Xinhua: European debt crisis affecting Ukrainian economy

The Eurozone debt crisis that began in Greece in May 2010 has had a spillover effect on countries outside the monetary union, including Ukraine, reads Xinhua report. 

The Ukrainian economy can not avoid reeling if the eurozone debt crisis continues swelling, as it has been closely linked with the European and global markets.

The worsening crisis in the European Union, which absorbs 26 percent of Ukraine's exports, would surely affect the import of Ukrainian goods, a heavy blow especially to companies supplying the lion's share of products in mining, metallurgy and other heavy industries.

Foreign Direct Investment (FDI) from the EU, which used to account for 70 percent of all inflows to Ukraine, may also fall if the crisis spreads, as anxious investors try to save their liquidity to counter the next crisis wave, if there is any.

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