The balance of payments of Ukraine in July brought a deficit of $170 million

The balance of payments deficit of Ukraine in July 2018 and $170 million Is 40.4% better than the figure for the corresponding period last year, soobschaetcya on Friday, August 31.

Thanks to a surplus in February and April-June in General, during seven months of the current year the balance of payments was reduced with a surplus of $137 million, which is 5.6 times less than in the same period of 2017.

According to the NBU, the current account deficit in July of 2018, totaled $1.1 billion, which is 8.8 times higher than in the June 2018 and 2.7 times – July-2017.

“First of all it is connected with a significant growth in imports of goods compared to exports,” says the Central Bank.

According to the NBU, exports of goods in July this year increased by July of last year by 12.6% to $3.29 billion, while imports – by 24.9%, to $5.02 billion, the Growth of services exports amounted to 9.9% to $1.37 billion, while imports of 10.6%, to $3.58 billion

“The overall export growth was constrained by logistics problems in the Azov sea, causing the growth of exports of metallurgical products slowed down (to 19.9% yoy),” said the national Bank.

Outpacing import growth regulator explained high consumer and investment demand against the background of significantly increased purchases of engineering products (16% y/y), food products (30,8% yoy) and industrial products (28.1 per cent). “The high rate of continued growth in energy imports. Due to the continued growth of the world prices for oil and natural gas value of imports of energy resources rose by 32.6%,” – said the NBU.

In General, the seven months exports of goods grew by 11.8% to $24.5 billion, while imports – by 15.6%, to $of 30.51 billion, exports of services – by 10.1%, to $8.59 bn, import – by 8.3%, to $8,09 billion.

As a result, over January-July 2018 the current account deficit increased 2.7 times over the same period of 2017 to $1.72 billion

Net capital inflow in the financial account in July-2018 jumped to 0.9 billion with $0.15 billion in the previous month and just $0.11 billion in July-2017. The national Bank indicates that it was secured by the operations of the private sector, while net foreign liabilities of the public sector declined by $0.1 billion due primarily to the operations of the government with government bonds.

“The net income of the real sector ($1.1 billion) was provided mainly through debt instruments – trade and long-term loans,” says the regulator.

According to him, foreign direct investment (FDI) in July 2018, compared with June, when two-thirds of FDI occurred in the debt restructuring of the banking sector in the equity capital, decreased by 3.3% to $142 million

In General, during seven months of 2018 FDI amounted to $1.32 billion, of which almost a third of the capitalization of the debt of the banking sector.

In General, in January-July of this year, net inflows on the financial account has reached $1.82 billion, or 26.6% more than in January-July of last year.

We will remind, in June the surplus of Ukraine’s balance of payments decreased 11.6% to $23 million In annual terms, the surplus fell 13.3%.

According to the national Bank, growth in gross domestic product of Ukraine in the second quarter of 2018, accelerated slightly to 3.2% from 3.1% in the first quarter.

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