The foreign trade deficit in goods in August decreased by a third compared to July

The negative balance of Ukraine’s foreign trade in August 2022 decreased by 32.9% compared to July, to $1.053 billion. The Ministry of Economy reports about it.

Exports of goods from Ukraine over the past month increased by 13.9% compared to July, to $3.363 billion, while imports decreased by 2.3%, to $4.416 billion.

Ukrainian export increased by 25% m/m and amounted to 7.29 million tons. In monetary terms, exporters received $3.36 billion in August, which is $411 million more than in July.

The Ministry of Economy associates the growth of exports with the partial unblocking of the Velyka Odesa’s ports. As a result, shipping by sea increased by 85% m/m in August 2022 and reached almost 2.9 million tons. More than 3 million tons of Ukrainian goods were exported by rail in August, 1.36 million tons – by road. In August, exporters received the largest revenue from goods transported by road – $1.48 billion. The cost of sea cargo in August amounted to $995 million, rail cargo – $788 million.

According to the First Vice Prime Minister – Minister of Economy Yulia Sviridenko, Ukraine relies on the export model of economic growth. According to her, before the full-scale invasion of the Russian Federation, the share of exports in Ukraine’s GDP was 35%. Now the government and the Ministry of Economy’s goal is to increase it to 50%, while 75% of exports should be finished goods and services.

According to the Ministry of Economy, the volume of Ukrainian steel products and raw materials exports is falling due to Russian occupation and destruction in the southeastern regions. In particular, in August 2022, iron ore exports fell to 1.4 million tons (up to $172 million in monetary terms) compared to July.

As GMK Center reported earlier, Ukraine, according to customs statistics, exported 1.56 million tons of iron ore in July, which is 57.1% less y/y. For 7 months of 2022, Ukrainian miners sent 18.57 million tons of iron ore abroad, reducing exports by 28.8% compared to the same period in 2021.