import. In 2000, its positions did strengthen (a 31% of the total supplies). Germany, Austria, Italy, Sweden, and USA were the biggest foreign trade partners.