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Economy 2019-04-15T04:56:00+03:00
Ukrainian news
Ukraine's Current-Account Deficit Makes USD 3.8 Billion In 2017

Ukraine's Current-Account Deficit Makes USD 3.8 Billion In 2017

In 2017, current-account deficit of Ukraine's balance of payments made USD 3.8 billion in 2017.

Press service of the National Bank of Ukraine announced this in a statement, the Ukrainian News Agency reports.

This was the third year in a row when the Ukraine's balance of payments was offset with surplus.

In 2017, the surplus of the balance of payments rose significantly over 2016 from USD 1.3 billion to USD 2.6 billion (according to preliminary data).

In 2017, the current account deficit made USD 3.8 billion and almost corresponded to the level of the previous year (USD 3.5 billion), despite negative impact of termination of trade with uncontrolled territories and lower crop harvest results.

However, expansion of the merchandise deficit, which was a result of the aforementioned factors, as well as further increase in investment imports was partially compensated with sustainable growth in private remittances and exportation of services.

Commodity exports rose by 19% to USD 39.9 billion.

In 2017, the most considerable growth was shown by exportation of Ukrainian products to the European Union (32%).

As a result, the EU countries became the largest trade partner of Ukraine and their share in the total commodity exports made 35.4% as against 31.9% in 2016.

At the same time, despite the growth of commodity exports to Russia, the share in the total volume of exported goods decreased to 8.5% as against 9.1% in 2016.

Commodity imports rose by 21% to USD 49 billion in 2017.

Thanks to the surplus of the consolidated balance of payments and receipt of another tranche from the International Monetary Fund (IMF) in April 2017, Ukraine's international reserves rose by 21% to USD 18.8 billion or 3.6 months of future imports as at late 2017.

As Ukrainian News Agency earlier reported, there was a USD 1.3 billion surplus of the consolidated balance of payments and a USD 3.4 billion deficit of the current account of the balance of payment (current transactions) in 2016.

The consolidated balance surplus together with the receipt of the third tranche from the International Monetary Fund (IMF) in the amount of USD 1 billion were responsible for the growth of international reserves to USD 15.5 billion, what ensures financing of future import operations for 3.4 months.

The current account deficit grew on the back of shrinkage in commodity export and recovery of the import growth.

In 2016, exports fell 5.2% to USD 33.6 billion.

Commodity imports grew 3.8% to USD 40.4 billion.

In 2016, export of food products increased 5.4%.

Exports of other commodity groups fell as the pricing environment on the world primary markets was adverse, especially in the first half-year, and the Russian Federation raised trade barriers.

Exports of non-/ferrous metal decreased 11.6%, of mineral commodities 10.5%, of machine-building products 17.8% and of chemical products 24.8%.

In 2016, net capital receipts on the financial account (net borrowings) soared to USD 4.6 billion from USD 582 million in 2015.

The net inflow on the private sector transactions determined the financial account dynamics.

Net payments of the public sector were USD 0.8 billion, chiefly due to the return of funds under the central bank's swap transactions.

The net inflow of foreign direct investment in 2016 rose to USD 3.4 billion (USD 3.0 billion in 2015).

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