Balance of payments current account deficit makes USD 1.6 billion in March

In March 2024, the current account deficit of the balance of payments was USD 1.6 billion (in March 2023, the surplus was USD 14 million).

This follows from a statement by the National Bank, the Ukrainian News agency reports.

The deficit was formed primarily as a result of a reduction in the receipt of grants from international partners.

The negative balance of trade in goods also widened - both due to a decrease in the export of goods and an increase in their imports.

Excluding reinvested income and grants from international partners, the deficit amounted to USD 1.7 billion (in March 2023 – USD 0.8 billion).

In the first three months of 2024, the current account deficit amounted to USD 2.2 billion (Q1 2023 – USD 1.8 billion).

Excluding reinvested income and grants from international partners, the deficit amounted to USD 3.0 billion (Q1 2023 – USD 4.3 billion).

Exports of goods decreased by 13.6% (in February 2024, they increased by 6.9%), and imports increased by 3.8% (in February 2024, they decreased by 6.6%).

Compared to the previous month, the export of goods decreased by 6.0%, and their import increased by 18.5%.

The volume of exports of goods amounted to USD 3.2 billion.

Almost all of the decrease was provided by the fall in the export of food products (18.6%), namely grain crops (by 30.0%).

The export of oilseeds also decreased (by 31.7%) and oils and fats (by 8.9%).

At the same time, the export of food industry products increased (by 6.3%).

The volume of goods imported amounted to USD 5.7 billion.

The growth of non-energy imports in March (by 13.3%; by February – by 20.7%) was only partially offset by a decrease in energy imports (by 33.8%; by February it had grown by 5.3%).

The deficit in trade in services narrowed to USD 0.5 billion (in March 2023, it was USD 0.9 billion), both due to a decrease in the import of services (by 13.3%) and due to an increase in their export (by 3.9%).

The balance of payments in March showed a substantial surplus of USD 6.4 billion (in March 2023 – USD 3.4 billion).

Net borrowings from the International Monetary Fund (IMF) amounted to USD 157 million (in March 2023, disbursements amounted to USD 639 million).

As of April 1, 2024, the volume of international reserves amounted to USD 43.8 billion, which provides financing for imports in the future period of 5.7 months.

As the Ukrainian News agency earlier reported, the current account deficit of the balance of payments in 2023 amounted to USD 9.8 billion (5.5% of GDP) compared to a surplus of USD 8.0 billion (5.0% of GDP) in 2022.

In 2023, the consolidated balance of payments was formed with a surplus of USD 9.5 billion (in 2022, the deficit was USD 2.9 billion).

The balance of payments current account surplus was USD 8.6 billion (5.8% of GDP) in 2022, compared with a deficit of USD 3.9 billion (1.9% of GDP) in 2021.

In general, for 2022, the consolidated balance of payments was formed with a deficit of USD 2.9 billion (in 2021, the surplus was USD 487 million).