According to the Central Statistical Bureau (CSB), in June 2020, the value of exports of goods at current prices decreased by 1.4% annually. However, imports of goods declined at a slightly higher rate - 5.2%. Consequently, the trade deficit remains smaller than a year ago.
Although growth in some export product categories resumed in June 2020, it was not able to fully compensate the overall decline in export volumes. On an annual basis, the value of exports of land vehicles, cereal products, as well as timber and timber products declined significantly. However, the value of exports of electrical appliances and equipment, pharmaceutical products, and chemical products increased.
In June 2020, the value of exports of goods to EU countries decreased by 1%. Exports to Spain (i.e., cereals), Estonia (i.e., petroleum products, vehicles), and Germany (i.e., dairy products, aircraft, parts and appliances and electrical equipment) declined. However, the value of exports to Poland (i.e., iron and steel) and the Netherlands (i.e., oilseeds and meat products) increased.
Exports to the CIS countries also slightly declined - by 0.9%. Whilst export volumes to Belarus (i.e., optical devices and pharmaceuticals) and Kazakhstan (i.e., machinery and equipment) declined, exports to Ukraine (i.e., pharmaceuticals) increased. Exports to Russia also rose by 1.3%.
In June, exports to other countries decreased at a slightly higher rate - by 3%. The value of exports fell more sharply to the United Kingdom (i.e., timber) and Niger (i.e., oilseeds and cereals). However, exports to Nigeria (i.e., cereals) and Turkey (i.e., iron and steel) increased.
In June 2020, the decline in imports of goods was significantly influenced by a decrease in imports of mineral products and land vehicles. This was offset by an increase in imports of electrical appliances and equipment.
In the first half of the year, exports were 3.7% lower than a year ago, while imports decreased by 11.7 percentage points.
In June 2020, the decline in the value of exports can still be attributed to the restrictions posed to curb the spread of the further coronavirus epidemic in various countries around the world. Future export developments (as the overall economic outlook) remain uncertain due to the Covid-19 pandemic. Weak external demand will also affect exports in the coming months.
The Ministry of Economics
Analytical Service