Analytics, Banks, Financial Services, Lithuania, Statistics

The surplus on the current account balance (CAB) amounted to 136.8 mln euros and, compared to July, increased by 21.7%. Its build-up was driven by the positive secondary income balance and the smaller yet still positive balance of services, which were not offset by the negative foreign trade and primary income balances (see Chart 1). With import and export of goods growing 6.4% and 6.3% respectively, the deficit on the trade balance increased by 9.1%, to stand at 120.7 mln euros. Due to the rise in other investment income, the deficit on the primary income balance decreased by 9.9% month on month.

The surplus on the secondary income balance increased by 40.2% over the month. In August, transfers from EU funds amounted to 51.9 mln euros, while Lithuania’s calculated contributions to the EU budget – 27.9 mln euros. Private individual remittances from abroad amounted to 95.4 mln euros, narrowing by 2.0% on a month on month basis. Private individual remittances from Lithuania amounted to €37.6 mln, decreasing by 0.2%.

The negative net flow of financial account investment (5.3 mln euros) resulted from the negative net flow of portfolio investment, which was not offset by the positive flows of direct and other investment as well as the increase in official reserve assets (see Chart 2).