2005-08-11
Current account balance. In June 2005 the current account deficit (CAD) widened by LTL 51.1 million compared to a month ago, to LTL 176.8 million. The CAD in June was LTL 16.9 million higher than in the same period a year ago. According to preliminary data, the current account deficit in the period form January to June 2005 stood at LTL 2.2 billion (LTL 2.5 billion from January to June 2004).
According to the preliminary data of the Department of Statistics, in June 2005 export of goods increased by 8.2 per cent, while import of goods grew by 7.1 per cent compared to the previous month. The foreign trade deficit in June 2005 was 2.9 per cent lower than in May. Year on year, export of goods went up by 10.9 per cent, while import of goods increased by 17.2 per cent in June 2005.
Compared to May 2005, export of services increased in June by 11.3 per cent, while import of services grew by 22.6 per cent. The total positive surplus in the balance of services decreased by LTL 21.2 million in June and amounted to LTL 186.2 million. During first half of 2005, export of services increased by 10.1 per cent, and import of services grew by 25.1 per cent year on year. The positive surplus of the balance of services declined over the period under comparison by LTL 192.3 million.
Payments to non-residents on their investment in Lithuania made up LTL 236.6 million in June 2005 (LTL 129.6 million in May), while the income of domestic economic entities on investment abroad made up LTL 56.9 million (LTL 53.1 million in May). The deficit of the investment income balance widened by LTL 103.5 million, while the surplus of the compensation balance increased by LTL 3.8 million. The total deficit of the income balance increased 2.7 times in June compared to a month ago to LTL 159.9 million (LTL 60.2 million in May)
The surplus of the balance of current transfers stood at LTL 245.5 million in June 2005 (LTL 168.5 million in May). This surplus of the balance of current transfers increased because of higher payments from EU support funds. In June 2004 the surplus of the balance of current transfers was LTL 16.6 million.
Capital and financial account balance. Excluding official reserve assets, foreign investment by domestic economic entities made up LTL 393.5 million in June 2005 (LTL 327.7 million in May). Foreign investment flow in Lithuania was LTL 485.3 million in June 2005 (LTL 702.7 million in May). The total net investment flow (both outward and inward investment) was LTL 69 million in June (LTL 255.5 million in May).
Foreign direct investment in Lithuania made up LTL 279.4 million in June 2005, amounting to LTL 1.2 billion from January to June. Year on year, direct investment flow in Lithuania was lower by LTL 151.6 million over the period from January to June 2005. Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 245.7 million in June 2005 (LTL 116.9 million in May), and amounted to LTL 1.1 billion from January to June. Net foreign direct investment flow made up 50.9 per cent of the CAD of the period from January to June.
In June 2005, net portfolio investment flow showed net investment abroad of LTL 133.6 million, which was determined by increased investment of domestic commercial banks and pension funds in non-resident debt securities and lower government liabilities to non-residents.
Net other investment flow was negative in June 2005 (LTL -32.7 million).
In June 2005, official reserve assets increased by LTL 63.2 million (0.6%). The growth of reserve assets was affected by the increase of the currency outside the Bank of Lithuania (LTL 178.3 million), the net increase of other liabilities of the Bank of Lithuania (LTL 61.9 million) and higher balances of credit institutions with the Bank of Lithuania (LTL 33.2 million). The factors reducing reserve assets were the decline of central government deposits with the Bank of Lithuania (LTL 182.8 million) and the net decrease of other foreign liabilities of the Bank of Lithuania (LTL 27.4 million).