2003-03-14
Key January results.In January 2003, the balance of payments current account recorded a surplus of LTL 232.7 million.From the start of the compilation of the monthly balance of payments in 2001, this has only been a third occasion when a positive balance in the current account has been recorded (previously in August and September 2001).It should also be noted that in March and September 2002 the negative current account balance was only LTL 1.5 million and LTL 2.5 million.In January 2003, compared to December 2002, the current account improved by LTL 550.9 million, and by LTL 436.4 million compared to January last year.Such developments were determined by a large increase of exports and the decline of the negative income balance.
According to the data of the Department of Statistics, in January 2003, compared to December 2002, export of goods increased by 17.7 per cent, while import contracted by 16.2 per cent.In January 2003, compared to the same period last year, export of goods increased by as much as 36.8 per cent, while import grew by only 5.5 per cent.
The developments in the services sector were negative.Compared to December 2002, export of services decreased in January by 35.2 per cent, while import of services went down by 18.8 per cent.The positive balance of services declined by LTL 119.8 million.Compared to January 2002, export of services contracted in January 2003 by 6.5 per cent, while import of services went up by 4.6 per cent.The positive services balance contracted over the period under comparison by LTL 30.3 million.One of the reasons for the decline of the export of services was a smaller number of foreign visitors to the country and the resulting decline in the positive travel balance.
In January 2003, compared to December 2002, payments to non-residents on their investment in Lithuania went down.This resulted in the contraction of the negative income balance by LTL 61.4 million.
The positive balance of current transfers, compared to December 2002, declined by LTL 61.1 million, yet it went up by LTL 10.5 million compared to January.
The negative capital and financial account balance made up LTL 95.8 million.Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, went down by LTL 352.8 million in January, while international financial liabilities increased by LTL 223.7 million.The balance of non-repayable capital transfers amounted to LTL 10.1 million in January.
Foreign assets of domestic commercial banks decreased by LTL 232.5 million in January.This was mostly determined by the decline of commercial bank time deposits in foreign banks (by LTL 366 million).The contraction of trade credit to non-residents reduced foreign assets of other domestic economic sectors by LTL 118.2 million.
Foreign direct investment flows were stood at LTL 118.9 million in January.
Investment portfolio inflows made up LTL 21.6 million in January, while other non-resident investment declined by LTL 316.6 million (mostly because of the decline of trade credit from non-residents and repayment of foreign loans on behalf of the state).
The positive international reserve flows in the balance of payments were LTL 234.9 million in January 2003.The main reason behind the increase of international reserves was the growth of Bank of Lithuania repo transactions with non-residents of LTL 297.5 million.Another source of the increase was the net purchase of foreign exchange from commercial banks of USD 65.9 million. The reserves were pushed down by the repayment of the remaining balance of the IMF loan by the Bank of Lithuania of LTL 39.2 million.