In January 2017, balance of payments current account was almost balanced, first of all, due to reduced deficit of trade in goods. The deficit made USD 26 million against USD 315 million in January 2016.
Exports of goods significantly increased during first month of the year, while imports of goods slowed down, although remained at high level.
Significant rise in exports of goods in January (to 52.7% y-o-y) is attributed to both low comparison base of last year and grown exports of main commodity groups. Increase in world prices for metals facilitated growth of exports of ferrous and non-ferrous metals (by 70.1% y-o-y). Considerable rise in supply of grains (by 66.4% y-o-y) caused growth of food exports by 55.4% that provided for total exports growth. Machinery exports also significantly increased (by 34.3% y-o-y). Instead, chemical exports dropped (by 8.7% y-o-y).
In January, rise in imports of goods slightly slowed down (to 31.6% pp compared to 36% pp in December). Lower prices brought to decline in food imports costs. Energy products’ import grew (by 67.8% y-o-y against 83.9% y-o-y in December), firstly, due to increased imports of natural gas for heating in vief of fall of temperature.
Exports of services by 16.2% y-o-y due to rise in gas transit to the European countries and increase of IT-services provided to nonresidents. Costs of imports also grew but slowly (14.4% y-o-y). Traditionally, “travel” items create largest contribution to this growth, imports of which increased by 10.5% y-o-y. In January, service trade balance was positive and made USD 155 million.
Net outflow of funds from financial account was observed in January in amount of USD 177 million, including USD 133 million from private sector. Such dynamics was attibuted mainly to paymenrs under banking sector liabilities, firstly, repayments of interbank loans (USD 302 million.)
Net outflow of debt capital of private sector made USD 590 million, including USD 246 million from the real sector.
FDI incomings in January made USD 12 million and were fully channedled to the real sector.
On January, deficit of the overall balance of payments made USD 202 million that caused shortfal of international reserves to USD 15.4 billion or 3.4 months of future imports.
See updated data of January 2017 in section External Sector Statistics.
For details on macroeconomic developments in January, see the Macroeconomic and Monetary Review (February 2017).