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Ukraine C/A deficit to drop to 7% of GDP in 2013, Arbuzov says

Ukraine C/A deficit to drop to 7% of GDP in 2013, Arbuzov says

14 June 2013

The Ukrainian government expects the current account deficit to decline to 7% of GDP in 2013 from 8.4% of GDP in 2012, First Vice Prime Minister Serhiy Arbuzov said on June 13 at the “ABC: Ukraine and Partners” international conference in Kyiv.

 

Alexander Paraschiy: Arbuzov has quite an optimistic view on external trade developments. His 7% target has a chance to be reached if the government cuts natural gas imports further in 2H13. Perhaps three years of talks with Russia may finally produce results soon, but the chances for such a scenario still remain low. Against this backdrop, we keep our forecast for the C/A deficit at USD 15.4 bln, or 8.4% of GDP (if the hryvnia isn’t devalued).

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