Page 29 - UKRRptMar21

Goods imports decline was mostly prompted by falling imports of energy materials​ (-32.3% y/y), machinery (-13.3% y/y) and vehicles (-6.8% y/y). At the same time, food imports advanced 13.5% y/y. The decline of exports was mostly due to the drop in exports of ferrous metals (-12.0% y/y) and grains (-2.2% y/y). Exports of mineral products advanced 9.6% y/y, food exports grew 4.4% y/y, exports of chemicals added 4.6% y/y.
In December alone, the goods trade deficit swelled 59.9% m/m to $817mn
from $511bn. The seasonally adjusted goods trade deficit enlarged 7.0% m/m amid a 3.3% m/m increase in adjusted exports and 37% m/m growth in adjusted imports.
Ukraine’s goods trade deficit shrank significantly as the country’s imports were affected by the coronavirus crisis more than exports in 2020​. Ukraine benefited from price decline for energy resources, which had lasted for the most of the year. Imports of machinery and vehicles declined amid plummeted demand for investment goods.
At the same time, Ukraine’s export performance was quite decent in a crisis year. The drop in world demand for Ukraine’s major export goods (grains and ferrous metals) was mostly compensated by increased exports of iron ore, chemicals and foods.
In 2021, goods trade deficit will enlarge as growth of goods import ​will outpace export growth. We expect that the 2021 goods trade deficit (according to UkrStat methodology) will swell to $8.3bn.
29​ UKRAINE Country Report​ March 2021 ​ ​www.intellinews.com