Page 28 - bne IntelliNews Ukraine Country Report May 2017

5.1 Balance of payments, current account
Ukraine's trade balance in goods for 2M17 reached a $423mn deficit from the $757mn deficit a year ago ($86.7mn deficit in January), the State Statistics Service reported on April 14.
Exports grew 32.7% y/y owing to the traditional factors of minerals (85% y/y), metals (46% y/y) and food (31% y/y). Imports rose 22.1% y/y owing to energy (50% y/y) and machinery (24% y/y). Non-energy imports increased 14% y/y in 2M17.
Exports to the EU slowed to 16% growth (from +26% y/y in January). Exports to the CIS countries eased to 50% y/y growth (from +69% y/y in January).
The 2M17 trade balance was better than projected owing to soaring metal and iron ore prices. It was achieved despite the trade blockade of occupied Donbas imposed by paramilitary activists since February 10-11.
Still, the trade deficit widening through the course of the year with energy imports strengthening (to compensate for interrupted coal supplied from Donbas) and export proceeds cooling (owing to an expected metal price rollback).
Concord Capital is keeping our initial forecast of a $4.4bn trade deficit in 2017 (according to UkrStat methodology).
28 RUSSIA Country Report April 2017 www.intellinews.com