The monthly foreign trade deficit for the first time exceeded USD 4bn level and hit USD 4.055bn in June, according to the data by State Statistics Institute. In May, the gap widened to its second high level of USD 3.99bn, followed by December 2004's USD 3.94bn. It is also noteworthy that in June the ratio of exports to imports declined to lowest level of 58.8% since 2004.
In June, exports stood at USD 5.79bn, posting m/m decline for a third consecutive monthly. The figure indicates 9.7% rise compared to June 2004, yet this is lowest rate of y/y increase registered since February. On the other hand, imports increased by 16.3% y/y to USD 9.85bn. The figure is also higher than the corresponding level of USD 9.80bn in May.
The jump of intermediate goods imports by 17.7% played the main role in climbing of the overall figure. Rise of
investment goods was 10.8%, while the corresponding figure was a low of 4.8% for consumption goods. It should also be noted that mineral fuel and mineral oil exports was up by a significant 55.7% in June, as the crude oil import bill increased by 34.7% on the back of rising prices.
As for the other subcategories, import of machinery was up by 21.6% indicating strong investment appetite. On the
other hand vehicle imports declined by 12% in the month. In H1, exports increased 20.5%, against 21.3% rise in imports. As a result foreign trade deficit climbed to USD 20bn in H1 indicating 22.8% increase compared to the same period of last year.