Transactions on the financial account set the tone for the balance of payments in June
The flash estimate1 put the Estonian current account at 39 million euros in surplus in June 2015. Exports of goods were the same as a year ago, but the inflow of primary income2 was smaller. Imports of goods and the outflow of primary income were both less than in June 2014, while imports of services increased. The inflow of foreign aid through the capital account also increased, making the surplus on the current and capital accounts (net lending) stand at 63 million euros.
As there was a large volume of equity transactions, there was a reduction in both direct investment assets and liabilities on the financial account. The portfolio investment assets of credit institutions declined, but this was balanced by an increase in other investment assets. Companies issued new bonds, and this led portfolio investment liabilities to grow by more than usual.
The other investment assets of the central bank increased because of the inflow of resources from Estonian credit institutions. The banks deposited at the central bank additional resources that had been generated by the reduction in the portfolio investment assets of other sectors and by the deposits of companies and households. Other liabilities increased because credit institutions declared dividend payments but haven’t paid them out yet.
Eesti Pank is publishing the flash estimate of the balance of payments monthly for the last month but one. The statistics on the second quarter of 2015 will be published with a comment on 8 September.
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.
2The primary income account reflects primary income from capital and labour as production factors used or available for use and other primary income from production and import taxes, subsidies and rent of natural resources.
Eesti Pank Statistics Department
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