Merchandise Trade Deficit Widens to USD 4.2 bln in 1H07

Yesterday, the Ukrainian Statistical Committee reported that in 1H07, the merchandise trade deficit widened to USD 4.2 bln (+40% yoy). Polina Khomenko: During the year, exports grew at a rapid pace (32.9% yoy in Jan-Jun 2007), driven by the export of metals (+36.6% yoy), machinery (+47.9% yoy) and transport (+60.1%). High import growth (+33.8% yoy) was driven mainly by oil products (+34.4% yoy), gas (+54.6% yoy) and machinery (+30.8% yoy). Our estimate for the yearend merchandise trade balance is USD 6.2 bln.