2003-08-12
In June 2003, the Balance of Payments current account balance was negative amounting to LTL 214.7 million. Compared to May, the current account deficit (CAD) widened by LTL 90.4 million, and compared to June 2002, it shrank by LTL 4 million. Such CAD increase was determined by an increase of the foreign trade deficit and a decrease of positive balances of services and current transfers.
According to the data of the Department of Statistics, in June 2003, compared to May 2003, export of goods increased by 6 per cent, while import of goods grew by 11 per cent. In June 2003, compared to the same period last year, export of goods increased by 11.2 per cent, while import grew by 8 per cent. In June, the export of investment goods, consumer goods and oil and the import of investment goods, intermediate goods and mineral products continued to grow. The import and export of cars continued to shrink.
Compared to May 2003, export of services increased in June by 4.9 per cent, while import of services went down by 13.1 per cent. The positive balance of services amounted to LTL 144.9 million (LTL 198.7 million in May). Compared to June 2002, export of services decreased by 15 per cent, while import of services contracted by 12.3 per cent. The positive services balance contracted over the period under comparison by LTL 35.8 million.
Payments to non-residents on investment in Lithuania contracted in June 2003 and labour income increased significantly, therefore, the balance of income was positive in June (LTL 31.1 million). Compared to May 2003, the total income balance improved by LTL 171.1 million, and compared to June of the previous year, by LTL 74.4 million.
Compared to the unusually high balance of current transfers in May 2003, this balance contracted by LTL 118 million in June and amounted to LTL 86 million.
The capital and financial account balance was positive in June and made up LTL 205.6 million. Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, went down by LTL 99.3 million in June, while international financial liabilities increased by LTL 242.4 million. The balance of non-repayable capital transfers amounted to LTL 47 million in June.
Foreign assets of domestic commercial banks decreased by almost LTL 34 million in June. The largest decrease was recorded in short-term foreign assets of commercial banks. Foreign assets of other sectors decreased by LTL 65.3 million.
Foreign direct investment flows amounted to LTL 41.5 million in June.
The investment portfolio of non-residents contracted by LTL 34 million in June. Over the month under review, non-residents acquired equity securities for the amount of LTL 21.6 million, however, their available debt securities issued in Lithuania contracted by LTL 55.6 million. Other investment of non-residents grew by LTL 266.6 million in June.
The positive international reserve flows in the balance of payments were LTL 183 million in June 2003. The main reason for the increase of the official reserves was Bank of Lithuania operations with commercial banks and the central government. Net purchase of foreign exchange by the Bank of Lithuania from commercial banks was LTL 156.6 million in June. Reserves were also boosted by the net income of the Bank of Lithuania from investment in foreign exchange and the strengthening of the US dollar against the litas. The official reserves were pushed down by LTL 30.2 million by repurchase transactions with non-residents.