In November 2011, current account close to balanced
In November 2011, the current account surplus was at 1.2 mil. lats. In the foreign trade of goods a drop in goods imports was observed in Latvia and, albeit the goods exports dropped simultaneously, the overall negative balance in foreign trade of goods diminished to 96.7 mil. lats. The positive balance of foreign trade of services increased to 85.6 mil. lats, with this trend affected by the growth in the financial services and various other economic services granted to foreigners. In the revenue account, there were no significant changes, its negative balance was at 14.4 mil. lats.
The positive balance of the current transfers account dropped to 26.7 mil. lats in November, for Latvia paid more into the EU budget than in previous months. The financing received from EU funds, which are reflected in the current transfers and capital account, exceeded the payments into the EU budget almost threefold, however.
The financial account balance turned negative in November (11.7 mil. lats); compared to previous months, foreign direct investments in Latvia were slightly smaller and reserve assets also diminished as the Government increased foreign exchange conversions and secured a loan to the Deposit Guarantee Fund.