Ukraine Faces Growing Trade Deficit with Key Importing Countries

by Roman Cheplyk
Tuesday, May 21, 2024
Ukraine Faces Growing Trade Deficit with Key Importing Countries

$8.5 Billion More in Imports Than Exports: Key Importing Countries Revealed

In the first four months of 2024, Ukraine imported $8.5 billion more in foreign goods than it exported. Leading the list of importing countries are China and the European Union (EU).

Export and Import Overview

Export Performance:

  • Value: Ukraine exported goods worth $13.5 billion, maintaining nearly the same level as the previous year.
  • Volume Increase: The physical volume of exports rose from 36 to 49 million tons, driven by significantly lower world prices.
  • Structural Changes: The export of ore has resumed, approaching pre-invasion levels.

Import Trends:

  • Value: Goods worth $21.9 billion were imported from January to April 2024, with imports in April alone amounting to $5.9 billion—27% higher than last year.
  • Trade Deficit: The overall trade deficit in goods reached $8.5 billion, an increase of $1.5 billion compared to the previous year.

Leading Import Countries

The majority of Ukraine's trade deficit is due to imports from two major economic regions:

  • European Union: $3.6 billion
  • People's Republic of China: $3.1 billion

These two regions account for almost 80% of the total value of imports exceeding Ukrainian exports.

Economic Implications

Experts from the Institute of Economic Research and Political Consultations (IED) and the State Statistics Service highlight the growing trade deficit as a concerning trend. The negative balance of trade in goods worsened by $557.9 million in the first three months of the current year compared to the same period in 2023.

This imbalance poses challenges for Ukraine's economic stability, necessitating measures to boost exports and manage import levels effectively.

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