Ukraine goods trade deficit reaches USD 3.3 bln in 8M17

Ukraine’s trade deficit in goods reached USD 3.3 bln
as of the end of August, more than doubling from USD 1.5 bln a year ago, the
State Statistics Service reported on Oct. 17. The widening deficit was driven
by goods import growth (27.4% yoy in 8M17) exceeding export growth (21.1% yoy).

Goods exports grew on the back of minerals (51% yoy
growth), food oils (28% yoy), food (28% yoy), metals (18% yoy), grains (16%
yoy), and machinery (16% yoy).

Goods imports were led by energy (61% yoy growth for
8M17), vehicles (52% yoy), metals (28% yoy), machinery (25% yoy), chemicals
(14% yoy) and plastics (12% yoy).  Non-energy imports grew 19.3% yoy for
8M17, slightly slowing from 20.5% yoy growth in 7M17.

Exports to the EU sped up to 27.9% yoy growth for 8M17
(compared to 25.9% yoy in 7M17). Exports to the CIS slowed to 18.8% yoy growth
from 20.6% yoy in 7M17.

Alexander Paraschiy: The trade
deficit is expanding somewhat faster than we projected. Exports are reviving
but imports are also gaining momentum.

Provisional customs statistics tell that the trade
deficit has reached already USD 3.8 bln in 9M17 (from USD 1.8 bln a year ago).
If this tendency preserves itself, we will see 2017 trade deficit far above the
USD 4.4 bln that we initially projected (according to UkrStat
methodology).