Equity capital of companies and organizations remains the main source of capital investment funding

In 2019, capital investment in Ukraine increased by 15.5% to ₴584.4 billion. Its growth was 16.4% in 2018, and 22.1% in 2017. Capital investment in dollar terms has almost doubled since 2015, reaching $22.6 billion.

The largest growth in capital investment in 2019 was reported in Volyn (74.2%), Kherson (66.1%), Mykolaiv (40.1%), Poltava (39.7%) and Kyiv (33.4%) oblasts. A decline was recorded in Khmelnytskyi (5.8%), Rivne (5.4%), Odesa (1.7%) and Chernihiv (1.6%) oblasts.

In the sectoral context, the largest increase in capital investment last year was reported in accommodation and catering — 48.7%, health care and social security 46.6%, industry 34.7%, professional, scientific and technical activities 31.4%.

The mining & metals sector is among the most capital-intensive industries. The share of mining & metals companies in the total capital investment in the country in 2018–2019 was 8.1% and 8.5% respectively, in industry 19% and 21.3%. In 2019, capital investment in the mining & metals sector grew by 37.3% to $1.914 billion against 2018.

Major capital investment in 2019 was channeled to machinery, fixtures and equipment (34%), engineering facilities (22.6%), non-residential buildings (15.4%), vehicles (10.8%) and residential construction (9.5%) .

Equity capital remains the main source of capital investment funding, with a 68.1% share in the use of the total investment volume. The share of the population’s funds in residential construction accounted for 5.6%. It is down from the last year’s indicators of 71.3% and 6.4% respectively.

The share of capital investment from the state and local budgets increased from 4% to 5% and from 8.7% to 9.6% respectively, bank loans from 6.7% to 7%, funds of foreign investors from 0.3% to 0.6%.

For more details on the capital investment trends see GMK Center’s infographics.