According preliminary data in June 2017, the current account deficit stood at USD 518 million versus the current account surplus of USD 88 million in June 2016. The current account deficit reflected larger external goods and services trade deficit and a widening of the primary income account deficit, in particular due to the payment of dividends (In April 2017, the NBU allowed the repatriation of dividends accrued for both 2014-2015 and 2016 and simplified the rules for repatriating dividends).

Overall, the current account deficit was recorded at USD 1.6 billion in H1 2017, exceeding the respective figure for the same period in 2016 by UAH 0.6 billion. 

In June 2017, merchandise exports increased by 13.6% yoy (in May 2017 – by 22.5% yoy). However, in monthly terms, merchandise exports declined by 5.3%, primarily reflecting a seasonal decline in grain exports. In June, merchandise exports increased in annual terms across all commodity groups.  In particular, exports of foods grew by 10.7%, export of ferrous and non-ferrous metals increased by 15.1%; mineral products were up by 48.5%, whereas export of machinery rose by 4.4%.

In H1 2017, merchandise exports increased by 24.8%, compared with a 11.9% decline in exports a year ago. EU countries have retained their position as Ukraine’s largest trading partner, with their share in total exports reaching 34.8%.

In spite of a slowdown, the growth in merchandise imports outpaced exports  – by 30.1% yoy (in May 2017  – by 41.1%). Despite a decline in imports compared with May, energy import growth remained robust (79.1%) due to last year’s low comparison base.  Non-energy imports rose by 20.5% yoy, driven by an increase in machinery (by 41.3% yoy), chemical (by 24.1% yoy), food (by 12.4% yoy) and metallurgical imports (by 36.1%).

In H1 2017, merchandise imports increased by 24.3%, compared with a 5.7% decline in imports a year ago. The share of EU countries in total imports was the largest, standing at 37.8%.

In June 2017, net financial account inflows ( USD 825 million) (versus USD 289 million in June 2016) were primarily generated by the private sector.    A further reduction in FX cash outside banks (by USD 553 million), the largest decrease since August 2016,  was the major contributor to the financial account surplus.

Net FDI inflows amounted to USD 630 million, with the banking sector being the major recipient of FDI in the form of debt-to-equity operations. The banking sector accounted for the bulk of the increase in FDI inflows (about USD 400 million).

Overall, in H1 2017, the financial account recorded net inflows of USD 2.6 billion, which almost doubled  compared to the same period of the previous year.

As a result, Ukraine’s BoP has recorded a surplus (USD 306 million) for third month in a row. In H1 2017, the overall balance of payments surplus stood at USD 1.0 billion.

Ukraine's international reserves stood at USD 18.0 billion as of 1 July 2017, covering 3.7 months of future imports.

See updated data for June 2017 under External Sector Statistics section.

See the Macroeconomic and Monetary Review (July 2017), for greater details on macroeconomic developments in June, which will be published on 31 July 2017.