Ukraine goods trade deficit widens to USD 1.9 bln in 1H17

Ukraine’s trade deficit on goods reached USD 1.9 bln
in 1H17, up from USD 0.7 bln in the same year-ago period, the State Statistics
Service reported on Aug. 14. 

Exports of goods slowed to 24.2% yoy growth in 1H17
(from 25.9% yoy in 5M17) owing to growth in minerals (61% yoy), food (34% yoy),
food oils (27% yoy), metals (23% yoy) and grains (23% yoy).

Imports of goods strengthened to 29.9% yoy growth in
1H17 (from 28.6% yoy in 5M17) owing to growth in energy (71% yoy), vehicles
(58% yoy) and metals (31% yoy). Non-energy imports sped up to 20.6% yoy growth
in 1H17 (from 19.1% yoy in 5M17).

Exports to the CIS countries slowed to 24.6% yoy
growth in 1H17 (from 29.8% yoy for 5M17). Exports to the EU sped up to 26.1%
yoy growth (25.2% yoy in 5M17).

Alexander Paraschiy: Exports
slowed and imports strengthened in June, as we expected.
Provisional customs statistics indicate the trade deficit is already touching
USD 2.8 bln for 7M17 (compared to a USD 1.0 bln deficit a year ago). 

Despite the recent trade deficit expansion, the
tendency might be changing this month owing to soaring global resource prices,
which Ukrainian exporters would benefit from. Yet it’s not clear for how long
this can continue and we are keeping our initial trade deficit forecast
unchanged at USD 4.4 bln for 2017 (according to UkrStat methodology).