Ukraine's exports plummet to 20-year low: Ministry of Economy highlights causes
Exports from Ukraine have dropped to the lowest level since 2005 (Vitalii Nosach, RBC-Ukraine)
Goods export from Ukraine for the year 2023 decreased by 18.7% to $35.8 billion. Export volumes amounted to nearly 100 million tons of goods, according to the press service of the Ministry of Economy.
"Income from exports last year reached one of the lowest points in the past decade. This is an expected and objective result that stemmed from logistical problems. Currently, we are slowly resolving them. We've launched an alternative corridor in the Black Sea, developing river transportation along the Danube, and ongoing negotiations with the Polish side to unlock the border," said First Deputy Prime Minister and Minister of Economy of Ukraine, Yulia Svyrydenko.
Overall, in 2023, Ukraine exported almost 1 million tons more via sea compared to the previous year. Besides grains, this route is used for exporting other goods, including metal. After the launch of the alternative sea corridor, the export of products from this group has increased.
However, exports via automobile transportation continue to decline. The main reason is the Polish border blockage. In December, compared to November, the indicator dropped by 18.3%. But the losses for the year are insignificant, just -0.7%.
Record trade deficit
In contrast to exports, imports in monetary terms grew by 12.5% last year, reaching $62.2 billion. Ukraine imported fuel the most at $7.8 billion, other items (not specified) at $3.7 billion, pharmaceuticals at $1.7 billion, and UAVs at $681 million. Also prominent in the import list are automobiles, fertilizers, and plant protection products.
Svyrydenko noted that Ukraine experienced a significant trade deficit of $26.4 billion last year. Two key factors caused it - logistical problems and defense needs in 2023.
It's worth reminding that agricultural exports during the war constitute more than half of Ukraine's total goods exports. Meanwhile, the Ministry of Agrarian Policy estimates the non-return of foreign exchange earnings from agricultural exports at $4-6 billion.
