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5.2.1 Import/export dynamics
The boom in Ukraine’s external trade continues. The export receipts are ballooning amid an incredibly favourable global price situation for iron ore and ferrous metals. The growth of Ukraine’s other export items is also strong, and this is not only the result of the low comparative base of the previous year.
Ukraine’s foreign trade in goods increased by almost 30% for the first half of this year, compared to the same January-June period last year said Taras Kachka, Ukraine’s Trade Representative writes on Facebook. Compared to the first half of 2019, the last ‘normal’ year, trade is up 22% and the trade deficit is down 60%, to $1.25bn.
Exports to China reached $4.28bn, nearly three times the level of 2019.
Exports to the EU reached $12.3bn, 20% higher than 2019. Trade with Turkey changed from a deficit last year of $80mn to a surplus this year of $460mn
Exports of furniture are up 56%, to $510mn. Exports of industrial goods are up 18%, to $2.4bn.
Ukraine’s exports to Russia plummeted by 78% from 2013 to 2019,
Tymofiy Milovanov, Presidential Economic Advisor said on July 6 at the Ukraine 30 International Politics forum. During that period, Ukraine’s exports to the EU increased by 24%. “We have increased exports to the European Union and reduced them to Russia,” he said. “But in general we have not yet been able to compensate for those losses from exports to Russia at the expense of the EU. But I am sure that it will happen.”
5.2.2 Current account dynamics
Ukraine’s current account surplus grew to $723mn in May, up from $443mn in April, reports the National Bank of Ukraine. Behind the growth was a surge in export earnings from: mineral products +188% y/y; ferrous metals + 95%; food exports + 29%; chemicals +57%; machinery + 30%.
26 UKRAINE Country Report August 2021 www.intellinews.com