Evaluating the Sustainability of the Current Account Deficits of Ukraine: the Modern Trends

Анотація

The article analyzes the dynamics of the current account of the balance of payments of Ukraine, which indicates the persistence of its imbalances. The accumulated current account deficits preceded economic crises, confirming the hypothesis that the countries that demonstrate sustained current account deficits on the eve of crises suffer significant losses as a result of their occurrence. The main tendencies in Ukraine in the context of imbalances in investment and savings were analyzed. It has been shown that GDP growth was not accompanied by an increase in the current account deficits, which also signals its volatility. The current account deficit is attributable mainly to the negative net export balance that shows a decline in the foreign exchange earnings to resettle and service the previously accumulated external debt, which became especially actual in the last three years. The calculation of balance of the current account of Ukraine on the basis of its components and in accordance with the financial and capital accounts data has revealed a significant volume of hidden exports. Moreover, in recent years, the deterioration of situation in the context of external sustainability is determined by a combination of current account deficits and a rapid increase in the debt burden on the economy.

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