Ukraine: Current account surplus recorded in Q2
Overview:
Some stabilisation in the hyrvnia and an increase in the level of foreign exchange reserves in Ukraine in the last few months have suggested that balance of payments data has started to improve. NBU data released for Q2 confirms this. The current account swung from a deficit in Q1 to a surplus in Q2. At the same time, although the capital account remained in deficit in Q2 there were signs of improvement here too. The situation is still less than ideal: foreign exchange reserves, for example, increased by less in Q2 than the amount of money received from the IMF in that quarter. However, indications are that things will continue to improve steadily and that Ukraine might again record an overall balance surplus (i.e. excluding Fund disbursements) although this is more likely next year than this.