2005-11-15
Current account balance. In September 2005 the current account deficit (CAD) contracted by LTL 37.7 million compared to a month ago to LTL 370.4 million. According to the preliminary data, in Q3 2005 the CAD made up LTL 994.6 million (5.2% of the GDP), while over the period from January to September it comprised LTL 3.11 billion, i.e. 6.0 per cent of the GDP (in January to September 2004 the CAD was LTL 3.79 billion or 8.4% of the GDP).
According to the preliminary data of the Department of Statistics, in September 2005, compared to August, export of goods increased by 13.7 per cent, while import of goods grew by 10.4 per cent. In September 2005, the foreign trade deficit was almost the same as in August, however, the trade deficit of Q3, compared to Q2, was lower by more than a quarter of a billion. Compared to the same period last year, from January to September 2005 export of goods increased by 25.1 per cent, while import grew by 20.9 per cent.
Compared to August 2005, export of services decreased in September by 7.4 per cent, while import of services contracted by 4.1 per cent. The total positive surplus in the balance of services decreased by LTL 36.6 million in September and amounted to LTL 231.8 million. Over the nine months of 2005, exports of services increased by 17.7 per cent, and import of services grew by 22 per cent year on year. The surplus of the positive balance of services improved over the period under review by LTL 171.9 million.
Payments to non-residents (on their investment in Lithuania) made up LTL 172 million in September 2005 (LTL 194.7 million in August), while the income of domestic economic entities on investment abroad made up LTL 48.6 million (LTL 48.2 million in August). The deficit of the investment income balance declined by LTL 23.1 million, while the surplus of the compensation balance decreased by LTL 33.2 million. The total deficit of the income balance increased by LTL 10.1 million in September, compared to August, to LTL 93.9 million.
The surplus of the balance of current transfers stood at LTL 186.2 million in September 2005 (LTL 97.2 million in August). Over nine months of 2005 the surplus of the balance of current transfers made up LTL 1.32 billion (LTL 471.7 million more than over the same period a year ago). This increase was caused by higher transfers from EU support funds and natural persons.
Capital and financial account balance. In September 2005, the net investment flow abroad by domestic economic entities, excluding official international reserves, stood at LTL 353.5 million and the net foreign investment flow in Lithuania made up LTL 982.9 billion. In addition, non-repayable capital transfers from abroad (EU support funds) made up LTL 139.6 million. The total net investment flow (both outward and inward investment) was LTL 769 million in September (LTL 803.7 million in August).
In September 2005, foreign direct investment in Lithuania made up LTL 263 million, LTL 1.22 billion in January to September. Year-on-year, the direct investment flow in Lithuania was lower by LTL 488.1 million. Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 229.1 million in September 2005, LTL 720.4 million from January to September.
In September 2005 net portfolio investment flow showed net investment abroad of LTL 43.3 million, which was determined by increased investment of domestic commercial banks in non-resident equities.
Net other investment flow was positive in September 2005 at LTL 442 million. The positive flow of short-term liabilities of domestic commercial banks had the largest impact on the total positive flow of this investment.
In September 2005 international reserve flow in the balance of payments made up LTL 370.3 million, but due to revaluation of gold international reserves increased by LTL 390.5 million (3.8 %). The growth of international reserves in September was affected by increased central government deposits and higher balances of credit institutions with the Bank of Lithuania by LTL 229.7 million and LTL 117.7 million, respectively, and an increase of the currency outside the Bank of Lithuania of LTL 79.8 million.
The international reserves were pushed down by the decline of Bank of Lithuania other foreign liabilities of LTL 30.5 million and a net contraction of other liabilities of the Bank of Lithuania of LTL 6.2 million.