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УДК: 330.101.541(075.8)

DOI: https://doi.org/10.36887/2415-8453-2022-2-5

Konstantin Zavgorodniy
PhD in Economics, State Enterprise
“Production Association Southern Machine-Building Plant named after A.M. Makarov”

JEL classification: F01; F63

Introduction. Global economic instability is characterized by a state when the world economy is experiencing a turbulent period, oscillating between periods of growth and recession. Such fluctuations occur for many reasons, including political instability, conflicts, changes in currency rates, falling commodity prices, changes in consumer demand, etc. In addition, global economic instability can severely affect countries and regions dependent on external economic factors. For example, a decline in foreign investment can lead to a fall in domestic demand, lower wages, higher unemployment, and social tensions. Also, the competitiveness of the national economy on the world market may decrease, which may lead to a decrease in exports and an increase in imports of goods.

The purpose of the article is the process of analyzing the development of Ukraine’s economy under conditions of global instability.

Results. It has been proven that the conditions of globalization change the structure and components of the economy of Ukraine. It was determined that globalization leads to an increase in exports but also to increased pressure on the domestic market and a decrease in the competitiveness of domestic enterprises. On the other hand, integration processes in the world require Ukraine to participate actively in international cooperation and ensure proper competitiveness in world markets. Any changes in competitive conditions in the domestic market cause changes in the economy’s structure.

Conclusions. The analysis showed that in 2020-2021 there was an increase in the share of gross added value in the industry (by 3.1%) and a decrease in the share in other sectors of the economy, in particular in agriculture (by 1.6%) and transport (by 0.8%). Trade remains a stable sector, the share of which decreased by 0.2% over the year. Other sectors of the economy have the largest share of gross added value (37.7%), but it decreased by 3.6% over the year. It has been proven that when assessing inclusive development, it is necessary to consider GDP growth and its distribution among the population and various sectors of the economy. It was determined that it is essential to provide stable jobs, raise the population’s standard of living, and reduce socio-economic inequalities between regions and the upper and lower layers of the population. They are reasoned to ensure economic development in line with global challenges such as climate change, sustainable development, and innovation.

Keywords: economic development, global instability, globalization, integration.

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The article was received 07.04.2022