Last Thursday, the Bank of Lithuania published its balance of payments updated to August 2021. The current account surplus (CAB) of €168.5 million replaced the deficit recorded in July. The CAB surplus is the result of a higher surplus in the balance of services, the balance of secondary income which despite the decline remained in surplus, as well as a significant reduction in the external balance. Since foreign trade exports increased by 9.0% and imports decreased by 1.7%, the foreign trade deficit contracted to 145.8 million. With the increase in exports and imports of services (by 3.6% and 5.1%, respectively), the surplus of the services balance increased (by 1.4%), amounting to 427.7 million.

The balance of secondary income remained in surplus, amounting to 28.0 million. Transfers from European Union support funds (24.8 million) decreased by 24.6%, while Lithuania’s calculated contributions to the EU budget (36.0 million) increased by 75.4% compared to July. Personal transfers from abroad amounted to 49.8 million, with a monthly decrease of 8.9%. Personal transfers from Lithuania amounted to 18.6 million, up 1.9% on a monthly basis.

In the second quarter of the year, the current account balance was in deficit, unlike the previous quarter, which played 149.0 million, 1.1% of gross domestic product. This was driven by a significant increase in external trade deficits and the primary income balance, not offset by an increase in surplus balances of services and secondary income. Due to faster growth in imports of goods (18.1%), compared to that of their exports (9.9%), the foreign trade deficit had increased to 898.2 million. A year ago, the CAB was in surplus at 724.5 million, or 6.3% of GDP.