Balance of payments of the Republic of Lithuania: May 2020
Today, the Bank of Lithuania published the balance of payments for May 2020, which shows that:
although the surplus on the current account balance (CAB) contracted by 22.8%, the CAB remained in surplus, which amounted to €233.2 million. This contraction was driven by an increase in the negative primary income balance (see Chart 1). With imports of services rising more rapidly (49.6%) than exports (22.5%), the surplus on the balance of services somewhat decreased (2.8%). More robust growth in exports of goods (3.3%), compared to imports of goods (3.0%), reduced the deficit on the foreign trade balance, which ultimately stood at €20.4 million;
the surplus on the secondary income balance increased by 32.5% over the month. Transfers from European Union (EU) funds increased 2.1 times, amounting to €63.2 million in May, while Lithuania’s calculated contributions to the EU budget increased by 50.0% month on month, amounting to €50.5 million in May. Private individual remittances from abroad amounted to €44.7 million, a month-on-month increase of 4.8%. Private individual remittances from Lithuania amounted to €14.9 million, a month-on-month increase of 6.4%;
the positive net flow of financial account investment (€149.8 million) resulted from the increase in the positive net flow of other investment, which offset the negative net flow of portfolio investment that accumulated due to the new government eurobond emission (see Chart 2).
Chart 1. CAB and its composite flows
Chart 2. Net financial account investment flows
Comprehensive balance of payments data are also published on the Bank of Lithuania website.
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