Page 25 - UKRRptNov21

in August). At the same time, exports of mineral products slowed to 28% y/y growth (vs. 2.2x y/y in August).
Goods imports growth accelerated 44% y/y to $6.4bn in September (vs. 42% y/y growth in August). In particular, imports of mineral products surged 2.5 times, chemical imports advanced 49% y/y. In addition, imports of machinery advanced 18% y/y and imports of foods jumped 22% y/y.
The financial account switched to a deficit of $1.8bn in September from being in balance in the prior month. In particular, the net outflow under the operations of the government sector amounted to $2.0bn related to the redemption of international Eurobonds. The net inflow from foreign direct investment is assessed at $685mn, including income reinvestment of $609mn. At the same time, the net foreign currency inflow from the banking sector amounted to $71mn, while the outflow under trade credits amounted to $73mn.
The deficit of Ukraine’s balance of payments amounted to $2.2bn in September (vs. a $126mn surplus in August).
In 9M21, the deficit of Ukraine’s balance of payments amounted to $2.2bn (vs. a deficit of $0.5bn in 9M20).
Abundant exports of agricultural produce from the new season’s crop gave an additional impetus to the goods export growth in September, offsetting the weakened growth in exports of mineral products caused by the deteriorated prices for iron ore. The high pace of the growth of goods imports is mostly prompted by growing prices for energy resources.
High goods exports are likely to last through the end of the year, maintained by accelerated agricultural exports. We expect Ukraine’s C/A deficit to land at $1bn in 2021 (vs. a $5.2bn surplus in 2020).
25 UKRAINE Country Report November 2021 www.intellinews.com