Page 26 - UKRRptAug19

5.2 Balance of payments, current account
Ukraine posts $744mn in balance of payments surplus in 1H19. In June 2019 alone, the surplus of the balance of payments was $1.210bn.
Deficit of Ukraine's foreign trade in goods, services 13% up in H1 2019 The deficit of foreign trade in commodities over the period under review grew by 22%, to $5.256bn.
In 2019, the current account deficit will narrow to 2.6% of GDP, thanks to the bumper grain harvest, a drop in energy prices, and a decline in dividend repatriation. In 2020-2021, the current account deficit will widen slightly, as a result of a decrease in natural gas transit, less favorable terms of trade, and stronger consumer and investment demand, according to the NBU.
Ukraine’s Cabinet predicts growth in Ukraine's trade deficit Under the first scenario, unemployment rate in Ukraine will gradually decrease: to 8.1% in 2020, to 8% in 2021, and to 7.9% in 2022, from 8.8% reported in 2018.
Ukraine’s current account (C/A) surplus expanded to $249mn in May from just $33mn in April, due to an increased surplus on the primary income balance and declining trade deficit, the National Bank of Ukraine (NBU) reported on June 27.
The primary income balance surplus enlarged to UAH624mn from UAH477mn in the previous month, while the trade deficit shrank to $648mn from $702mn.
In 5M19, the C/A surplus amounted to $257mn (vs. a deficit of $526mn in 5M18).
In May, the deficit of trade in the goods balance shrank to $820mn from
26 UKRAINE Country Report August 2019 www.intellinews.com