Ukraine goods trade balance switches to USD 0.4 bln surplus in April

Ukraine’s goods trade balance switched to a USD 418 mln
surplus in April from a USD 579 mln deficit in the prior month, the State
Statistics Service said in its preliminary report published on June 15. The
seasonally adjusted goods trade surplus amounted to USD 169 mln (vs. a USD 505
mln deficit in March) amid 0.7% m/m growth in adjusted exports and a 14.4% m/m
decline in adjusted imports.

Goods exports slid 6.2% yoy in April to USD 3.8 bln
(vs. a 4.2% yoy drop in March). The decline was mostly driven by falling
exports of ferrous metals (-17.6% yoy) and machinery (-22.6% yoy).  At the
same time, exports of food oils and fats surged 43.5% yoy, exports of mineral
products grew 8.5% yoy, and grain exports climbed 4.0% yoy.

Goods imports plummeted 27.4% yoy to USD 3.4 bln in
April (vs. a 4.0% yoy drop in March). In particular, imports of energy products
plunged 40.9% yoy, machinery imports decreased 29.1% yoy, and imports of
vehicles and aircraft fell 39.9% yoy.

In 4M20, the goods trade deficit amounted to USD 0.7
bln (vs. USD 2.1 bln in 4M19). Goods exports slid 1.7% yoy, while goods imports
dropped 9.3% yoy.

Evgeniya Akhtyrko: These
results meet our expectations of a deeper decline both in goods exports and imports in April. However,
the consequences of the worldwide corona crisis and quarantine restrictions
were more devastating for Ukraine’s imports than for exports. And this resulted
in a significant improvement in Ukraine’s goods trade balance. It was also
positive to see that some important items of Ukraine’s exports managed to show
growth during perhaps the bleakest month of the pandemic.

May’s statistics are likely to show further drops
in both goods exports and imports. But as in April, the imports decline is
likely to be deeper than the fall in exports, which might result in further
improvement of Ukraine’s trade balance.