Ukraine goods trade balance switches to surplus of in August

Ukraine’s goods trade balance switched to a surplus of
USD 105 mln in August from a deficit of USD 616 mln in July, the State
Statistics Service announced in a preliminary report on Oct. 13. The seasonally
adjusted goods balance was in a deficit of USD 80 mln (vs. a USD 156 mln
deficit in July) amid 1.9% m/m growth of adjusted exports and a 0.6% m/m
increase in adjusted imports.

Goods exports jumped 49% yoy in August to USD 6.27 bln
(vs. a 51% yoy increase in July). The accelerated growth was mostly driven by
exports of ferrous metals and mineral products (both increased 2.2 times
year-on-year).

Goods imports increased 37% yoy to USD 6.17 bln in
August (vs. 35% yoy growth in July). The major contributors to the accelerated
growth included energy products (2.2 times year-on-year) and chemicals (+53%
yoy).

In 8M21, the goods trade deficit amounted to USD 1.7
bln (vs. a deficit of USD 2.6 bln in 8M20); goods exports increased 35.6% yoy
and imports jumped 30.1% yoy.

Evgeniya Akhtyrko: In August,
a fast rise in imports of energy products and chemicals was compensated by the
continuation of high receipts from exports of metals and mineral products. The
slowdown in imports of vehicles (related to purchase of used automobiles by
individuals) somewhat restrained import growth.

Given the improvement of the goods trade balance in
August, Ukraine is likely to finish this year with a lower goods trade deficit
than in 2020 (USD 5.1 bln).