Ukraine had balance of payments surplus of $10.4 bln in 7M compared with deficit a year earlier

MOSCOW. Sept 4 (Interfax) - Ukraine had a consolidated balance of payments surplus of $10.37 billion in January-July 2023, compared with a deficit of $8.4 billion in 7M 2022, Ukrainian media reported, citing National Bank of Ukraine statement.

There was a surplus of $2.6 billion in July 2023 but a deficit of $300 million in July 2022.

There was a surplus of $970 million in June 2023.

There was a current account deficit of $780 million in July following four straight months of surplus, and a surplus of $1.4 billion a year previously. "The deficit arose due to a wider deficit for trade in goods and services and lower volumes of donor assistance from international partners," according to the statement.

There was a current account deficit in 7M of $1.95 billion, compared with a surplus of $4.3 billion a year previously. The deficit would have been $9.1 billion without the reinvestment of income and donor aid from international partners, compared with $743 million a year previously.

Merchandise exports fell 17.1% year-on-year in July while imports grew 10.2%. Exports fell 21.1% compared with the previous month, and imports fell 1.5%.

Merchandise exports amounted to $2.2 billion. Food exports fell 8.7% compared to July last year and 20.5% compared to June 2023, mineral products including ores fell 38.4% and 11%, respectively, and exports of ferrous and non-ferrous metals 22.9% and 25.5%.

Machinery and equipment exports fell by 46.3% and 52.7%, timber and timber product exports 27.2% and 16.6% and chemical products 24.2% and 16.8%, while industrial goods exports were level with a year previously, when they fell 15.5%.

Exports fell in nominal terms in July due to a drop in shipments to EU countries by $478 million, or 24.9%; the share of EU countries decreased from 71.7% to 64.9%. Exports to the Americas fell by $78 million, or 66.1%, and their share from 4.4% to 1.8%. Exports to the CIS fell $25 million, or 16.8%, their share remaining at 5.6%. Exports to Africa increased by $51 million or 2.2-fold, their share of exports increasing from 1.5% to 4.1%, and exports to Asia rose by $15 million or 3.7%, their share increasing from 15.1% to 18.8%.

Merchandise imports amounted to $5.1 billion. Energy imports fell 48.7% year-on-year and 13% compared with June, while non-energy imports increased 30.1% and were level with June.

The services trade deficit halved to $614 million. Services exports grew 12.6% whole imports fell 18.3%.

Net borrowing from the rest of the world - the total balance of the current account and capital account - was $764 million in July this year while there was net lending of $1.4 billion in July 2022.

Net borrowing from the rest of the world was $1.9 billion in 7M 2023 compared with lending of $4.4 billion a year previously.

Net incoming foreign direct investment was estimated at $403 million in July 2023 and $150 million in July 2022 and included reinvestment of banking sector income - $194 million, net equity capital inflow excluding reinvestment of income - $114 million and net borrowing with debt instruments - $94 million.

Net incoming FDI was estimated at $2.2 billion in 7M 2023, and included reinvestment of income - $1.6 billion, while there was net outflow of $141 million in 7M 2022, including reinvestment - $415 million.

Net inflow of equity capital excluding reinvestment of income in 7M amounted to $399 million, compared with $185 million a year earlier, and net borrowing with debt instruments was $371 million, compared with net redemption 0f $658 million.