Current account balance remains in surplus
Balance of Payments of the Republic of Lithuania January 2020
Today, the Bank of Lithuania published the balance of payments for January 2020, which shows that:
the €105.6 million surplus on the current account balance (CAB) resulted from the decreasing yet still in surplus balances of services and secondary income that were not offset by the negative balances of foreign trade and primary income (see Chart 1). Exports and imports of services fell (by 18.0% and 18.4% respectively). The surplus on the balance of services amounted to €320.3 million. Due to the fact that the imports of goods decreased faster than exports (3.4% and 1.2% respectively), the deficit on the foreign trade balance reduced by 30.2% The deficit on the primary income balance was driven by the smaller EU subsidies for agriculture;
the deficit on the secondary income balance reduced 7.3 times over the month. Such developments were led by the increase in Lithuania’s calculated contributions to the EU budget (which amounted to €67.3 million in January) and the decrease in transfers from EU support funds (which amounted to €20.7 million in January). Private individual remittances from abroad amounted to €85.9 million, a month-on-month decrease of 11.2%. Private individual remittances from Lithuania amounted to €32.1 million, a month-on-month decrease of 11.4%;
the positive net flow of financial account investment (€86.5 million) resulted from the positive net flow of other investment, which formed due to a decrease in liabilities to non residents (see Chart 2).
Chart 1. CAB and its composite flows
Chart 2. Net financial account investment flows
Comprehensive balance of payments data are also published on the Bank of Lithuania website.
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