Page 25 - UKRRptApr19

5.1 External sector overview
The start of the year is good for Ukraine as it can use all the EU no-duty export quotas and exports are strong leaving a small deficit. However, most of these quotas are used up by the end of February and the deficit becomes more significant over the rest of the year.
5.2 Balance of payments, current account
Ukraine’s current account (C/A) was back in a surplus of $446mn in January from a deficit of $344mn the month before, mostly due to a smaller goods trade deficit, the National Bank of Ukraine (NBU) reported on March 3.
January’s was the highest monthly surplus since December 2015. The trade deficit shrank to $247bn, the lowest since September 2017, from $982mn in December as goods exports surged ahead of goods imports.
In particular, goods imports inched up only 1.2% y/y (to $4.0bn) owing to falling imports of mineral products (-9.0% y/y) and chemicals (-9.3%). Machinery imports surged 21.7% y/y.
Goods exports reached $3.7bn, accelerating to 9.1% y/y growth (from 4.2% y/y growth in December). The growth was driven by exports of foods, which surged 22.9% y/y (vs. 17.0% y/y growth in December) and metals, which increased 7.8% y/y (vs. a 7.3% y/y decline in December). Meanwhile, exports fell among mineral products (a 0.4% y/y drop vs. 14.8% y/y growth in December), machinery (a 16.4% y/y fall vs. 8.9% y/y decline in December) and chemicals (a 24.0% y/y plunge vs. 15.4% y/y decline in December).
25 UKRAINE Country Report April 2019 www.intellinews.com