Analytics, Banks, Budget, Economics, Estonia, Financial Services

The flash estimate¹ put the Estonian current account at 251 mln euros in deficit in January 2017. The cause of the deficit was large one-off import transactions for transport vehicles. The deficit on the goods and services account was 240 mln euros. Goods exports grew by 9% and goods imports by 39%, so the deficit on the goods account widened to 342 mln euros. Exports of services increased by 12% and imports by 10%, so the surplus on the services account was larger than a year previously at 102 mln euros. The net outflow on the primary and secondary income accounts totalled 11 mln euros, which was 36 mln euros less than a year earlier.

The current and capital accounts were in deficit by a total of 220 mln euros in January, meaning Estonia was a net borrower from the rest of the world. Loan liabilities increased and other investment assets were reduced in order to finance the deficit.