STATE AND PROSPECTS OF ECONOMIC DEVELOPMENT OF UKRAINE

Abstract

The economic development of a state is a complex process that encompasses a set of quantitative and qualitative changes in production, the structure of the economy, the level of welfare of the population, and the efficiency of resource use. It reflects not only the current state of the economy, but also the country's ability to self-develop and innovate. The state of the Ukrainian economy is shaped by internal and external factors. Internal factors include the level of development of production potential, the efficiency of public administration, investment activity, the innovative capacity of enterprises, and the stability of the financial system. External factors include participation in international economic relations, integration processes, the influence of world markets, and the political situation in the world. Despite the difficult circumstances, the Ukrainian economy demonstrates significant resilience and potential for recovery. The main ways to increase Ukraine's GDP are to stimulate investment activity, increase labor productivity, develop the real sector of the economy, expand export potential, effective state economic policy, innovative development and digitalization, and social factors of growth. Inflation is an integral element of a market economy. According to forecasts, a certain decrease in the inflation rate is expected in Ukraine, which indicates a gradual restoration of price stability in European economies. This can be achieved through monetary, fiscal and financial policies; structural reforms; exchange rate regulation and international support. The investment climate in Ukraine is determined by both significant risks due to the war, imperfect legislation, and certain opportunities, in particular in the agricultural sector and thanks to new EU programs. Investments will contribute to economic growth, job creation, and modernization of key sectors of the economy. This requires economic and political stability, modernization of the transport and energy systems, and access to qualified labor and technologies. To ensure sustainable economic development, it is necessary to implement systemic reforms in key areas – public administration, education, healthcare, pension provision, housing and communal services, etc. Another important factor is the development of a competitive logistics system, expansion of export opportunities, and deepening of Ukraine's integration into the global economy.