Page 31 - UKRRptAug18

machinery (1.9% y/y growth in June vs. 11.3% y/y growth in May). Meanwhile, strong growth in metals (35.2% y/y) restrained the trade deficit.
In 1H18, goods imports rose 14.0% y/y while exports grew 11.7% y/y.
The surplus of Ukraine’s financial and capital account decreased to $148mn in June (from $293mn in the prior month), mainly because of an outflow in the banking sector ($376mn of net outflow vs. $64mn of net inflow in May) and trade credits ($70mn of net outflow in June vs. $412mn of net inflow in May).
Net foreign direct investment improved to $462mn in June from $150mn in May. In 1H18, the balance of payments surplus amounted to $23mn.
The National Bank Ukraine (NBU) revised Ukraine’s C/A deficit for 2017 to $2.4bn from $2.0bn as a result of improving the methodology for estimating banking-sector foreign direct investment (FDI) with regard to reinvested income, the regulator reported in its press release on July 13. Meanwhile, the consolidated balance of payments did not change as mirror adjustments were applied to the FDI item of the financial account.
5.2.1 Import/export dynamics
External 2007 2008 2009 2010 2011 2012 2013 201 2015 2016 Jan-Nov 2017 2018 balance 4 2017 E F
Exports (US$bn) 61.4 82.5 52.1 65.6 83.7 86.5 81.7 65.4 47.6 44.9 39.4 60.2 60.8
Imports (US$bn) 69.5 96.8 54 69.6 93.8 100.9 97.4 70 49 50.3 44.5 54.6 57.2
Trade balance -8.1 -14.4 -2 -4 -10.1 -14.3 -15.6 -4.6 -1.5 -2.9 -5.2 -5.3 -6.4 (US$bn)
Trade balance -5.7 -7.8 -1.7 -2.9 -6.2 -8.2 -8.7 -3.5 -1.6 -5.8 / -4.4 -5.9 (% of GDP)
Source: ICU
Ukraine-China trade and cooperation continues growing. Bilateral trade between Ukraine and China in 2017 grew by 18% to $7.7bn over the previous year and amounted Minister/Minister of Economic Development and Stepan Kubiv announced this at a meeting with Chairman of the China Council for the Promotion of International Trade, Jiang Zengwei. He urged Chinese companies to collabourate in joint projects concerning solar energy, agriculture, infrastructure development, including port infrastructure, the government portal reports.
With China selling to Ukraine three times as much as Ukraine sells to China, Ukraine plans to have a major commercial presence at the First China International Import Expo-2018 in Shanghai in November. “I am sure that after this exhibition, Ukrainian products will get even bigger share in China's
31 UKRAINE Country Report August 2018 www.intellinews.com