Economy and politics

The trade balance deficit in 9M10 increased to USD 5.4 bln, while the surplus in the services trade balance in 9M10 rose to USD 4.3 bln. Export of goods in 9M10 added 32.1%, amounting to USD 36.3 bln, while imports added 32.2% and amounted to USD 41.7 bln.

The Ministry of Economy of Ukraine has initiated the privatization of a number of companies that were recently excluded from list of strategic enterprises: thermal power stations, subways, aviation companies, machinery plants, coal mines etc.

The head of the IMF mission to the Ukraine noted the revival of trade, the positive expectations of investors, and the successful placement of government bonds. He considers the 2.9% rise in inflation in September as a timely factor.

Foreign reserves of the National Bank of Ukraine (NBU) decreased by 1.2% in October to USD 34.3 bln, amounting to a 10M10 growth of 29.2%.

Direct state debt and state-guaranteed debt of Ukraine grew by 4.4% to USD 50.4 bln in September. In 9M10, this equals a 27% increase.

In 9М10, the financial account balance rose to a positive USD 7.3 bln.

In the third quarter, the net loss in the Ukrainian banking system equaled UAH 10 bln.

Темпы восстановления промышленного производства в Украине в сентябре 2010 года ускорились до 10.2% г/г, что за 9М10 составляет 10.8% г/г.

International rating agency Moody's Investors Service changed Ukraine’s rating from “B2 negative” to “B2 stable”.

Consumer price index (CPI) increased by 2.9% in September 2010 pushing annualized inflation to 10.5%.