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Ukraine posts trade deficit of $8.97 billion in Jan-May

Published 07/14/2023, 08:59 AM
Updated 07/14/2023, 09:01 AM
© Reuters. FILE PHOTO-U.S. 100 dollar and Ukrainian 500 hryvnia banknotes are seen in this picture illustration taken in Kiev, Ukraine, October 31, 2016. REUTERS/Valentyn Ogirenko/Illustration/file photo

KYIV (Reuters) - Ukraine's trade deficit grew to $8.97 billion in the first five months of the year compared with a deficit of about $1 billion posted in the same period a year ago, the statistics service said on Friday.

It said in a statement that exports of goods were $16.45 billion from January to May, while imports were reached $25.42 billion in the first five months of 2023.

Analysts said that continued growth in imports was a sign of economic resilience during Russia's war on Ukraine as businesses were bringing in the necessary goods to continue operations.

The data showed that imports grew by about 24% from January to May and machine-building products and energy equipment were among the most popular items to bring into Ukraine.

However, Ukrainian exports continued to shrink, falling by 15.6% from January to May compared with the same period a year ago. The largest fall of 60.6% was in exports of metals and steel products as Ukrainian Black Sea ports - the main shipping routes for steel exports before the war - have continued to be blocked following Russia's invasion.

© Reuters. FILE PHOTO-U.S. 100 dollar and Ukrainian 500 hryvnia banknotes are seen in this picture illustration taken in Kiev, Ukraine, October 31, 2016. REUTERS/Valentyn Ogirenko/Illustration/file photo

Ukraine, a major global grain producer, managed to continue its grain exports thanks to a deal brokered by the United Nations and Turkey last year to help alleviate a global food crisis. The latest data showed that grain exports grew by 19.6% in January to May this year.

Russia has threatened to quit the grain deal, which expires on Monday, because several demands to dispatch its own grain and fertilizer abroad have not been met.

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