Merchandise Trade Deficit Widens to USD 8.22 bln in 10M07

The State Statistics Committee reported yesterday that foreign trade shortfall hit USD 8.22 bln in 10M07. In 10M07 imports surged 32.9% yoy to USD 48.2 bln while exports rose only 27.4% yoy to USD 40.0 bln. Polina Khomenko: The main drivers accelerating imports in Jan-Oct were machine-building (up 47.5% yoy), natural gas (up 32.6% yoy), chemicals (up 37% yoy). We expect the trade balance in services to reach positive USD 3 bln at the year-end and smooth this year’s merchandise trade deficit. We maintain our forecast for the merchandise trade balance in 2007 of USD 8.6 bln and for the foreign trade balance of USD 5.6 bln.