Ukraine had $6.4 bln consolidated balance of payments surplus in March
MOSCOW. May 8 (Interfax) - Ukraine had a consolidated balance of payments surplus of $6.4 billion or 16% of GDP in March 2024 compared with a surplus of $3.4 billion in March 2023, Ukrainian media reported, quoting the National Bank of Ukraine.
There was a current account deficit of $1.6 billion in March 2024 compared with a surplus of $14 million a year previously.
"The deficit arose primarily from a reduction in grants received from international partners. The merchandise trade deficit also widened exports decreased and imports increased," the regulator said.
The deficit excluding reinvested income and grants from international partners was $1.7 billion, compared to $0.8 billion in March last year. In Q1 2024 as a whole, the deficit widened $0.4 billion to $2.2 billion, but, excluding reinvested income and grants from international partners, it narrowed to $3 billion from $4.3 billion.
The NBU said merchandise and services exports fell 13.6% year-on-year and 6% compared to February 2024 to $3.2 billion, while imports increased by 3.8% and 18.5%, respectively, to $5.7 billion.
Merchandise exports fell year-on-year due almost entirely to a decrease in supplies food products by 18.6%, in particular grains by 30%, while exports of oilseeds fell 31.7% and oils and fats 8.9%.
In addition, machinery and equipment exports fell 30.9% YoY and 16.7% MoM, timber and its products fell 30.7% YoY but rose 1% MoM, metallurgical products fell 6.7% and 8.3%, respectively, industrial goods fell 22.2% and grew 7.2%, and chemical industry products fell 8.6% and grew 16%.
Exports of food products increased 6.3% YoY and mineral products 60%, due to metal ore exports.
The NBU said that in nominal terms the drop in merchandise exports in March was driven by a 30.5% reduction in exports to the EU, its share of exports decreasing from 60.6% to 48.8%; exports to Asian countries fell 1.6%, their share decreasing from 27% to 30.8%.
Exports to African countries increased 50%, their share rising from 4.5% to 7.9%; and exports to CIS countries rose 8.3%, their share increasing from 3.6% to 4.5%.
Private remittances fell 16.5% to $0.9 billion in March. They fell 8.7% in Q1, including net wages by 20.3%, while private transfers increased by 19.2%.
Net borrowing from the rest of the world - the combined current and capital transactions account - was $1.6 billion in March 2024 compared with net lending of $26 million in March 2023.
Net borrowing from the rest of the world was $2.1 billion in Q1 2024 compared with net lending of $1.7 billion in Q1 2023.
Net incoming foreign direct investment was $258 million in March 2024 and $388 million in March 2023. This included reinvestment of banking sector income amounting to $79 million, net inflow of equity capital excluding reinvestment of income amounting to $69 million and net investment through debt instruments of $109 million.
Net incoming FDI was $572 million in Q1 2024, including reinvestment of banking sector income amounting to $243 million, while for the same period last year it was $1.1 billion, including reinvestment of income - $1.1 billion.
Cash outside the banking system was estimated at $4.1 billion in Q1 2024, up from $3.3 billion in Q1 2023.