Ukraine’s current account deficit swells to $293mn in July from -$31mn in June

Ukraine’s current account deficit swells to $293mn in July from -$31mn in June
Ukraine’s current account swells to $293mn in July from -$31mn in June
By bne IntelliNews September 1, 2021

Ukraine’s current account (C/A) deficit amounted to $293mn in July, enlarging from a $31mn deficit (revised from a previously reported surplus of $295mn) in the previous month mostly due to a deteriorated trade balance, the National Bank of Ukraine (NBU) preliminarily reported on August 31.

The goods trade deficit amounted to $578mn (vs. a $327mn deficit in June), while the surplus of trade in services increased to $332mn from $316mn in June. The deficit of the primary income balance enlarged to $439mn from $371mn (revised from previously reported deficit of $55mn) in the prior month. The surplus of the secondary income balance increased to $392mn from $321mn in June.

In 7M21 the C/A deficit amounted to $0.9bn (vs. a $4.1bn surplus in 7M20).

Goods exports surged 54% year on year in July (vs. 61% y/y growth in June) to $5.2bn. The growth was mostly driven by a surge in exports of ferrous metals (2.2x y/y) and mineral products (2.4x y/y). In addition, food exports grew by 14% y/y, exports of chemicals jumped 19% y/y and machinery exports advanced 15% y/y.

Goods imports jumped 33% y/y to $5.8bn in July (vs. 36% y/y growth in June). In particular, imports of mineral products surged 75% y/y, chemical imports advanced 35% y/y. In addition, imports of machinery jumped 27% y/y and imports of foods added 16% y/y.

The surplus of the financial account amounted to $776mn, staying almost flat from a surplus of $776mn in June (revised from previously reported surplus of 457mn). In particular, the net inflow under the operations of the government sector amounted to $342mn. The net inflow from foreign direct investment (FDI) is assessed at $617mn, including the income reinvestment of $483mn. At the same time, the net foreign currency outflow from the banking sector amounted to $356mn, the outflow under the trade credits amounted to $300mn.  

The surplus of Ukraine’s balance of payments amounted to $484mn in July (vs. a $753mn surplus in June).

In 7M21, the surplus of Ukraine’s balance of payments amounted to $0.8bn (vs. a surplus of $1.1bn in 7M20).

 

Data

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