2005-10-13
Current account balance. In August 2005 the current account deficit (CAD) widened by LTL 192 million compared to a month ago to LTL 408.1 million. According to preliminary data, the current account deficit in January-August 2005 made up LTL 2.74 billion (LTL 3.48 billion in January-August 2004).
According to the preliminary data of the Department of Statistics, in August 2005 export of goods increased by 9.8 per cent, while import of goods grew by 12.2 per cent month on month. The foreign trade deficit in August 2005 was 20.2% higher than in July. Compared to the same period last year, from January to August 2005 export of goods increased by 24.2 per cent, while import grew by 18.4 per cent.
Compared to July, export of services increased by 9.4 per cent, while import of services went up by 14.7 per cent in August 2005. The total positive surplus of the balance of services increased by LTL 1.5 million only in August and amounted to LTL 268.4 million.
Compared to the same period last year, from January to August 2005 export of services increased by 17.3 per cent, while import grew by 22.0 per cent. The surplus of the positive balance of services improved over the period under review by LTL 135.7 million.
Payments to non-residents (on their investment in Lithuania) made up LTL 194.7 million in August 2005 (LTL 170.3 million in July), while the income of domestic economic entities on investment abroad made up LTL 48.2 million (LTL 51.7 million in July). The deficit of the investment income balance went up by LTL 27.8 million, while the surplus of the employee compensation balance increased by LTL 17.7 million. The total deficit of the income balance increased in August by LTL 10.2 million compared to July to LTL 83.9 million.
The surplus of the balance of current transfers stood at LTL 97.2 million in August 2005 (LTL 99.3 million in July). In January-August 2005 the surplus of the balance of current transfers made up LTL 1.13 billion (LTL 316.8 million more than over the same period a year ago). The surplus of the balance of current transfers increased because of both higher payments from EU support funds and higher transfers of natural persons.
Capital and financial account balance. In August 2005, the net investment flow abroad by domestic economic entities, excluding official international reserves, stood at LTL 505.1 million and the net foreign investment flow in Lithuania made up LTL 1.28 billion. In addition, non-repayable capital transfers from abroad (EU support funds) made up LTL 24.4 million. The total net investment flow (both outward and inward investment) was LTL 803.7 million in August (LTL 558.3 million in July).
Foreign direct investment in Lithuania amounted to LTL 269.6 million in August 2005, LTL 955.5 million from January to August. Year on year, direct investment flow in Lithuania was lower by LTL 645.5 million over this period. Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 226.1 million in August 2005 (LTL 17.8 million in July, LTL 491.4 million from January to August).
In August 2005 net portfolio investment flow showed net investment in Lithuania of LTL 104.3 million. It was determined by non-resident investment in the equities of other domestic economic entities and money market instruments in monetary financial institutions.
Net other investment flow was positive in August 2005 at LTL 464.9 million, and from January to August it was LTL 2.5 billion. Foreign loans received by domestic commercial banks and increased trade credit to other economic entities had the largest impact on the total positive flow of this investment.
In August 2005 international reserve flow in the balance of payments made up LTL 254.0 million, but due to exchange rate fluctuations and revaluation of gold international reserves increased by LT 254.5 million (2.5 %). The growth of international reserves was affected by higher balances of credit institutions and central government deposits with the Bank of Lithuania by LTL 139.1 million and LTL 130.1 million, respectively, a net increase of other liabilities of the Bank of Lithuania and an increase of the currency outside the Bank of Lithuania of LTL 8.8 million and LTL 4.9 million, respectively.
The factor reducing international reserves was the contraction of other foreign liabilities of the Bank of Lithuania by LTL 28.4 million.