2005-09-09
Current account balance. In July 2005 the current account deficit (CAD) widened by LTL 36.1 million compared to a month ago to LTL 212.9 million. The CAD in July was LTL 385.3 million lower than in the same period a year ago. According to preliminary data, the current account deficit in January - July 2005 made up LTL 2.41 billion (LTL 3.1 million in January-July 2004).
According to the preliminary data of the Department of Statistics, in July 2005 export of goods increased by 0.4 per cent, while import of goods grew by 1.1 per cent compared to June. The foreign trade deficit in July 2005 was 3.8% higher than in June. Compared to the same period last year, from January to July 2005 export of goods increased by 23.6 per cent, while import grew by 15.9 per cent.
Compared to June, export of services increased in June by 5.8 per cent, while import of services declined by 9.4 per cent in July 2005. The total positive surplus of the balance of services increased by LTL 83.9 million in July and amounted to LTL 270.1 million. Over the seven months of 2005, exports of services increased by 8.9 per cent, and import of services grew by 23.8 per cent year on year. The surplus of the positive balance of services declined over the period under comparison by LTL 226.5 million.
Payments to non-residents (on their investment in Lithuania) made up LTL 170.3 million in July 2005 (LTL 236.6 million in June), while the income of domestic economic entities on investment abroad made up LTL 51.7 million (LTL 56.9 million in June). The deficit of the investment income balance declined by LTL 61.1 million, while the surplus of the compensation balance increased by LTL 25.1 million. The total deficit of the income balance contracted by LTL 86.2 million compared to June to LTL 73.7 million.
The surplus of the balance of current transfers stood at LTL 99.3 million in July 2005 (LTL 245.5 million in June). This surplus of the balance of current transfers decreased because of lower transfers from EU support funds. Over the seven months of the year the surplus of the balance of current transfers was close to LTL 1 billion (LTL 416.62 million more than over the same period a year ago).
Capital and financial account balance. In July 2005, the net investment flow abroad by domestic economic entities, excluding official international reserves, stood at LTL 94.1 million and the net foreign investment flow in Lithuania made up LTL 652.4 million. The total net investment flow (both outward and inward investment) was LTL 558.3 million in July (LTL 69 million in June).
Foreign direct investment in Lithuania amounted to LTL 69.0 million in July 2005, LTL 1,315.2 million from January to July. Year on year, direct investment flow in Lithuania was lower by LTL 181.5 million over this period. Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 17.8 million in July 2005 (LTL 245.7 million in June), and was LTL 1,136.9 million from January to July Net foreign direct investment flow made up 48.2 per cent of the CAD in over the period from January to July.
In July 2005 net portfolio investment flow showed net investment abroad of LTL 248.7 million, which was determined by the increased investment of domestic commercial banks in non-resident debt securities and lower non-resident investment in the equities of domestic economic entities.
Net other investment flow was positive in July 2005 at LTL 784.7 million. 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 July 2005 international reserve flow in the balance of payments made up LTL 119.1 million, but due to exchange rate fluctuations and revaluation of gold international reserves increased by LT 99.3 million (1.0 %). Reserve asset growth was determined by increased currency outside the Bank of Lithuania (LTL 172.1 million) and higher foreign liabilities (LTL 67.7 million).
Reserves were pushed down by the lower deposits of the central government and lower balances of credit institutions with the Bank of Lithuania, by LTL 77.9 million and LTL 52.4 million, respectively, and a net decline of Bank of Lithuania other liabilities of LTL 10.2 million.