2007-09-13
Current account balance.
In July 2007, the deficit in the current account of the country?s balance of payments was LTL 894.99 million, showing an increase of 28.6 per cent compared to June, and an increase of 27.1 per cent compared to July 2006. CAD went up mainly as the result of a double decrease in the positive balance of current transfers and an increase of deficit in income balance.
January - July 2007, CAD amounted to LTL 6.6 billion, 52.8 per cent above the figure for corresponding period in 2006. This increase was the result of LTL 2.23 billion growth of the foreign trade deficit (CAD increased by LTL 2.28 billion).
According to preliminary data of the Department of Statistics, in July 2007, export of goods went up by 3.3 per cent, while import of goods grew by 2.1 per cent month on month. In July 2007, the month-on-month foreign trade deficit went down by 1.3 per cent (year-on-year it grew by 27.8%).
In January - July 2007, the year-on-year rise in export and import of goods was 9.6 per cent and 17 per cent, respectively, while foreign trade deficit widened by 40.4 per cent to make up LTL 9.9 billion. The largest share of the export of goods during this period accounted for mineral products (16 %), machinery and mechanical and electrical appliances (11.8 %), and vehicles and associated transport equipment (11 %). The above groups of goods accounted for the largest share of the import as well (18.1%, 16.6% and 16.5%, respectively).
In January - July 2007, Lithuania’s export of goods to the EU25 countries went up by 13.3 per cent, while import from these countries rose by 30.1 per cent; at the same time export to the CIS countries grew by 32.3 per cent while import declined by 12.1 per cent.
In January - July 2007, the Lithuania’s main export partners were Russia (14.1 %), Latvia (12.9 %), Germany (10.7 %), and Poland (6.6 %), while Russia (19.1 %), Germany (14.8 %) and Poland (10.4 %) were main import partners.
In July 2007, month-on-month growth of the export of services made up 15.5 per cent, import of services grew by 16.8 per cent, while total positive surplus of the balance of services increased by 11.1 per cent (LTL 239.6 million). Export of services grew by 8.2 per cent in January-July 2007, as compared to the same period in 2006, while import of services grew by 18.7 per cent. The positive surplus of the balance of services declined by LTL 261.1 million or 15.5 per cent in January - July 2007.
In July 2007, payments to non-residents (on their investment in Lithuania) made up LTL 460.3 million, while the income of domestic economic entities on investment abroad made up LTL 110.2 million. Investment income balance deficit amounted to LTL 350.1 million, an increase of LTL 109.6 million compared to the previous month. The increase in positive balance of compensation in July sent July?s total income balance deficit up to LTL 258.3 million. In January - July 2007, the income balance deficit increased by 8.9 per cent year on year to make up LTL 1.8 billion.
The surplus in the balance of current transfers amounted to LTL 173.6 million (in June 2007, it was 339.2 million). The narrowing of the surplus came as a result of a decrease of LTL 187.7 million in the transfers from the EU support funds.
In January - July 2007, the positive surplus on the balance of current transfers increased by LTL 354.3 million, 30 per cent, to make up LTL 1.5 billion .
Capital and financial account balance.
In July 2007, foreign investment of domestic economic entities, excluding official reserve assets, increased considerably (their flow reached LTL 816.6 million). The flow of foreign investment in Lithuania made up LTL 1.2 billion, therefore, total net investment flow (both outward and inward investment) went down 5 times to LTL 370.6 million (in June, it was LTL 1.7 billion. .
In January-July 2007, outward investment flow equalled to LTL 2.5 billion while the inward investment flow amounted to LTL 9.3 billion. Year on year, outward investment flow contracted by 17 per cent and inward investment flow went down by 24.7 per cent. In July, non-repayable capital transfers made up LTL 154.3 million; while in January - July it made up LTL 723.2 million versus LTL 479.2 million in January-July 2006.
In July 2007, foreign direct investment flow in Lithuania reached LTL 388.3 million. Taking into account foreign direct investment made by domestic economic entities, net foreign direct investment flow made up LTL 312.5 million in July. Meanwhile, January - July foreign direct investment flow in Lithuania reached LTL 3.2 billion litas from (in the corresponding period in 2006, it was LTL 1.7 million), while net flow was LTL 2.5 billion litas.
Net portfolio investment flow was negative both in July and January - July 2007, amounting to LTL 426.7 million and 1.95 billion, respectively. It was determined by an increase of Lithuania?s investment abroad.
Net flows of other investment and financial derivatives were positive both in July and January - July 2007, amounting to LTL 484.8 million and 6.2 billion, respectively. The increase of liabilities of domestic monetary financial institutions had the largest impact on the total positive flow of this investment.
In July 2007, official reserve assets contracted and their flow within the balance of payments made up LTL 846.9 million. This contraction was the result of a decrease of LTL 1.1 billion in the external liabilities of the Bank of Lithuania.
The growth of official reserve assets was affected by LTL 128.8 million rise of currency in circulation and LTL 104.8 million increase in central government deposits with the Bank of Lithuania, as well as an increase in other liabilities and deposits of other MFIs with the Bank of Lithuania by LTL 28.4 million and LTL 23.1 million, respectively.