Foreign Trade Deficit Climbs to USD 2.98 bln in 4M07

According to the State Statistics Committee, the foreign trade deficit in goods widened to USD 2.98 bln (+38% yoy) as imports grew slightly faster than exports during the whole period from the beginning of the year (+35.9% versus 35.3% yoy). Exports amounted to USD 14.8 bln in 4M07, while imports totaled USD 17.8 bln. The main drivers of import growth are oil and gas products (34.2% yoy), machinery (33.3% yoy) and transport activities (57.5%). The continuing growth of imports in these industries is due to the recovery of investment activity in Ukraine. We maintain our estimated trade deficit of USD 7.7 bln by yearend.