current account

In the third quarter, the current account deficit of Latvia's balance of payments amounted to 138.5 million lats or 3.8% of the forecast GDP.

September 2011, the current account surplus was 1.1 mil. lats. The current account balance was also positively affected by the changes in the income account. The goods and services trade negative balance, which increased by 8.6 mil. lats month-on-month, was primarily affected by the rise in services imports with a simultaneous slight drop in services exports. The goods trade negative balance did not change substantially. Net inflows were registered in the financial account whose balance reached 24.6 mil. lats.

In August 2011 the current account surplus was at 21.0 mil. lats. The improvement in the current account balance compared to July was significantly impacted both by the shrinking in the negative trade balance and the inflows of EU funding which exceeded the levels of the previous two months.

In July 2011, the Latvian balance-of-payments current account deficit increased to160.0 mil. lats, and the increase was primarily accounted for by the substantial purchases of capital goods made by several enterprises.

In the second quarter of 2011, the current account of Latvia's balance of payments recorded a surplus of 31.8 million lats or stood at 0.9% of GDP forecasts, i.e. close to the level in the previous quarter[1].

In June, as the reinvested profits of foreign direct investment companies increased and the goods trading balance deteriorated as a result of goods purchases transactions, the current account balance was negative (-61.9 mil. lats). Yet in the second quarter and first six months of 2011, by monthly data, the current account balance was positive. In the first six months, it could amount to 1.4% of the forecast GDP. (The publication of Latvia's balance of payments second quarter data is expected on 2 September.)

In May 2011 Latvia's balance of payments current account surplus increased to 56.5 mil. lats, primarily on account of the inflows of received EU funding.

The current account surplus in April reached 41.3 mil. lats. The substantial month-on-month improvement was primarily fostered by the improved trade balance. The goods and services foreign trade balance was positive in April at 4.5 mil. lats. As goods imports contracted at a notably faster pace than exports, the goods trade deficit contracted by more than 40 mil. lats, but a small positive balance increase in the service sector was determined by a successful development of cargo transport services by rail.

In the first quarter of 2011, the current account surplus of Latvia's balance of payments reached 52.7 million lats or 1.7% of the forecast GDP. Both goods and services trade balance and income balance improved quarter-on-quarter.

According to the monthly data, in the first three months of 2011 combined, the current account surplus was 36.8 mil. lats, with March posting a small deficit in the amount of 17.1 mil. lats. The current account deficit in March was substantially affected both by the negative balance of the income account and the increase in the negative balance of goods trade transactions.