Page 33 - UKRRptJun19

5.2 Balance of payments, current account
During the first quarter of this year, Ukraine’s overall trade deficit increased by 13%, compared to the first quarter of 2018, to $1.5bn, the State Statistics Service reported Wednesday. Exports were up 7.4%, to $12.3bn. Imports were up 7.9%, to $13.7bn. The EU took 43% of Ukraine’s exports of goods and one third of its exports of services in the first quarter, the State Statistics Service reported Wednesday.
Ukraine’s current account (C/A) deficit enlarged $650mn in March (from $299mn in February) due to a Eurobond coupon payment, the National Bank of Ukraine (NBU) reported on April 28. The $555mn coupon payment on international Eurobonds caused a negative balance in primary income of $111mn in March (vs. a surplus of $501mn in February). In 1Q19, the C/A deficit amounted to $422mn (vs. $525mn in the first quarter of 2018).
Meanwhile, the goods trade deficit in March contracted to $0.8bn from $1.0bn in previous month. Goods imports slowed to 6.7% y/y growth from 13.9% y/y growth in February. In particular, imports of mineral products declined 8.8% y/y (vs. 8.0% y/y growth in February). At the same time, chemical imports surged 17.6% y/y (vs. 4.7% y/y in Fegruary). Machinery imports increased 13.9% y/y (vs. 38.9% y/y growth in February).
Goods exports rose 7.1% y/y (vs. 7.5% y/y growth in February). As in the previous month, the exports growth was led by food and agricultural produce (19.9% y/y growth). Meanwhile, ferrous metal exports continued to decrease, falling 12.6% y/y. Machinery exports accelerated in March to 35.9% y/y growth (vs. 16.1% y/y growth in February).
The March financial account surged to $1.3bn (vs. a $49mn deficit in February). In particular, the net currency inflow to the banking sector amounted to $878mn (vs. $1.2bn outflow in February). In addition, the March balance of
33 UKRAINE Country Report June 2019 www.intellinews.com