Balance of Payments in November 2010: current account surplus slightly on the rise
The current account surplus in November grew to 36.1 mil. lats, as the volume of current transfers increased.
The trade balance of goods and services was close to balanced (-5.4 mil. lats) in November and the rise in goods exports over October was similar to that in imports. The rise in imports was primarily accounted for by intermediate goods (mechanisms and mechanical equipment, electrical appliances etc.) and the import of vehicles. The positive contribution of services balance in the overall trading balance was smaller in November.
The performance of foreign direct investment enterprises (both in the banking sector and in other industries) continue to improve: in November, their total reinvested profits were 17 mil. lats, which was reflected in the increase of the income account deficit.
The surplus in the current account in November was determined by the increase in current transfers, with subsidies for products from the European Agricultural Guidance and Guarantee Fund (38.2 mil. lats) and other inflows of EU funds dominating.
Significant inflows of investment in the financial account were not observed in November, yet the confidence of non-residents in the Latvian banking sector, evidenced by the amount of non-resident deposits, was a positive sign.