Current Account Surplus Equals USD 580 mln in 3Q06

The 3Q06 surplus improved the cumulative account balance to USD -202 mln (USD -782 mln in 1H06), according to the National Bank of Ukraine.  Alexander Viktorov: Despite the fact that during June-September, the monthly growth in the export of goods outpaced that of imports, in 9M06 imports grew faster: imports increased by 19.2% yoy, while exports increased 9.6% yoy. The 9M06 merchandise trade balance was USD -2.9 bln. The positive balance in trade of services at USD 1.6 bln mitigated the negative figures in the trade of goods, which resulted a total foreign trade balance of USD -1.3 bln for the period. FDI inflow accelerated in 9M06: USD 1.6 bln in 3Q, USD 1.3 bln in 2Q and USD 0.7 bln in 1Q06. We maintain our forecast that the current account balance will be close to zero by the end of the year.