Page 25 - Ukraine OUTLOOK 2024

this quarter, according to Trading Economics.
During the three quarters of 2023, the foreign trade deficit in Ukraine soared by 220%. The negative balance of Ukraine's foreign trade in January-September widened by more than three times compared to the same period last year, to $19.4bn from $6.03bn, the State Statistics Service reported. Exports decreased by 17.8% to $27.15bn, while imports climbed by 19.2% to $46.55bn.
The improvement in the foreign trade balance in November was influenced by the automobile blockade at the borders with the EU and greater sea transportation. The blockade of freight traffic by Poland and Slovakia was the main reason imports decreased by 10.1%.
As for exports, due to the blockade, most of the main product groups also declined (metals by 5.1%, machines/equipment by 3.5%, wood by 14.9%).
“However, an important role was played by the increase in sea and river transportation, primarily of agricultural products," the specialised committee of the Ukrainian Parliament noted.
Exports by sea and river transport rose by 71% in November. Accordingly, agricultural raw materials and food exports grew by 20% for the month.
Visa-free transport given by the EU has boosted Ukraine's exports and imports by road by more than 40%. Ukrainian exports and imports to and from the EU increased by 47.5% and 44% respectively during the agreement on cargo transportation between Ukraine and the EU (transport visa-free), Minister of Infrastructure Oleksandr Kubrakov said. With the help of the agreement, exports by road transport surged by 30% this year and imports by 25%, he noted.
According to his data, compared to 2021’s volumes, in 2022 exports from Ukraine to the EU by road rose by 41%, and imports by 11%. Kubrakov noted that the complete unblocking of the Polish-Ukrainian border and the prevention of further blockades in the future should become a principle of economic security for the region.
Ukraine's output from the export of agricultural products fell by 7%. In January-November, Ukraine exported agricultural food products worth $19.637bn, 7% less than in the corresponding period of 2022, according to the analysis from the Institute of Agrarian Economics. At the same time, it is noted that farm products retain a dominant position in Ukraine's overall exports, with a share of 60%.
The country's agricultural exports are traditionally based on grain and oil crops, oil, food industry residues, meat and meat by-products, which account for 87% of their total value. Analysts draw attention to numerous challenges for exporters that have arisen this year. In addition to the war, there was the addition of bans and restrictions on the import of certain types of products.
Ukrainian ports expanded cargo handling by 15.8% in 2023. Ukrainian sea ports in January-November 2023 increased cargo transshipments compared to last year's similar period by 15.8%, up to 52.8mn tonnes. Transshipments of export goods in January-November amounted to 47.9mn tonnes, and imports amounted to 4.6mn tonnes.
25 UKRAINE OUTLOOK 2024 www.intellinews.com