Estonian current account was in deficit in February

The flash estimate1 put the Estonian current account at 42 million euros in deficit in February 2016. This was mainly because the deficit on the goods account was larger than in February 2015. Although exports of goods were some 2.5% up on a year earlier, imports were up 5.6% over the same period. The small increase in the surplus on the services account was not enough to offset the deficit on the goods account. Total spending by Estonian residents on foreign travel in February was more than spending by non-residents visiting Estonia, meaning that the balance on the travel services account was negative. Flows of transport services declined further, while exports of all other services increased and imports fell. The positive balance on the capital account meant that the total of the current and capital accounts was positive, which was not the case in January.

Eesti Pank is publishing the flash estimate of the balance of payments monthly for the last month but one. Eesti Pank will publish the balance of payments for 2016 on 9 June 2016.

1 The quarterly balance of payments is compiled from a combined system of representative primary data sources, including surveys of companies, while the monthly balance of payments draws from a considerably smaller database. Although the monthly report uses as much data available for the month reported as possible, including administrative data sources and reports on international payments, it is subjective to a certain degree, which is why it is called an estimate. Once the quarterly balance of payments is released, the monthly balances of payments are adjusted accordingly.

Source: Bank of Estonia (see graph here)

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