Merchandise Trade Deficit Widens to USD 5.3 bln in 7M07.

The Ukrainian Statistical Committee released data on Friday showing the merchandise trade deficit in January-July had widened to USD 5.3 bln (+56% yoy). Exports grew by 31.9% yoy in 8M07, import growth reached 35% yoy. Our estimate for the yearend merchandise trade balance deficit is USD 7.7 bln. We expect the surplus in trade services (USD 1.5 bln) to slightly offset the merchandise trade balance deficit bringing the current balance deficit to USD -6.2 bln