Ukraine posts deficit of $1.3 bln in consolidated payment balance in April - NBU

MOSCOW. June 24 (Interfax) - Ukraine posted a reduced deficit of $1.3 billion in its consolidated payment balance in April, around 0.7% of GDP, after a surplus of $6.4 billion in March, Ukrainian media reported, citing data from the National Bank of Ukraine (NBU).

The balance of payments was positive at $1.4 billion in April 2023.

The current account deficit totaled $1.5 billion in April 2024 against a surplus of $190 million the previous year.

"The deficit formed owing to the expanding negative balance of trade in goods and the lack of grant assistance from international partners," the NBU said.

Excluding reinvested income and grants from international partners, the current account deficit totaled $1.4 billion against $0.8 billion in April last year.

The overall current account deficit increased by $2.1 billion year-on-year to $3.7 billion in January-April 2024, and it decreased to $4.4 billion from $5.1 billion when excluding reinvested income and grants.

NBU data indicate that exported goods grew 13.8% year-on-year to $3.3 billion and imported goods rose 23.4% year-on-year to $5.7 billion in April.

Exports increased primarily owing to food products, which grew 24.4%, including grain crops (29.1%), foodstuffs (1.6-fold), and oilseeds (39.3%), as well as mineral products (22.5%), chemical products (12.4%), and industrial goods (7.1%). Non-energy imports grew 29.5%, while energy imports decreased 8.4%. Imports of ferrous and non-ferrous metals surged 54%, mechanical engineering products 45.3%, industrial goods 36.4%, wood and wood products 35.3%, food products 25.8%, and chemical industry products 25.5%.

In nominal terms, exports of goods in April increased to all regions globally except the Americas, primarily to Asian countries by $140 million, or 16.3%, which increased their share from 29.4% to 30%, and Africa by $110 million, or 1.7-fold, rising in share from 5.3% to 7.9%. Imports from the EU countries increased markedly by $534 million, or 23.5%, and the share remained nearly unchanged at 49.3%, as well as Asia by $529 million, or 37.1%, with an increased share to 34.3% from 30.9%. The highest growth rate was demonstrated by imports from the Americas by $110 million, or 42.6%, increasing the share from 5.6% to 6.5%, as well as from Africa by $62 million, 2.1-fold, raising the share from 1.2% to 2.1%.

Exports of services increased 11.5%, while imports decreased 0.8%.

The surplus of the primary income balance was $0.51 billion, at the level of April last year. Meantime, both receipts under the item "salaries" (13.9%) and payments on investment income (27.8%) decreased. The surplus of the secondary income balance decreased by $1.3 billion to $0.8 billion.

NBU data indicate that the volume of private remittances declined 5.7% to $0.9 billion in April, and 8% in January-April 2024.

Net borrowing from the outside world, namely the combined balance of the current account and capital account, totaled $1.5 billion in April against net lending of $0.21 billion in April 2023. Net borrowing from the outside world totaled $3.6 billion in the first four months of the year versus net lending of $1.5 billion in the corresponding period last year.

Net inflow for the financial account totaled $0.19 billion in April against $1.2 billion last year, net inflow for public sector operations totaled $0.9 billion versus $1.5 billion, respectively, and net inflow for foreign direct investment totaled $218 million against $536 million, respectively. The NBU estimated the overall net inflow of FDI at $790 million in January-April 2024 against $1.7 billion for the corresponding period last year.