Banks, Estonia, Financial Services, Foreign trade
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Thursday, 28.03.2024, 09:02
Estonia's current account gap widens to EUR 58 mln in March
The increase in the deficit was influenced most by the widening of the deficit on the goods account to 114 million euros. Exports of goods declined by 0.4% in annual comparison while imports were up 1.8% over the same period. Although the surplus on the services account increased by 22% over the year to 105 million euros, it was not enough to compensate for the goods account shortage, and the balance of goods and services was negative by 10 million euros, the Bank of Estonia said.
The net outflow of investment income and other income in the primary and secondary income account was 49 million euros in March, which is 7 million euros more than in the same month last year. The main reason for this was an increased outflow of direct investment income. Several dividends were announced in March, which left reinvested income below its usual level.
Despite the positive balance on the capital account, the total of the current and capital accounts was negative in March. This means that the Estonian economy was a net borrower from the rest of the world, so the country as a whole received more funds from abroad than it invested there, the central bank said.