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The Index of Economic Freedom is built upon analysis of 10 specific components of economic freedom, some of which are themselves composites of additional quantifiable measures. The 10 component scores are equally weighted and averaged to get an overall economic freedom score for each country.
Ukraine's economic freedom score is 48.8, making its economy the 152nd freest in the 2009 Index. Its score is 2.2 points lower than last year, reflecting deteriorating economic freedom in seven areas. Ukraine is ranked 42nd out of 43 countries in the Europe region, and its overall score is lower than the world average.
As an important exporter of minerals and grain, Ukraine has managed impressive levels of economic growth averaging about 7 percent over the past five years. Sustaining those levels in a time of global economic slowdown will require significant structural reform. In one such positive step, Ukraine became a member of the World Trade Organization in May 2008, completing a 14-year accession process.
In comparison to other countries that have been moving toward a more market-oriented economy, Ukraine lags behind in price liberalization and the efficiency of its business environment. The regulatory framework remains burdensome. While foreign investment is officially welcome, corruption and bureaucracy deter many investors. The judiciary does not always enforce contracts fairly and is tarnished with corruption, which also plagues the civil service. Bureaucratic inefficiency makes many commercial operations difficult.
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