Ukraine: Balance of Payments
(preliminary data) November 2010. Report by National Bank of Ukraine
5 January 2010 |
In November of 2010 the overall
balance of payments ended up with deficit
of USD 145 million. From the beginning of
the year the positive balance amounted to
USD 5.8 billion (compared to USD 13.5
billion in January-November of 2009).
The current account was formed with
deficit of USD 508 million (compared to USD
814 million in October). The improvement of
current account was caused by the increase in
export of ferrous metals, sunflower oil and
sunflower goods. But the high level of energy and non-energy goods’ import restrained the
further shortage of the deficit. For the 11 months of 2010 current account deficit reached USD
1.6 billion (compared to USD 1.1 billion at the same period of 2009).
Cumulative (for the moving year)
current account deficit increased to USD 2.3
billion (approximately 1.7% of GDP).
Merchandise export in November
grew by 7.2% on m-o-m basis and reached
USD 5.2 billion, seasonally adjusted export
increased by 16%. Values of export
increased by 28.2% on y-o-y basis. The
highest growth was shown by export of
metallurgical products (40.2% y-o-y), mostly
due to the increase in prices. The export of
sunflower oil and fat increased by 2.1 times thanks to the good crop of sunflower in the current year. At the same time the export of corn
dropped substantially (to USD 107 millions), three times less than in November 2009, due to
the implementation of quotas by the Government. Export of mineral products and equipment
and machinery increased accordingly by 56.9% and 30.1% on y-o-y basis.
In January-November merchandise export made up USD 46.8 billion (29.3% higher than
at the same period of the previous year).
Merchandise import in November 2010 stayed at the level of October (USD 6.1
billion), seasonally adjusted import increased by 9.8%. The growth of seasonally adjusted
import was determined by non-energy import (increased by 11.6%).
Values of import increased by 35.5% on y-o-y basis. After the sharp drop in 2009,
the import of machinery and equipment started to recover with fast pace (75.5 % on y-o-y
basis). Import of metallurgical and agricultural products increased accordingly by 64.8% and
In January-November merchandise import made up USD 53.8 billion (35.7% higher
than at the same period of the previous year).
The surplus in trade of services in November stayed at the level of the previous month
(USD 324 million). In January-November 2010 the surplus in trade of services composed USD
4.4 billion compared to USD 2.3 billion at the same period of 2009.
The capital and financial
account in November 2010 was formed
with surplus of USD 363 million thanks
to long-term state guaranteed loans and
FDI inflows. At the same time the cash
holdings in other sectors of economy
continued its growth with fast pace.
From the beginning of the year
capital and financial account surplus
reached USD 7.4 billion compared to the
deficit of USD 12.4 billion at the same
period of 2009.
The cumulative (for the moving year) surplus of capital and financial account continued
to improve and reached USD 7.8 billion (USD 7.1 billion in October).
FDI inflows in November reached the highest level of 2011 (USD 725 million) due to
the investment into the banking sector of economy (77.8% from total amount). From the
beginning of the year the net FDI inflows made up USD 4.8 billion (6.8% higher than the level
of the previous year), 41% of which were attracted by banking sector of economy (43% in
January-November of 2009).
The net flows on debt and bond operations stayed positive and amounted to USD 1.3
billion. The largest part of such inflows was formed thanks to the long-term state guaranteed
loans (USD 1.0 billion). For example, USD 568 million was attracted by state company for the
aims of Euro-2012.
Debt and bond operations of the banking sector of economy were almost balanced: the
negative balance made up to USD 89 million (rollover: 92% in November, 80% in October).
In general the net flows on debt and bond operations of private sector of economy in
January-November were positive and amounted to USD 650 million (compared to the deficit of
USD 8.4 billion at the same period of the previous year).
Net inflows of governmental sector of economy made up USD 179 million (compared to
USD 31 million in October).
Accumulation of foreign cash
holdings in other sectors of economy
remained high, namely USD 1.5 billion
(USD 1.7 billion in October). In January –
November of 2010 the amount of foreign
cash holdings in other sectors of economy
increased by USD 5.8 billion (32.9% less
compared to the same period of 2009).
The overall balance of payments
deficit was covered by reserve assets
which at 01.12.2010 amounted to USD
33.5 billion, that covers 5.1 months of
National Bank of Ukraine