The National Bank of Ukraine (NBU) has revised downward current account deficit forecast from 2% of GDP to 0.8% of GDP in 2021 and from 4.2% of GDP to 3.6% of GDP in 2022, the regulator said on its website on Thursday.

"In 2021, the current account will record a slight deficit, which will widen noticeably in 2022 – 2023 on the back of rising domestic demand and less favorable terms of trade," the central bank said.

The current account is expected to return to a slight deficit of 0.8% of GDP in 2021, propelled by higher domestic demand and the gradual revival of international tourism.

In 2022 – 2023, the current account deficit will widen noticeably, mainly due to less favorable terms of trade for exporters of agricultural and metallurgical products and the expected drop in earnings from gas transit.