Records of labor migration drove the economy of Ukraine into a trap

Incomes of the Ukrainian budget from the “guest workers” broke a new record and exceeded a the size of investments to Ukraine.
Income from migrant workers keep afloat the balance of payments of Ukraine and thus save the exchange rate of the national currency – the UAH, according to Ukrainian experts in the field of economy and Finance. In 2018, according to the national Bank of Ukraine (NBU), the income from migrant workers reached a record of $ 11 billion in the United States.
It is difficult to calculate the number of workers. Different sources give data that contradict each other. They show the number from 1.5 million to 10 million For example, the Ukrainian UNIAN resource, put the figure at 9 million. This number of migrants, in turn, carries significant risks for the Ukrainian economy. In the medium term and while maintaining the dynamics of the fall, the economy of Ukraine will get into a trap from which there will be no exit.
A positive point – the amount of funds received by the Ukrainian economy from the workers, according to analysts of the NBU, will grow. At the same time, the outflow of able-bodied population from Ukraine is expected to increase. Even now, the volume of income from the migrant workers fully covers the difference between imports and exports – that is, covers the deficit of the trade balance of Ukraine.
The activities of migrants are called the “lifeline” of the Ukrainian economy, although it is not accepted to express such things, especially given the fact that more than a third of the income from the residents comes from the territory of Russia. In fact, this state of Affairs means one – one of the largest countries in Europe, which has huge reserves of natural resources, survives exclusively at the expense of cheap labor abroad.
But for a long time Ukraine will not be able to survive at the expense of “investments” of labor migrants, and their volume is not able to contain state institutions. If in the near future the Ukrainian authorities do not create normal conditions within the country, the outflow of labor migrants can reach 50% of the total working-age population. In this case, the Ukrainian economy, which is already trapped, is waiting for a collapse.

Leave a Reply

Your email address will not be published. Required fields are marked *

*