Business news from Ukraine

UKRAINE’S CONSOLIDATED BALANCE OF PAYMENTS POSTS $783 MLN SURPLUS IN APRIL

The surplus of Ukraine’s consolidated balance amounted to $783 million in April 2022, while in April 2021 the surplus amounted to $795 million, the National Bank of Ukraine (NBU) reported on its website.
According to its data, the current account surplus in April 2022 amounted to $1.1 billion, which is 23.4 times more than the surplus in April 2021 ($47 million).
The NBU also reported that exports and imports of goods for the month decreased by 51% and 45.7%, respectively.
The main factor behind the decline in exports to $2.4 billion was a 52.8% reduction in food exports, due to a decrease in grain exports (by 64.8%). There was also a decrease in exports of ferrous and non-ferrous metals – by 71.3%, chemical industry products – by 45.7%, wood and wood products – by 2.8%, mineral products (including ores) – by 41.9% and engineering products – by 35%.
The volume of imports of goods for the specified period decreased to $2.7 billion, including non-energy imports – by 51.1%. In particular, imports of industrial products fell by 18.2%, engineering products by 68.9%, food products by 41.4%, ferrous and non-ferrous metals by 72.4%, chemical industry products by 61.6%, and wood and wood products by 75.3%.
At the same time, energy imports decreased by 17.2%.
According to the National Bank, in April 2022 there was a $785 million trade in services deficit compared to a $347 million surplus in April 2021. The NBU explained this by the growth of refugees abroad, whose expenses exceeded those of April 2021 by 3.7 times. At the same time, the export of services fell by 41.9%.
The surplus in the balance of primary income in April 2022 amounted to $783 million (in April 2021, the deficit was $491 million). Receipts under remuneration decreased by 6.1%, and payments on income from investments by 81.2%.
Net lending of the outside world (the total balance of the current and capital account) in April this year amounted to $1.1 billion versus $48 million in April of the previous year.
The net outflow from the financial account was $1.9 billion (versus $747 million in April 2021), driven by outflows from private sector operations.
Net inflow from public sector operations amounted to $818 million (in April 2021, an outflow of $1 billion).
The NBU estimated the net inflow of foreign direct investment at $85 million, while in April of the previous year this figure was $626 million.
According to the regulator, the net increase in the external position of the country’s banking system in operations with portfolio and other investments amounted to $454 million. It was due to an increase in the external position in the currency and deposits item by $504 million.
The external position of the real sector (excluding foreign direct investment) in April 2022 increased by $2.5 billion. It was due to an increase in net external debt on trade loans by $1.5 billion, an increase in the volume of cash outside banks by $1 billion (again refugee account).
As of April 1, 2022, the volume of international reserves amounted to $26.9 billion, which provides import financing for 3.9 months.

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SURPLUS OF UKRAINE’S CONSOLIDATED BALANCE OF PAYMENT IN APR REACHES $716 MLN

The surplus of Ukraine’s consolidated balance of payment in April 2020 reached $716 million, while in April 2019 the deficit was $46 million, according to preliminary data posted by the National Bank of Ukraine (NBU) on Friday. According to the report, the surplus of the current account of the balance of payment last month was $1.4 billion, and in April 2019 the deficit was $92 million.
The volume of exports of goods in April 2020 decreased by 4%(in March 2020 by 3.5%), to $3.6 billion. The decline was due to a decrease in the export of wood and wood products by 19.6% (by 11.7%), ferrous and non-ferrous metals – by 18.1% (by 13.1%) and engineering products – by 8.3% (by 13.3%), as well as a drop in exports of industrial products and chemical products by 24.2% and 2.5% respectively, which a month earlier had increased by 2.3% and 16.7%.
At the same time, in April, export of food products continued to grow – by 6.6% (by 2.3%) and mineral products – by 12.1% (by 3.5%).
In January-April 2020, exports to Asian countries increased in money terms (by $796 million, or 16.9%), while exports to the EU and the Russian Federation decreased by $555 million (9.7%) and $111 million (13.6%) respectively. Thus, the share of exports to Asian countries of total exports increased to 37% (from 31.3% for the same period in 2019), and to the EU and Russia decreased to 34.6% (from 38%) and to 4.7% (from 5.4%).
In April 2020, import of goods decreased more significantly – by 28.4% (in March – by 6%), to $3.4 billion, including energy imports decreased by 33.4% (in March – by 11.5%), and non-energy – by 28.6% (in March – by 4.8%).
Last month, in particular, imports of engineering products decreased by 28.7% (in March – by 2.6%), including cars by 33.4% (in March, it increased by 21.7%). In addition, exports of ferrous and non-ferrous metals decreased by 36.8% (in March – by 8.6%), industrial products by 23% (by 7.2%) and chemical products – by 17.5% (in March it grew by 2.1%).
At the same time, food imports continued to grow – by 2.1% after rapid growth in March by 20.9%.
According to the results of January-April 2020, imports from Russia (by $924 million, or 37.5%) and from the EU countries (by $314 million, or 4.5%) decreased the most in money terms, while Russia’s share of total imports decreased to 9.2% (from 13.2% according to the results of the corresponding period of 2019), and the EU increased to 40.8% (from 38.2%). At the same time, imports from Asian countries remained almost unchanged – it grew only by $34 million (or 0.8%), and its share of total imports – to 26.3% from 23.3%.
According to the report, the surplus in trade in services in April 2020 tripled to $555 million compared to April 2019, thanks to the higher rate of decline in imports of services (by half) compared to their exports (by 17.0%) due to the COVID-19 pandemic.
A decrease in imports of services occurred along with a 72.2% decrease in expenses of people traveling abroad and short-term migrants, as well as a decrease in transport and other business services by 31.3% and 41.2%, respectively.
At the same time, a decrease in the export of services was facilitated by a decrease in transport services (37.5%) and expenses of people traveling in Ukraine (95.7%), while the export of computer services continued to increase (by 21.3%).
According to the central bank, the surplus in the balance of primary income in April 2020 decreased by 10.4%, to $420 million compared to April a year earlier due to the predominance of a decrease in receipts from payroll (by $158 million) over payments on income from investments (by $120 million).
Net borrowing from the outside world (total current account balance and capital account) last month amounted to $1.4 billion, which is 93.4% less than in April 2019 ($91 million).

SURPLUS OF UKRAINE’S CONSOLIDATED BALANCE OF PAYMENTS IN JUNE TOTALS $1.2 BLN

Ukraine saw a $1.2 billion surplus of a consolidated balance of payments in June 2019 compared with a $750 million deficit in May, a $45 million deficit in April, a $652 million surplus in March 2019 and a $23 million surplus in June 2018.
“The surplus of the consolidated balance of payments amounted to $1.2 billion (it was $23 million in June 2018). This allowed us to simultaneously increase international reserves (by $1.1 billion) and pay off debt to the International Monetary Fund ($158 million),” the central bank said in a statement on its website.

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