Page 34 - UKRRptMay19

5.2 Balance of payments, current account
Ukraine’s current account switched to a deficit of $381mn in February vs a surplus of $527mn, due to an enlarged trade deficit, the National Bank of Ukraine (NBU) reported on March 29.
The goods trade deficit enlarged to $1.1bn from $235mn in January. In addition, the trade balance in services switched to a deficit of $47mn from a surplus of $67mn in the prior month. In January-February, the current account surplus amounted to $146mn (vs $187mn in January-February).
The merchandise trade deficit surged amid accelerated imports. Goods imports increased 14.9% year-on-year, fueled by mineral product imports rising 13.8% y/y (vs a 13.1% y/y decline in January). Yet it was machinery imports, which surged 38.9% y/y (vs 21.4% y/y in February), that continued to lead overall import growth.
Meanwhile, goods exports increased by 7.3% y/y in February vs a 9.6% y/y growth in January. Metal exports fell 17.9% y/y vs 7.8% growth in January. At the same time, food exports - the major driving force of Ukrainian exports - accelerated to 26.9% y/y (from 22.9% y/y growth in January). In January- February, goods imports rose 7.4% y/y, while exports grew 8.5% y/y.
The February financial account surplus was $131mn (vs a $590mn deficit in January). In particular, FDI inflow swelled to $369mn (from $168mn in January).
The foreign currency inflow under the short- and long-term loans of the
34 UKRAINE Country Report May 2019 www.intellinews.com