Page 24 - UKRRptAug19

Source: SP Advisors
5.1 External sector overview
Poland overtook Russia to become Ukraine’s biggest trade partner in May and maintained its lead in April (the most recent month of data), accounting for about 15% of trade amongst Ukraine’s top 15 trade partners. All-in-all Russia’s share in Ukraine’s trade continues to sink slowly, down from circa 9% to just over 6% in April y/y, although Russia remains easily the second largest trade partner.
Another big change in the trade regime is the appearance out of nowhere of China that is now Ukraine’s third largest trade partner. China’s trade has been almost doubling every month this year rising from $160mn in January to $313mn in February, $640mn in March and was $916mn in April, according to the official statistics.
Overall Ukraine’s trade is growing but the balance of payments deficit is growing faster as wage growth sucks in imports. But with a fifth of the population working abroad the circa $10bn they send home a year easily covers the deficits so the current account deficit remains modest.
24 UKRAINE Country Report August 2019 www.intellinews.com