Ukraine had balance of payments surplus of $7.8 bln in H1 compared with deficit a year earlier

MOSCOW. Aug 4 (Interfax) - Ukraine had a consolidated balance of payments surplus of $7.79 billion in H1 2023, compared with a deficit of $8.1 billion in H1 2022, Ukrainian media reported, citing the National Bank.

There was a surplus of $970 million in June 2023 but a deficit of $2.1 billion in June 2022.

There was a current account surplus for the fourth straight month in June, this time $120 million, compared to a deficit of $163 million in June 2022.

There was a current account deficit in H1 of $1.28 billion, compared with a surplus of $2.9 billion a year previously. The H1 2023 deficit would have been $7.3 billion without the reinvestment of income and donor aid from international partners, compared with a surplus of $650 million a year previously.

A trade deficit in June was offset by incoming private remittances and a grant from international partners.

Merchandise exports fell 7.5% year-on-year in June to $2.71 billion while imports grew 5.9% to $5.11 billion. Exports fell 8.5% compared with the previous month, and imports grew 4%.

The services trade deficit narrowed to $426 million, from $1.2 billion in June last year. Services exports grew by 21%, while imports fell 22.4%. The exports grew mainly due to transport services, up 50%, and other business services, up 35.8%, as well as a slight increase in computer services, by 1.6%.

Private remittances from abroad fell 14.6% in June to $917 million. They fell 12.3% in H1 2023.

Net lending to the rest of the world - the total balance of the current account and capital account - was $128 million in June this year while there was net borrowing of $153 million in June 2022. Net borrowing was $1.2 billion in H1 2023 compared with net lending of $3 billion a year previously.

Net financial account inflow amounted to $841 million in June 2023 while there was net outflow of $1.9 billion in June 2023; and inflow of $9 billion in H1 2023, compared to outflow of $11.1 billion in H1 2022.

Net incoming foreign direct investment was estimated at $189 million in June 2023 and $174 million in June 2022. Net incoming FDI was estimated at $1.8 billion in H1 2023, compared with outflow of $291 million in H1 2022.