2005-06-16
Current account balance. In April 2005 the current account deficit (CAD) widened by LTL 911.7 million month on month to LTL 1.07 billion. This substantial increase of the CAD was mostly determined by the widening of the foreign trade deficit. The CAD in April was the same as in the same period a year ago. According to preliminary data, the current account deficit in January-April 2005 made up LTL 1.72 billion (LTL 2.05 billion in January-April 2004).
According to the preliminary data of the Department of Statistics, in April 2005 export of goods increased by 4.3 per cent, while import of goods grew by 30.8 per cent month on month. Year on year, export of goods went up by 31.8 per cent, while import of goods increased by 21.8 per cent. The foreign trade deficit was 2.4 times higher in April 2005 than in March and accounted for nearly one half of the deficit for the period from January to April. These changes were determined by a sharp rise in imports of mineral products. Month on month, import of mineral products increased in April 2.5 times and accounted for 37.5 per cent of the total import of goods over the month.
Export of services decreased in April by 6.1 per cent month on month, while import of services grew by 0.5 per cent. The total positive surplus in the balance of services decreased by LTL 39.4 million in April and amounted to LTL 113.6 million. Year on year, export of services increased by 17 per cent, while import of services grew by 38.9 per cent. The surplus of the positive balance of services declined over this period by LTL 44.1 million.
Payments to non-residents on their investment in Lithuania made up LTL 186.3 million in April 2005 (LTL 276.3 million in March), while the income of domestic economic entities (on investment abroad) made up LTL 43.9 million (LTL 50 million in March). Over the period under review, the deficit of the investment income balance contracted by LTL 83.9 million, while the total deficit of the income balance went down by LTL 66.5 million in April (to LTL 110.5 million).
The surplus of the balance of current transfers stood at LTL 149.7 million in April 2005 (LTL 250.6 million in March). This surplus of the balance of current transfers declined because of lower payments from EU structural funds. In April 2004, the surplus of the balance of current transfers was higher by LTL 11.8 million and stood at LTL 161.6 million.
Capital and financial account balance. The total net foreign investment flow by domestic economic entities (LTL -289.5 million), excluding international reserves, was negative in April 2005 and reflected total net return of investment. Foreign investment flow in Lithuania (total net inflows) were LTL 520 million in April. The total net investment flow (both outward and inward investment) was LTL 809.5 million in April. In March total net investment flow was negative (LTL -46.6 million).
Foreign direct investment flow amounted to LTL 287.8 million in April 2005, LTL 925.5 million from January to April. Year on year, direct investment flow in Lithuania was lower by LTL 15.1 million. Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 322.8 million in April 2005, LTL 889.7 million from January to April. Net foreign direct investment flow made up 51.6 per cent of the CAD of the period from January to April.
In April 2005 net portfolio investment flow showed net investment abroad of LTL 257.2 million, which was determined by increased investment of domestic commercial banks in non-resident debt securities.
Net flow of other investment was positive in April 2005 (LTL 738.6 million), reflecting total net investment inflows in Lithuania. The decrease of domestic commercial bank deposits and correspondent account balances with foreign banks, in addition to received foreign loans, had the largest impact on the rise of the total positive flow of this investment.
Reserve assets continued to grow in April 2005. Their positive flow in the balance of payments stood at LTL 117.8 million, LTL 580.7 from January to April. The growth of reserve assets was affected by the increase of currency outside the Bank of Lithuania (LTL 129.5 million), higher balances of credit institutions with the Bank of Lithuania (LTL 80.6 million) and increased other foreign liabilities of the Bank of Lithuania (LTL 22.8 million).
The factors reducing reserve assets were the decline of central government deposits with the Bank of Lithuania (LTL 82.2 million) and the net decrease of other liabilities of the Bank of Lithuania (LTL 23.4 million).