Provisional figures on the balance of payments transactions conducted by Malta during the first quarter of the current year reveal an improvement in the current account balance of Lm11.8 million, from a net deficit of Lm61 million during the January to March 2006 quarter to one of Lm49.2 million during the same period this year, the National Office of Statistics reported yesterday.
Contributing to this amelioration was essentially a contraction of the visible trade gap in the goods account of Lm34.9 million, from a net negative balance of Lm115.1 million during the first quarter of 2006 to one of Lm80.2 million during the corresponding quarter this year. This was the outcome of an increase in revenue from merchandise exports of Lm15.1 million as well as a decline in outlays on merchandise imports of Lm19.7 million.
On the other hand, the net balance in the current account was adversely affected by unfavourable shifts in the net balances of all the other main accounts that compose the statement. The net positive balance in the current transfers account decreased by Lm14.3 million, from a net surplus of Lm58.3 million during the March 2006 quarter to one of Lm44 million during the same period in 2007; while that in the services account declined by Lm4.7 million, from a net surplus of Lm12.8 million during the first quarter of 2006 to one of Lm8.1 million during the relative period this year. Also, the net negative balance in the income account deteriorated by Lm4.1 million, from a net deficit of Lm17 million during the January to March 2006 period to one of Lm21.2 million during the corresponding period in 2007.
As regards the capital and financial account of the statement, this was characterised by net inflows of Lm76.3 million as opposed to net inflows of Lm94.7 million during the March quarter last year.
The capital account was marked by net inflows of Lm1.7 million as against net inflows of Lm11.1 million during the first quarter of 2006; while the financial account was shaped by net inflows of Lm74.6 million as opposed to net inflows of Lm83.7 million during the first three months of last year.
The direct investment abroad was characterised by net inflows of Lm2.6 million as against net outflows of Lm0.8 million during the January to March 2006 period; while the direct investment in Malta was marked by net inflows of Lm61.1 million as opposed to net inflows of Lm60.5 million during the same period last year.
Additionally, the reserve assets of the country declined by Lm61.5 million as against a fall of Lm55.8 million during the first quarter of 2006.
Provisional indicators on the balance of payments transactions of Malta with the European Union (EU) during the first quarter of 2007 show that the country had a current account deficit of Lm86.2 million. This was higher by Lm9.1 million over the Lm77.1 million recorded during the same period in 2006. On the other hand, the current account balance of Malta with the rest of the world countries stood at a net surplus of Lm37 million; an increase of Lm20.8 million over that recorded during the corresponding period a year ago.
The worsening in the current account balance of Malta with the EU was primarily contributed by a deterioration in the net balance of the current transfers account and the income account of Lm9.4 million and Lm5.3 million respectively. On the contrary, the improvement in the current account balance of Malta with the extra-EU countries emanated primarily from a contraction of the visible trade gap in the goods account of Lm27.3 million.