Malta’s current account balance showing net surplus of €9.8 million
During the last quarter of 2012, Malta's current account balance showed a net surplus of €9.8 million, the NSO says
According to figures released by the National Statistics Office, early indicators on Malta's current account during the fourth quarter 2012 reveal a slight deterioration in the current account surplus of €8.6 million, from €18.4 million during the December 2011 quarter to one of €9.8 million during the period under review.
Contributing towards this decline was essentially a worsening in the net balances of all accounts except for the services account of the statement, the NSO said.
The income account was primarily affected by the two-fold effect of an increase in dividend payments to foreign entrepreneurs having direct ownership in resident enterprises, as well as by an increase in the retained earnings kept in their business activities.
Additionally, the goods account was influenced by a fall in export receipts of €72.1 million, coupled by a drop in import outlays of €48.9 million.
On the contrary, the services account was affected by favourable improvements in all the net balances of its components.
In the capital and financial account of the statement, the capital account recorded net inflows of €17.7 million as compared to net inflows of €8.1 million a year before.
The financial account registered net outflows of €106.8 million as against net outflows of €168.3 million during the fourth quarter of 2011.
During the period under review, direct investment in Malta increased by €68.6 million, while direct investment abroad declined by €34.9 million.
The portfolio investment account was marked by net outflows of €584.9 million, while the other investment account was shaped by net inflows of €394.3 million. The financial derivatives account recorded net outflows of €18.2 million.
As a result of the above movements in the accounts of the statement, the reserve assets increased by €1.6 million as compared to a drop of €6.4 million during the last three months of 2011.
During the last quarter, Malta's current account balance with the European Union improved by €7.9 million, while the balance with the rest of the world worsened by €16.5 million.