Current account surplus grew in January

According to operational data, the current account surplus in January was 64.8 million lats. With both exports and imports contracting over a year, the goods and services account was close to balanced.

The annual drop in exports of services was almost 20%, affected by neighbouring countries competition in cargo services as well as a lower export of travel services, whereas passenger transport by air had an increasing effect. The greatest flows of capital were determined by banks that used their short-term assets and increased their short-term liabilities to repay longer term loans from related foreign banks.

This year a further increase in goods exports will have a positive effect on the current account surplus, whereas losses (expected lower than last year) of direct investment companies will have a decreasing effect.