Merchandise Trade Deficit Hits USD 9.6 bln in 11M07

Yesterday the State Statistics Committee released merchandise trade numbers for 11M07. Exports totaled USD 44.4 bln (+27.9% yoy), while imports amounted to USD 54.0 bln (+34.2% yoy). Thus, in 11M07 merchandise trade deficit made up USD 9.6 bln (+73.9% yoy) or 7.7% of GDP. Andrii Parkhomenko: The main drivers of the deficit widening remain strong growth in imports of vehicles (57.9% yoy), machinery (40.8% yoy), chemicals (36.9% yoy), and natural gas (35.1% yoy). We expect the trade balance in services being positive in 2007 and moderating the overall trade imbalance, which we estimate to reach USD 6.3 mln in 2007.