3 Oct 2022 16:07

Ukraine had balance of payments surplus of $3.2 bln in Aug due to international grants

MOSCOW. Oct 3 (Interfax) - Ukraine had a consolidated balance of payments surplus of $3.2 billion in August 2022, compared with a surplus of $126 million in the same month of 2021, the National Bank of Ukraine said in information.

Ukraine had a current account surplus of $2 billion in August 2022, but a deficit of $36 million in August 2021.

"The surplus was formed due to high secondary income due to grants received from international partners and a primary income surplus due to a reduction of investment income payments. For eight months of 2022, the current account surplus amounted to $6.7 billion while in January-August 2021, there was a deficit of $714 million. Excluding reinvested income and grants from international partners, the deficit amounted to $1.2 billion, while for the eight months of 2021, a surplus of $4 billion was recorded," the National Bank said.

Merchandise exports and imports fell 47.4% and 22.1%, respectively, year-on-year but grew 16% and 1.7% month-on-month.

The drop in exports to $3.1 billion was driven by a 78.3% decrease in ferrous and nonferrous metals, and by reductions of 63.9% for chemical good, and 64.2% for mineral products, including ores.

Imports fell to $4.8 billion, with drops for machinery and equipment - 31.4%, and ferrous and nonferrous metals - 35.8%.

Services exports fell 22.6% year-on-year and services imports fell 41.2%.

There was a primary incomes surplus of $818 million in August 2022 compared with a deficit of $452 million in August 2021.

Net lending to the rest of the world - the total balance of the current account and capital account - was $2 billion in August 2022 compared with $33 million in August 2021.

Net financial account inflow was $1.2 billion, compared with $93 million a year previously, due to private sector inflow, while there was net government sector inflow of $1.86 billion, compared with $351 million outflow.

Net incoming foreign direct investment fell to $116 million in August this year, from $892 million in August 2021.

The banking system's external portfolio and other investments position decreased by a net $738 million due to a decrease of $747 million for currency and deposits, $41 million for the external borrowing position, $10 million for Eurobond payments and $40 million for net purchases of nonresident securities.

The real sector's external position, not including foreign direct investment, rose $1.5 billion as net external debt on trade credits grew $935 million and the net external position on trade credits rose $685 million.

Ukraine's international reserves were $25.4 billion as of September 1, enough to cover four months of imports.

Ukraine had a consolidated balance of payments deficit of $487 million in 2021, down 75% from 2020. There was a current account deficit of $2.1 billion in 2021, compared with a surplus of $5.3 billion in 2020.