IBI-Rating has determined the rating of investment attractiveness of Zhytomyr at invВВВ+ grade

The rating agency IBI-Rating informs on the assignment of the investment attractiveness rating to the city of Zhytomyr at invВВВ+ grade (sufficient investment attractiveness).

The determined grade of the rating of investment attractiveness of the city of Zhytomyr is due to its significance as a a regional center. The convenient geographical location, natural and climatic conditions, absence of substantial environmental concerns, as well as loyal environmental legislation, which provide additional opportunities for investors, are limited by the infrastructural constraints, in particular, by the deterioration of the engineering and transport networks, housing and communal economy facilities, etc. Currently a part of these facilities are under modernization and reconstruction, including involving the international financial institutions.

Actions aimed at increasing the level of administrative culture in the city and in terms of improving the investment climate, as well as the coordination of actions with the local authorities in addressing the key issues of the city life, create a certain potential for growth of economic performance indicators in several sectors of the economy. However, these opportunities are constrained by the lack of significant levers for providing benefits to investors and a lack of a strategy of building relations between the authorities and investors, as well as the likely changes in the local authorities after the elections and the unstable political situation in the country. Although Zhytomyr is inherent in the indicators of economic development, which are below the national average level, there is a significant potential for growth in a number of sectors of the city economy. The city is inherent in a good provision with the institutions of health care, education and culture, as well as with the whole key transport infrastructure.

Indicators of income of the population are below the average income level in the country. There is a reduction of the existing population, which has been occurring due to the labour migration.

A positive impact on the rating may have the following:the improved regulatory framework and the successful implementation of the basic programmes of the city development, the growth of most of the social and economic development indicators to the national level, the improved condition of the infrastructure. A negative impact on the rating may have the following: further deterioration of the infrastructure, the identified complaints from investors on the activities of the local authorities, deterioration of the city development indicators, the reduced volumes of investments. In order to perform the analytical research the following materials have been used: the data received from the city of Zhytomyr, including the indicators of social and economic development, the data of statistical bulletins; the Treasury statements for 2012-2014, the programme materials and other necessary internal information as well as the information from public sources, which the Rating agency considers reliable.