External economic and financial transactions down by €129 million

The National Statistics Office (NSO) said that provisional figures of Malta's external economic and financial transactions for the third quarter reveal a surplus of €127.3 million in the current account balance, down by €128.9 million when compared to the corresponding period a year ago.

The services account was the highest contributor to the surplus, with the travel account providing a net balance of €334.9 million as travel receipts increased by €39.0 million over the corresponding period last year.

Net income from the "other services" contributed €211.1 million, while the transport account showed a negative balance of €21.6 million. The current transfers account also contributed favourably to this year's surplus, improving by €14.2 million.

The negative balance of the goods account increased by €46.3 million to €293.0 million. This resulted from increases in exports of €56.7 million and of €103.0 million in imports.

The income account also contributed negatively to the surplus, with a net negative balance of €117.8 million. This was mainly due to income on equity (profits registered by foreign-owned companies).

The capital account registered a net inflow of €59.9 million in the third quarter this year. An increase in receipts from EU Funds led to a rise of €31.4 million compared to the corresponding quarter last year.

The financial account registered a net outflow of €190.2 million in the quarter under review when compared to a net outflow of €6.6 million a year ago.

Foreign direct investment in Malta registered net inflows of €31.0 million in quarter three, a decrease of €10.6 million over last year's, and direct investment abroad decreased by €59.3 million during the quarter under review.

The portfolio account registered net outflows of €451.5 million, a decrease of €517.8 million over net outflows recorded a year ago, while the other investment account recorded net inflows of €159.0 million, a decrease of €722.0 million over net inflows last year. The above transactions led to a decrease of €24.5 million in the reserve assets of Malta.

The current account deficit with the EU continued to expand, registering €216.3 million as compared to that recorded last year which amounted to €41.5 million.

The increase was mainly due to a rise in imports of goods coupled with an increase in net outflows in the income account. On the other hand, the positive balance with the rest of the world continued to improve. This mainly results from the improvement in the goods account, with an increase in exports and a decrease in imports.