Economy and politics

According to a note from the National Bank of Ukraine (NBU), a current account deficit of USD 78 bln was observed in February, thus resulting in a CA surplus for the second month in a row.

Monday was rich with mixed macroeconomic statistics on Ukraine. The Ministry of Economy released data on February’s production of goods and services index and budget deficit.

The Ukrainian Government has voided a bill that was earlier accepted by Parliament on the 13% tariff imposed on all non-critical imports.

All industries in Ukraine saw a dramatic decline in real output in January-February 2009 compared to the respective period of 2008.

According to a memo from the Ukrainian State Statistics Committee, consumer prices grew 1.5% MoM (4.4% YTD and 20.9% YoY), compared to a 2.9% MoM growth in January 2009 and 2.7% MoM growth in February 2008.

According to a note from the National Bank of Ukraine, foreign reserves fell 8.2% MoM (USD 2.36 bln) in February 2009, thus reaching USD 26.46 bln.

According to data from the Ministry of Economy, the merchandise balance deficit shrank 23.5% MoM in February to USD 276.2 mln.

The State Statistics Committee of Ukraine has announced the nominal GDP figure for 2008. The value added amounted for UAH 950.5 bln (USD 180.4 bln at the annual weighted average exchange rate). The government had forecasted nominal GDP at UAH 956.8 bln for 2008.

Standard & Poor’s, a rating agency, has cut Ukraine’s long-term and short-term foreign currency rating to CCC+/C from B/B, with a negative outlook. Similarly, Ukraine’s local currency ratings were lowered to B-/C from B+/B.

Ukraine’s President Viktor Yuschenko has signed a bill proposed by the Parliament that imposes an additional 13% tariff on all imports except those deemed to be critical.