“Kyiv Oblast in Ukraine has the most cost-friendly labour cost levels of all European Regions analysed.” – source: fdi Benchmark, www.fdiintelligence.com
According to the recently released “fDi European Cities and Regions of the Future 2016/17 Rankings” report, Kyiv and several other Ukrainian cities took top spots in the Cost Effectiveness category.
The most compelling argument for cost efficiency for business in Ukraine right now is the exchange rate. For those coming into the country with dollar or euro based budgets, foreign currency goes a long way in Ukraine.
In 2015, the currency was under pressure and jumped from an average of about 11.5 UAH to the dollar in 2014 to almost 22 in 2015. For most of 2016, the rate hovered between 26 – 28 UAH to the USD. Trading Economics forecasts predict the UAH maintaining a 27 – 28 range through 2017.
Ukraine needs to increase the average salary level in the country; eventually this will occur with increased economic stimulus and growth.
Until this happens, the current level of average salary in Ukraine – $2,877.00 per year – which makes it a very cost competitive place to do business.
The average salary for Ukrainian programmers is higher than the national average – between $2,000 – $3,000 a month based on skills and experience. While higher than the national average, this still represents a savings of 80 – 90 % per highly skilled employee, compared to American or European IT engineers.
COST OF LIVING
This aspect can make a difference, since those who come to do business in Ukraine often also live in Ukraine.
Kyiv, the country’s capital, is the most expensive place to live in the country, but for most people coming from abroad, it is extremely reasonable in terms of cost of living.
In addition to the reasonable cost of living, the quality of life – particularly in the major cities of Kyiv, Lviv and Odessa – is a draw for many expats as well. Located in different regions of the country, the different cities each offer a unique feel and flair of their own, providing visitors and residents thriving, dynamic cultural and social scenes with quality of life that easily matches that of other European cities.