Current account positive, overall balance of exports and imports posts a small surplus

In May 2010, the current account surplus reached 82.1 million lats, with exports exceeding imports by 5.3 million lats. Exports of services exceeded their imports while exports of goods were lower than their imports; nevertheless, the overall balance was positive.

Exports of services posted a somewhat lower year-on-year level as a result of moderating freight transportation and travel services; however, a higher level of passenger transportation by air as well as the EU funds received by the government made a considerable positive contribution to the current account surplus. Services data suggest that on account of decreasing income, people prefer to spend less during their travel rather than cut the number of trips.

It is highly likely that similar trends in services trade will persist also in the coming months. As to the overall annual forecast, a surplus of the current account is still expected, albeit smaller than last year due to lower private sector (foreign investors) losses. The overall balance of exports and imports will be close to balance.