Ukraine foreign account balance remains stable

The National Bank of Ukraine (NBU) has published the draft payment balance for October and accrued total for the last 10 months of 2013, the Information-Analytical Bulletin of the cabinet of Ministers of Ukraine reports.

According to NBU, the deficit of current account in October was almost unchanged from October 2012 (1.9 billion USD). In general, during the first 10 months of 2013, it was minus 12.3 billion USD (from minus 11.4 billion USD in 2012).

Analysts of the Ministry of Economic Development and Trade note some positive trends in foreign trade, which began to show in the reporting month. October exports grew to 5.7 billion USD from 5.3 billion USD in September 2013.

Also, compared to last October, agricultural exports fell by 9%, due to lower grain prices on international markets. Analysts explain the situation by a good grain harvest in almost any major crop producing country.

Analysts also noted a significant reduction of exports of machine building products. In October, the drop was 27.8%. However, this is due to a halving delivery of railcars to Russia (due to an oversaturated market).

Since beginning of 2013, the surplus of capital account and financial transactions has reached 13.4 billion USD (in the 10 months of 2012, the surplus was 8.6 billion USD). The balance of foreign equity investment remains positive. The net surplus was 1.9 billion USD over the period. 

Due to positive balance of capital account and financial transactions, the consolidated payment balance (in the 10 months of 2013) remains positive – plus 1.1 billion USD. During the same period of the last year, it was negative – minus 2.8 billion USD.

Analyzing the economic situation, the analysts note that government, despite the global economic crisis, Ukraine can ensure a surplus of consolidated payment balance.