Page 32 - UKRRptSept19

5.2 Balance of payments, current account
Ukraine’s foreign trade deficit hit $1.6bn during the first half of this year,
two thirds greater than during the same period last year. Exports of goods and services increased by 6%, to $29.5bn. Imports increased by 8%, to $31.1bn.
Since 2015, remittances from Russia have almost dropped in half, while remittances from Polance have tripled, according a graph by RFE/RL, based on National Bank of Ukraine data. Rivalling Russia for second place, remittances from the Czech Republic have increased 5-fold since 2015, to almost $250mn in the first quarter of 2019.
Ukraine’s current account (C/A) deficit swelled to $609mn in July, from $407mn in June, due to the widening trade deficit, the National Bank of Ukraine (NBU) reported on August 29. The trade deficit enlarged to $1.4bn from $1.2bn in the previous month. The primary income surplus amounted to $478mn (vs. $491mn in June), while the secondary income surplus was $303mn (vs. $264mn in June).
In 7M19, the C/A deficit amounted to $864mn (vs. a deficit of $1.6bn in 7M18).
In July, the trade deficit in the goods balance enlarged to $1.5bn from $1.3bn in June. Goods exports jumped 20.3% y/y to $4.0bn (vs. a 5.2% y/y decline in June), while goods imports accelerated 9.6% y/y to $5.5bn growth (from 6.3% y/y growth in June). The surge in export growth was mostly led by growth in food exports of 36.5% y/y (vs. 3.0% y/y growth in June).
In addition, metal exports increased 1.2% y/y (vs. a 21.9% plunge in June). Exports of mineral products accelerated to 37.6% y/y from 19.4% y/y in the previous month. On top of that, machinery exports swelled to 45.1% y/y growth
32 UKRAINE Country Report September 2019 www.intellinews.com