Ukraine's Economic Security Index drops from 35.2 to 33.4 points in 2025 — study
Ukraine's Economic Security Index fell from 35.2 to 33.4 out of a possible 100 points in 2025 due to worsening social, regulatory, intangible and institutional factors, according to the results of an annual study released by the International Liberty Institute (ILI) at a press conference at the Interfax-Ukraine news agency in Kyiv on Wednesday.
"The system of Ukraine's national economic security is in the dangerous, 'orange' zone and has deteriorated over the past year. The main threat to economic security is the scope, size and discretion of the state," the study's authors concluded.
They noted that the ILI methodology calculates the Index based on an analysis of 59 indicators grouped into eight categories and can be applied to any country with a transition economy.
As part of the study, the index was also calculated for nine other countries: Finland, Germany, Israel and the United States performed in the "green" zone with scores ranging from 79.5 to 70.6; the Czech Republic, Poland and Romania with scores from 69.8 to 54.4 were in the "yellow" zone, while Türkiye and Argentina fell into the same "orange" group as Ukraine but with much higher scores – 49.8 and 41.9, respectively.
The biggest deterioration this year was recorded in the following categories: social factors down from 57.3 to 42 points; regulatory from 43.5 to 35 points; intangible from 54 to 48 points; and legal and institutional from 53.5 to 48 points.
At the same time, three categories posted improvements: infrastructure, up from 22.1 to 33 points; monetary and financial from 16.5 to 26 points; and macroeconomic from 19.9 to 21 points. Tax and fiscal factors remained at the lowest level – 14 points.
"Ukraine is losing even regional competition for advanced technologies and profitable niches in global value chains. Without changes in state-business relations, the erosion of Ukraine's comparative advantages after victory in the war will accelerate," the International Liberty Institute warned. Among its founders are Nova Poshta co-owner Volodymyr Poperechniuk, MTI distribution company co-founder Serhiy Bashlakov, and Aricol Group co-founder Yevhen Lemberg.
The study's authors recommend that the government conduct a comprehensive review of legislation "considering scientific conclusions and empirical observations," reduce the functions and size of the state and the format and regime of its presence in the economy, and abandon the practice of identifying "growth points" and strategic sectors.
They call on the government to pursue deregulation, privatization, a new fiscal and monetary policy, and an annual audit of the state with clear deadlines for improving economic policy parameters.
The International Liberty Institute describes itself as an independent, nonprofit, nonpartisan think tank focused on promoting, developing and strengthening the ideas and values of freedom through expert analysis and practical solutions for the economy and policymaking. The ILI is headed by President Yaroslav Romanchuk and Director Mykhailo Kamchatnyi.
