HELSINKI: The current account was EUR 1.6 billion in deficit in the second quarter of 2016, according to Statistics Finland’s data. The combined value of exports of goods and services compared with the corresponding period in 2015 now declined for the fourth successive quarter. In July, the decline continued as the value of exports of goods and services decreased by eight per cent. Both foreign assets and liabilities contracted in the second quarter. The net international investment position was positive as per the statistics on balance of payments and international investment position.
The current account was EUR 1.6 billion in deficit in the second quarter of the year. The deficit was generated from the services, primary and secondary income accounts. In balance of payment terms, the trade account was EUR 0.4 billion in surplus. The value of exports of goods in balance of payment terms declined by three per cent from the corresponding period one year ago and amounted to EUR 13.9 billion. The value of imports of goods in balance of payment terms grew by five per cent from the corresponding period one year ago and amounted to EUR 13.4 billion. The services account showed a deficit of EUR 0.8 billion. The value of service exports decreased by four per cent from the second quarter of 2015 and was EUR 5.2 billion. The value of service imports declined by one per cent.
The primary income account was EUR 0.8 billion in deficit, which is mainly explained by the deficit of investment income. The primary income account includes investment income like interests and dividends. The secondary income account was EUR 0.4 billion in deficit. In July, the current account was EUR 0.4 billion in deficit. Of the sub-items of the current account, the services account, the primary income account and the secondary income account were in deficit. In balance of payment terms, the trade account was in balance. The value of exports of goods in balance of payment terms declined by 11 per cent and that of exports of services by one per cent year-on-year.
The value of exports of goods in balance of payment terms decreased by seven per cent from twelve months back. In the second quarter of 2016, net capital outflow from Finland amounted to EUR 3.6 billion. Capital inflow was mostly in the form of other investments, that is, for example, as loans, deposits and trade credits from outside the group, EUR 6.6 billion on net.
Net capital outflow from Finland was mostly in the form of direct investment, EUR 6.5 billion. At the end of the second quarter, Finland had EUR 735.9 billion in foreign assets and EUR 731.9 billion in foreign liabilities. At the end of the second quarter, foreign direct investment assets on gross stood at EUR 140.8 billion and the corresponding liabilities at EUR 109.7 billion. During the second quarter of 2016, foreign direct investment assets decreased by EUR 5.6 billion and liabilities by EUR 11.2 billion.
