2005-01-13
Current account balance.In November 2004 the current account deficit (CAD) widened by LTL 276.5 million month-on-month to LTL 501.1 million.Such development was mostly determined by the widening of trade and income balance deficits.In November 2003 the CAD amounted to LTL 511.3 million.
According to the preliminary data of the Department of Statistics, in November 2004, compared to October, export of goods decreased by 5.7 per cent, while import of goods grew by 1.4 per cent.Year-on-year, export of goods went up by 24 per cent, while import of goods increased by 19.8 per cent.
Compared to October, export of services declined by 12.4 per cent, while import of services contracted by 19 per cent, and the total surplus of the positive balance of services went up by as little as LTL 12.8 million to LTL 149 million in November 2004.Year-on-year export of services increased by 9.8 per cent, while import of services grew by a mere 1.2 per cent.The surplus of the positive balance of services improved over the period under review by LTL 41.4 million.
Payments to non-residents (on their investment in Lithuania) made up LTL 187.6 million in November 2004 (LTL 136.1 in October), while the income of domestic economic entities (on investment abroad) made up LTL 45.7 million (LTL 47.6 million in October).The deficit of the investment income balance increased by LTL 53.4 million over the period under review, while the surplus of the compensation balance went down by LTL 20.4 million.Due to the above changes, the total deficit of the income balance widened by LTL 73.8 million against October (to LTL 135.6 million).
The balance of current transfers was positive in November 2004 at LTL 101.7 million.Due to lower non-resident transfers to domestic legal entities the total positive balance of current transfers decreased by LTL 6.4 million compared to October.
Capital and financial account balance.In November 2004, excluding reserve assets, total investment flow abroad by domestic economic entities (LTL 143.3 million) reflected net payments, and non-resident investment flow in Lithuania (LTL 895.6 million) resulted in total net inflows, of which funds received from the EU structural funds for financing investment projects in Lithuania comprised LTL 130.9 million.Funds in the capital account and net foreign direct investment covered 90.5 per cent of the current account deficit in November.
Foreign direct investment flow amounted to LTL 328.2 million in November 2004.Compared to October, it contracted by LTL 43.8 million, which was determined by the contraction of non-resident investment in equity capital.Taking into account foreign direct investment by domestic economic entities, net foreign direct investment inflows made up LTL 322.3 million in November 2004.
Net portfolio investment flow was negative in November 2004 (LTL -99.3 million),which was determined by increased investment of domestic commercial banks in non-resident debt securities.
Net other investment flow was positive in November 2004 (LTL 376 million).This net positive flow was due to the growth of liabilities to non-residents, i.e. increased non-resident funds with domestic commercial banks and the Bank of Lithuania.
International reserves increased in November 2004.Their positive flow in the balance of payments stood at LTL 138.7 million.The main reasons behind the increase was the foreign exchange operations of the Bank of Lithuania with central government institutions, which pushed the reserves up by LTL 229.0 million, and an LTL 89.4 million increase of Bank of Lithuania repurchase transactions with non-residents.The international reserves were pushed down by LTL 191.7 million owing to Bank of Lithuania foreign exchange transactions with commercial banks.Net purchase of foreign exchange by commercial banks from the Bank of Lithuania amounted to USD 194.4 million in November 2004.