The Impact of Changes in Global Investment Flows on the Stability of the Ukrainian Financial Market

Abstract

In recent years, the dynamics of global investment flows have undergone significant changes due to factors such as the COVID-19 pandemic, geopolitical tensions, and shifting global economic priorities. These transformations are of particular importance for Ukraine, whose financial market remains highly vulnerable to external capital flows and global economic conditions. As the country faces dual challenges - instability caused by the war and the need for economic modernisation - the analysis of the impact of global investment trends on the Ukrainian financial market is of particular relevance.

The purpose of the article is to analyse the impact of changes in global investment flows on Ukraine's financial stability, assess their implications for key financial indicators, and explore strategies to mitigate risks and take advantage of opportunities arising from these changes.

Methods. The methods used for the study are the analysis of scientific literature, comparison and generalisation.

Results. It is noted that since 2020, Ukraine has experienced a significant decline in foreign direct investment and other types of capital inflows. The partial recovery of this process is constrained by geopolitical risks and global economic instability. Key financial indicators, such as foreign exchange reserves and the stability of the hryvnia, are supported mainly by international assistance rather than market investments. The financial market's dependence on external funding increases the risks associated with global economic fluctuations, in particular rising interest rates and inflationary pressures in developed countries. At the same time, new sectors, such as renewable energy and IT, offer prospects for attracting targeted investments, provided that structural reforms are implemented and the investment climate improves.

Conclusions. The stability of Ukraine's financial market is closely linked to global investment trends, which requires addressing vulnerabilities and strengthening resilience. Key steps include strengthening the regulatory framework, increasing transparency, and aligning it with global economic priorities, which will help reduce risks and attract sustainable capital inflows.