According to the National Bank of Ukraine, direct foreign investments (FDI) decreased by 14% year-on-year over 11 months of 2024, amounting to nearly $4 billion.
This was reported by Member of Parliament Danylo Hetmantsev on his Telegram channel.
In his opinion, the majority of FDI consists of reinvested profits, which has a more neutral impact on the current account, as it is accounted for in corresponding balance of payments income items. Under such conditions, the decline in direct foreign investments and the low share of new (greenfield) investments is undoubtedly a negative trend.
“Over 11 months of 2024, the FDI inflow into Ukraine amounted to $3.98 billion, with a net inflow (after deducting FDI outside of Ukraine) of $3.64 billion. This is 14% (19% in terms of net FDI) lower than the same period last year. Since the majority of FDI (75% in 2023, 64% in 11 months of 2024) consists of reinvested profits, the decline is partially due to the relaxation of restrictions on the repatriation of ‘new’ dividends (accrued from January 1, 2024) introduced by the NBU in May this year,” noted Danylo Hetmantsev.
