As exports grow, current account surplus continues to increase

According to operational data, the growth of goods exports in March of 2010 determined the increase in the current account surplus to 130.9 million lats, which is a remarkable achievement. A small annual rise in services exports was also observed in March, mostly as a result of financial services granted. The banks accounted for the greatest flows of financing: the long-term foreign liabilities of banks shrank, but the non-resident deposits with the banks grew. The government debt grew by 346.8 million lats, which was reflected in an increase of Bank of Latvia's reserve assets.

The prognosis for the Bank of Latvia's current account surplus for 2010 is 8.1% of GDP, with the associated risks mostly downward pointing. The evaluation of foreign demand risk prognosis is affected by the recent events and financial situation in Greece, therefore a slower growth in foreign demand than predicted previously cannot be excluded.  

In order to renew and sustain macroeconomic stability, among whose indicators is the current account position, it is necessary to continue with the fiscal policy reforms as well as promote predictable fiscal policies in the future by preparing the 2011 budget in a timely manner and adopting it by the end of this year.