The current account deficit widened in March
The flash estimate1 put the Estonian current account at 58 million euros in deficit in March 2016. The increase in the deficit was driven most by the widening of the deficit on the goods account to 114 million euros. Exports of goods were 0.4% down on a year earlier, 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 deficit on the goods account, and the balance of goods and services was negative by 10 million euros. 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 March 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.
Eesti Pank is publishing the flash estimate of the balance of payments monthly for the last month but one. Eesti Pank will publish the balance of payments for the first quarter of 2016 on 9 June 2016.
1 The quarterly balance of payments is compiled from a combined system of representative primary data sources, including surveys of companies, while the monthly balance of payments draws from a considerably smaller database. Although the monthly report uses as much data available for the month reported as possible, including administrative data sources and reports on international payments, it is subjective to a certain degree, which is why it is called an estimate. Once the quarterly balance of payments is released, the monthly balances of payments are adjusted accordingly.
Eesti Pank Statistics Department
Telephone: +372 668 0906
Email: synne.korasteljov [at] eestipank.ee