The trade deficit in goods in 2023 was significant and reached $26.4 billion, due to problems in logistics and defense needs, the Ministry of Economy reported, UNN writes.
Details
Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, noted that "last year Ukraine experienced a significant trade deficit in goods worth $26.4 billion." "It was caused by two key factors - problems in logistics and defense needs in 2023. Therefore, in 2024, the government will continue to work to strengthen export logistics with air defense systems and the search for new ways to export goods and services. It will also facilitate the localization of defense industry enterprises in Ukraine," the Ministry of Economy said.
At the end of 2023, Ukraine's exports increased to almost 100 million tons of goods. This is 112 thousand tons more than in 2022. However, in terms of value, the figure fell by 18.7% or $35.8 billion, the ministry said.
In contrast to exports, imports in monetary terms increased last year and amounted to $62.2 billion, the Economy Ministry reported. Most of all, Ukraine imported fuel - $7.8 billion, "miscellaneous" (what is not advertised) - $3.7 billion, medicines - $1.7 billion, and UAVs - $681 million. Other top imports include cars, fertilizers and plant protection products.
As noted, despite the overall decline in exports of Ukrainian goods, positive trends are observed in the furniture market. Last year, compared to 2022, volumes increased by 11%, and cash receipts by 7%. Also last year, Ukraine exported 1.7 times more sugar.
However, the Ukrainian economy lost revenue in 2023 for most export items. For example, the largest export commodity by volume, corn, while growing by 5% in physical terms, brought in 16.8% less in money than a year earlier. Last year, Ukraine exported 26.2 million tons of this grain crop.
"Last year, export revenues reached one of the lowest levels in the last decade. This is an expected and objective result that was the result of logistics problems. We are now slowly solving them. We have launched an alternative corridor in the Black Sea, are developing river transportation on the Danube, and are negotiating with the Polish side to unblock the border. Thanks to this, in December, for the first time in the second half of the year, we exported more than USD 3 billion. Also in December, for the first time since March, we exported more than 10 million tons," Svyrydenko said.
According to her, the joint efforts of the Ukrainian government and international partners are also boosting exports by sea. In December, compared to November, this figure increased by one third and amounted to 7 million 340 thousand tons of cargo.
Overall, in 2023, Ukraine exported almost 1 million tons more by sea than last year. In addition to grain, other goods, including metal, are exported via this route. After the launch of the alternative maritime corridor, exports of this group of products increased. In December, exports of semi-finished products increased by 40% and flat products by 45.3% compared to November.
Instead, exports by road continue to decline. The main reason is the Polish border blockade. In December, the figure fell by 18.3% compared to November. However, the year-to-date losses are insignificant - only -0.7%. Negotiations are ongoing at all levels to solve this problem.
At the same time, Ukraine has increased its exports by containerized transportation - +86% by rail and +36% by road. This is now the most efficient mode of transportation for value-added products.