Ukraine had $2.9 bln balance of payments deficit in 2022
MOSCOW. Feb 1 (Interfax) - Ukraine had a consolidated balance of payments deficit of $2.9 billion in 2022 compared with a surplus of $487 million in 2021, Ukrainian media reported, quoting the National Bank of Ukraine (NBU).
According to the NBU, in December, the balance of payments surplus was $528 million, which is 1.4 times higher than the $366 million from the same month in 2021.
The surplus in last year's balance of payments was $8.6 billion, or 5.8% of GDP versus a deficit of $3.9 billion the previous year.
Annual export of goods and services dropped by 29.9%, versus a growth of 34.3% the previous year.
The primary cause of the 35.1% drop in export volumes to $40.9 billion was attributed by the NBU to a 62.6% decrease in shipment volumes for ferrous and non-ferrous metals, a 47.8% drop in volumes of mineral products, including ores, a 47.4% decrease for chemical goods, and a 40.6% reduction in volumes for engineering products. There was also a 15.5% drop in food export volumes.
Imports during the same period decreased 20.3% to $55.6 billion, of which 23.2% were non-energy imports, and 8.9% were energy related.
In 2022, there was a services trade deficit of $9.1 billion, as compared to a $4 billion surplus in 2021. The export of services fell by 12.1%, and imports increased 1.8 times. The NBU explained this as being due to the increase in refugees, whose expenses increased by 3.2 times, to $20.2 billion.
Net lending to the rest of the world - the total balances of the current account and capital account - was $8.6 billion versus net borrowing of $3.9 billion a year earlier.
Net financial account inflow amounted to $11.5 billion, compared to $4.4 billion in 2021; public sector inflow was $13 billion, compared to an outflow of $1.2 billion in 2021, and foreign direct investment was $587 million, compared to $655 million the prior year.
According to the regulator, the net increase in the external position of the country's banking system in operations with portfolios and other investments amounted to $2.7 billion. This was due to an increase in the external position in the "currency and deposits" item by $1.8 billion and net purchases of non-resident securities by banks of $614 million.
As of January 1, 2023, the volume of international reserves amounted to $28.5 billion, which provides import financing for 3.4 months.
Ukraine had a 2021 consolidated balance of payments surplus of $487 million, which is 75% less than in 2020. The current account deficit of the balance of payments amounts to $2.1 billion, while in 2020 there was a surplus of $5.3 billion.