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The trade turnover of Ukraine grew by 12.1 percent in the first quarter of 2021 compared to same period last year.

It has been a good beginning of the year for the trade turnover in Ukraine. In Q1 this year the turnover grew by 12,1 percent compared to the same period last year, the Kyiv Post writes.

“The Ukrainian economy is recovering,” deputy minister of economy, Taras Kachka, said on the first of April in a Facebook-post, where he also said that not only is this year better than 2020, but every month so far is better than the previous.

It is predominantly a growing demand for ore and metal, which Ukraine has rich deposits of, and furniture that has been driving the positive trend alongside rising prices on metal and ore.

Ukraine has also increased exports to both the EU and China, but the balance of trade with both is still negative: Ukraine remains a net importer of goods from China and the European countries.

Payments coming up

A strengthening trade turnover is good news for Ukraine. In September, the country is obliged to pay back soem big loans, which could put a strain on the foreign currency reserve.

Ukraine has to pay back around 3 billion USD, and with no tranche of the 5 billion USD IMF loan in sight, that could put a strain on the Ukrainian economy. The foreign reserve is strong enough that the country would not go bankrupt.

However, that does not mean that it does not come with other headaches attached. Spending that kind of money from the reserve might send inflation racing, while the Hryvnia might devaluate further.

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