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Kiev is a large Eastern European city of 3.7 million people in 2016, with an economic potential that still needs to be realised. Compared to its peer metropolises in the wider region, Kiev's GDP per capita is among the lowest. However, the city's educated and ingenious residents explore ways to unlock positive changes and at present are assertively building up Kiev's reputation as a promising IT hub.
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Kiev boasts a better educated population than other Ukrainian regions, and accounts for 29% of high value-added jobs in business services in Ukraine. As a result, in 2016, the city recorded labour productivity (measured as GVA per employee) that was more than three times higher than in the rest of Ukraine.
Higher labour productivity is a key factor augmenting the household income level in Kiev compared to the rest of Ukraine. Despite a smaller average household size, per household disposable income in the capital was still over double that of the figure in the remaining country.
In comparison to the rest of Ukraine, higher incomes enable households in Kiev to spend on average twice as much on consumer goods and services (other than transport and housing). However, necessities, ie food and non-alcoholic beverages, continue to capture a sizeable proportion in Kievans' household budgets.
Living in Kiev comes with a high price tag in the national context. In 2016, household expenditure on transport and housing in Kiev was three times larger than in the rest of the country. Transport contributes to this differential to a significant extent. Although Kiev's motorisation rate is relatively low by Eastern European standards, it is notably higher compared to the rest of Ukraine (299 versus 160 cars per 1,000 population, respectively, in 2016).
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