In September 2003, the Balance of Payments current account balance was negative amounting to LTL 363.1 million (the current account balance was positive in August at LTL 104.9 million).Compared to September 2002, the current account deficit widened by LTL 326.1 million.The negative developments of the balance were determined by the expansion of the foreign trade deficit.
According to the data of the Department of Statistics, in September 2003, compared to August 2003, export of goods increased by 1.2 per cent, while import of goods grew by 17.7 per cent.Compared to the same period last year, in September 2003 export of goods increased by 4.3 per cent, while import grew by 7.8 per cent.
Compared to August 2003, export of services decreased in September by 11 per cent, while import of services increased by 9.7 per cent.The positive balance of services amounted to LTL 93.6 million (LTL 180.4 million in August).Compared to September 2002, export of services decreased by 2.1 per cent, while import of services increased by 23.7 per cent.The positive balance of services contracted over the period under comparison by LTL 77.8 million.
ayments to non-residents (on their investment in Lithuania) in September 2003 exceeded the income from Lithuania’s investment abroad by LTL 35.7 million.In addition, as compared to August, the balance of compensation of employees contracted by LTL 16.5 million.For the above reason, the overall income balance was negative in September (LTL -41.3 million).Compared to September 2002, the total negative income balance increased by LTL 13 million.
The balance of current transfers increased by LTL 28.6 million in September 2003, in comparison with August, and amounted to LTL 55 million.
The capital and financial account balance was positive in September, making up LTL 95.8 million.Foreign assets of domestic economic entities (financial claims to non-residents), excluding reserve assets, grew in September by LTL 307 million, while international financial liabilities went up by LTL 619 million.The balance of capital transfers amounted to LTL 40.6 million in September.
Foreign assets of domestic commercial banks increased by LTL 157.1 million in September.The largest increase was recorded in commercial bank deposits and correspondent account balances with foreign banks.Foreign assets of other sectors went up by LTL 149.9 million.
Foreign direct investment flows in Lithuania amounted to LTL 163.2 million in September 2003,of which the largest (LTL 98.3 million) were non-resident investments in equity capital (acquisition of blocks of shares by non-residents).
The investment portfolio of non-residents contracted in September by LTL 37.8 million.Over the month under review, the sale of shares of domestic economic entities by non-residents in the secondary market amounted to LTL 22.1 million.Holdings of Lithuanian debt securities by non-residents declined as well (LTL 15.7 million).Other non-resident investment grew in September by LTL 502.1 million.This growth was determined by the accumulation of non-resident deposits in domestic commercial banks and increased repo transactions with the Bank of Lithuania.
The positive reserve asset flows in the balance of payments amounted to LTL 256.8 million in September 2003.The main reason behind the increase of reserve assets was central government institution operations in foreign exchange with the Bank of Lithuania and an LTL 130.1 million increase of repo transactions with non-residents.Reserves were also boosted by the net income of the Bank of Lithuania from investment in foreign exchange.