Current account balance still negative in April
As the external trade activity continued to drop, Latvia's current account continued to post a deficit (63.1 mil. lats) also in April of this year.
The goods external trade negative balance increased to 158.5 mil. lats, for goods exports dropped at a faster rate month-on-month than goods imports. The services external trade balance dropped to 63.4 mil. lats, since the value of transport services by air, sea and rail was slightly smaller.
The positive balance of the finance account rose to 27.4 mil. lats. The foreign direct investment attracted remained at the level of the previous months, growing by 36.9 mil. lats. Through the current transfer and capital account a total of 44.0 mil. lats was received in April from EU funds, whereas Latvia paid 12.0 mil. lats into the EU budget.
In recent months, the development of Latvia's external trade was impeded by the drop in external demand, which was reflected both in the lowered credit ratings of some of Latvia's trade partners and the deteriorated business and consumer confidence indicators both in Latvia and the European Union at large. It can be expected, however, that the drop in oil prices that has an impact on the drop in the value of imported goods, will have a positive effect on Latvia's balance of payments and the deficit in the current account will not grow substantially in the coming months.