FDI in Ukraine's economy grows by USD 2.7B in H1 2021 – Danylyshyn

Foreign direct investment (FDI) in Ukraine's economy due to the participation of a direct investor in capital increased over six months by USD 2.7 billion, of which USD 2.3 billion was reinvested earnings.

According to Ukrinform, Chairman of the Council of the National Bank of Ukraine Bohdan Danylyshyn wrote this on his Facebook page.

"The inflow of foreign direct investment is mainly determined by reinvested earnings of foreign investors. Thus, foreign direct investment in Ukrainian economy due to the participation of a direct investor in capital increased over six months by USD 2.7 billion, of which USD 2.3 billion was reinvested earnings of the direct investor," the report reads.

At the same time, excluding reinvested earnings, the direct investor's investment in the capital of a direct investment enterprise (USD 430 million) was insufficient even to compensate for the outflow of funds of direct investors from direct investment enterprises through debt instruments (USD -460 million).

Reinvested earnings are the direct investors' share of earnings from direct investments that are not distributed to owners. These earnings (or losses as the case may be) are recorded in the current account of the balance of payments under international investment income.

As Ukrinform reported, the Ministry of Economy expects Ukraine to attract USD 5 billion in investment in 2021.

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