During the second quarter of 2009, Malta registered a net surplus in the current account statement of €212.7 million, the National Statistics Office reported yesterday.
Provisional figures on the Balance of Payments statement of Malta for the second quarter of 2009 disclose a current account surplus of e212.7 million. Indeed, this implies an improvement in the current account balance of e359.7 million over the net deficit of e147.0 million registered during the corresponding June quarter last year.
Generating this amelioration in the current account balance was essentially an across-the-board improvement in the net balances of the main accounts that compose the current account statement.
The goods account registered a contraction in the visible trade gap of e130.1 million, from a net deficit of e336.1 million during the June 2008 quarter to one of e206.0 million during the same period this year; whilst the net positive balance in the current transfers account improved by e127.6 million, from a net surplus of e61.0 million during the second quarter of 2008 to one of e188.6 million during the relative period in 2009. Likewise, the net negative balance in the income account shrunk favourably by e77.5 million, from a net deficit of e100.9 million during the June 2008 quarter to one of e23.4 million during the quarter under review; whereas the net positive balance in the services account increased by e24.5 million, from a net surplus of e229.0 million during the second quarter of 2008 to one of e253.5 million during the same period this year.
The net balance in the goods account was influenced by a notable fall in import outlays of e259.2 million that more than offset the adverse drop in export receipts of e129.1 million; whereas the net balance in the current transfers account was affected by a sharp increase in government receipts that outweighed entirely the unfavourable rise in government payments registered during the period under consideration. Also, the net balance in the income account was favourably influenced by a fall in interest payments paid abroad as well as by a drop in the retained earnings of foreign-owned local enterprises that, together, were higher than the fall in interest revenues earned from abroad and the increase in dividend payments allotted to direct investors of foreign-owned enterprises operating in Malta. In addition, the net balance in the services account was characterised by an improvement of e50.9 million in the net balance of the other services account that more than offset the deterioration of e9.1 million and e17.2 million recorded respectively in the net balances of the transport account and the travel account of the statement.
In the capital and financial account of the statement, the capital account was marked by net inflows of e7.7 million as against net inflows of e8.1 million during the second quarter of 2008; whereas the financial account was shaped by net outflows of e405.0 million as opposed to net inflows of e250.4 million during the April to June period last year.
The direct investment abroad recorded net outflows of e18.3 million as against net outflows of e38.8 million during the June 2008 quarter; whereas the direct investment in Malta registered net outflows of e45.5 million as opposed to net inflows of e125.4 million during the second quarter of 2008.
The portfolio investment account was characterised by net outflows of e327.4 million as against net outflows of e1,415.5 million during the June 2008 quarter, whereas the financial derivatives account was marked by net inflows of e67.6 million as opposed to net inflows of e108.6 million during the April to June period last year. The other investment account was marked by net outflows of e23.8 million as against net inflows of e1,424.6 million during the second quarter of 2008.
During the period under review, the reserve assets of Malta increased by e57.7 million as against a drop of e46.1 million during the corresponding June quarter last year.