Ukraine had $3.9 bln balance of payments surplus in Q1

MOSCOW. May 2 (Interfax) - Ukraine had a consolidated balance of payments surplus of $3.404 billion in March and $3.89 billion rubles in January-March 2023, Ukrainian media reported, citing the National Bank of Ukraine.

There was a deficit of $722 million in February 2023, $58 in March 2022 and $3.34 billion in January-March 2022.

The improvement in March this year is associated with a net outflow to the financial account of $2.97 billion, due to an inflow from public sector operations of $.3 billion, while in February of this year a net outflow of $0.38 billion was recorded, and in March last year net outflow of $1.47 billion.

There was a current account surplus of $426 million in March this year, down from $1.4 billion in March 2022, thanks to a grant from international partners. At the same time, a significant deficit for trade in goods and services persisted, due partly to the expenses of Ukrainian citizens abroad.

There was a current account deficit of $0.8 billion for Q1 2023 but a surplus of $2 billion in Q1 2022.

Merchandise exports grew 1.6-fold to $3.6 billion in March and imports grew 2.7-fold to $5.4 billion.

Net financial account inflows came to $4.6 billion in Q1 2023, compared with outflows of $5.4 billion a year previously; net incoming foreign direct investment was $543 million, compared with outflow of $577 million.

Net inflow of equity capital, excluding reinvestment of income, was $203 million for Q1 2023, and net borrowings on debt instruments - $76 million.

Ukraine's international reserves totaled $28.9 billion as of April 1, 2023, enough to finance 3.7 months of imports.