According to the 2023 results, Ukraine’s exports increased and amounted to almost 100 million tons of goods. This is 112,000 tons more than in 2022. However, the value of exports fell by 18.7%, or $35.8 billion.
Despite the general decline in exports of Ukrainian goods, positive trends were observed in the furniture market. Last year, compared to 2022, volumes increased by 11% and revenues by 7%. Last year, Ukraine also exported 1.7 times more sugar.
However, in 2023, the Ukrainian economy lost revenue in most export items. For example, the largest export commodity by volume, corn, while growing by 5% in physical terms, brought in 16.8% less in money than a year earlier. Last year, Ukraine exported 26.2 million tons of this grain crop.
“Last year, export revenues reached one of the lowest levels in the last decade. This is an expected and objective result, the result of logistics problems. We are now slowly resolving them. We have launched an alternative corridor in the Black Sea, are developing river transport on the Danube and are continuing negotiations with the Polish side to unblock the border. Thanks to this, in December 2023, for the first time in the second half of the year, we exported goods worth more than $3 billion. In December 2023, we exported more than 10 million tons for the first time since March 2023,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
According to her, the joint efforts of the Ukrainian Government and international partners are also contributing to the growth of exports by sea. In December 2023, this figure increased by one-third MoM, to 7.34 million tons of cargo.
Overall, in 2023, Ukraine exported almost 1 million tons more by sea than in the previous year. In addition to grain, other goods, including metals, are exported via this route. Exports of this group of products increased after the launch of the alternative sea corridor. For example, in December 2023, exports of semi-finished products increased by 40% and exports of flat-rolled products by 45.3% compared to November 2023.
However, exports by road continue to decline. The main reason is the Polish border blockade. In December 2023, the figure fell by 18.3% MoM. However, the year-to-date loss was only -0.7%. Negotiations are ongoing at all levels to resolve this problem.
At the same time, Ukraine has increased its exports by containerised transport – by 86% by rail by 36% by road. This is now the most efficient mode of transport for value-added products.
In contrast to exports, imports in monetary terms increased last year to $62.2 billion. Ukraine imported $7.8 billion worth of fuel, $3.7 billion worth of “miscellaneous” (not disclosed), $1.7 billion worth of medicines and $681 million worth of UAVs. Other top imports include cars, fertilisers and crop protection products.
In addition, Yuliia Svyrydenko noted that last year Ukraine experienced a significant trade deficit in goods worth $26.4 billion. It was caused by two key factors – problems in logistics and defence needs in 2023. Therefore, in 2024, the Government will continue to work to strengthen export logistics with air defence systems and find new ways to export goods and services. It will also facilitate the localisation of defence companies in Ukraine. (Government portal/Business World Magazine)