Page 27 - UKRRptOct21

5.2 Balance of payments
The goods trade deficit shrank to $157mn in August from $697mn in July, while the surplus of trade in services increased to $234mn from $227mn.
The deficit of the primary account shrank to $260mn from $328mn in July. At the same time, the surplus of the secondary account declined to $388mn from $420mn in July.
Goods exports jumped 52% y/y in August (vs. 55% y/y growth in July) to $5.9bn. The growth was mostly driven by a surge in exports of ferrous metals (2.1x y/y) and mineral products (2.2x y/y). In addition, food exports jumped 26% y/y, exports of chemicals surged 97% y/y, while machinery exports declined 7% y/y.
Goods imports growth accelerated 41% y/y to $6.0bn in August (vs. 36% y/y growth in July). In particular, imports of mineral products surged 2.3 times, chemical imports advanced 48% y/y. In addition, imports of machinery advanced 14% y/y and imports of foods jumped 25% y/y.
The financial account was almost balanced in August having an insignificant deficit of $77mn (vs. the surplus of $861mn in July). In particular, the net outflow under the operations of the government sector amounted to $384mn. The net inflow from foreign direct investment is assessed at $747mn, including income reinvestment of $563mn. At the same time, the net foreign currency inflow from the banking sector amounted to $205mn, while the outflow under the trade credits amounted to $332mn.
The surplus of Ukraine’s balance of payments amounted to $126mn in August (vs. a $484mn surplus in July).
In 8M21, the surplus of Ukraine’s balance of payments amounted to $0.9bn (vs. a surplus of $1.5bn in 8M20).
Ukraine’s goods trade deficit enlarged to $525mn in July from $244mn in June, the State Statistics Service announced in a preliminary report on September 14. The seasonally adjusted goods trade deficit amounted to $72mn (vs. a $22mn deficit in June) amid a 3.1% m/m growth of adjusted exports and a 4.1% m/m increase in adjusted imports.
Goods exports jumped 51% y/y in July to $5.60bn (vs. a 57% y/y increase in June). The accelerated growth was mostly driven by exports of ferrous metals and mineral products (both increased 2.3 times year-on-year).
Goods imports increased 35% y/y to $6.13bn in July (vs. 37% y/y growth in June). The major contributors to the accelerated growth included energy products (almost doubled year-on-year), vehicles (+40% y/y) and chemicals (+37% y/y).
In 7M21, the goods trade deficit amounted to $1.7bn (vs. a deficit of $2.3bn in 7M20); goods exports increased 33.4% y/y and imports jumped 28.6% y/y.
The incredibly favorable period of high prices for Ukraine’s major export items
27 UKRAINE Country Report October 2021 www.intellinews.com