Highlight: Trade with Russia
Politics: Regular local elections were held on October 25. No party was able to gain a majority in any oblast (regional) council.
Real sector: Decline in industrial output decelerated further to 5.1% yoy which partly reflects stabilisation of the situation in the East of Ukraine.
Energy sector:In October, Ukraine imported 2.4 bn cubic meters of gas (bcm): 2 bcm from Russia and 0.4 bcm from Europe.
Agriculture:Gross agricultural production in September decreased by 4.2% yoy due to lower crop harvest and decline in livestock production.
External sector: Current account balance in September was positive at USD 0.1 bn as slight deficit of trade in goods was compensated by positive net exports of services.
Fiscal policy: Higher than planned revenues, lower than planned debt and subsidy costs, delays in appropriating extra revenues resulted in the surplus of central government and local governments.
Social policy: Between January and September the number of families that were granted housing and utility subsidies increased by 5.4 times to 2.6 million.
Labour market:Real wage declined by 18.6% yoy as a result of bad financial results of companies, high inflation, and weak labour market.
Monetary policy: CPI in October fell by 1.3% mom.
Exchange rate: In October, interbank exchange rate remained in UAH 21-23 range set by the NBU but it moved closer to upper end of the range by the end of the month.
State debt: Key internationalsovereign rating agencies upgraded Ukraine’s ratings for obligations in foreign currency.
