HELSINKI: The current account was in deficit in the first quarter of 2016 and in April as well, according to Statistics Finland. The combined exports of goods and services decreased by six per cent year-on-year in January to April, which was a continuation of the decrease seen in the second half of 2015.
There was net capital inflow to Finland and the net international investment position decreased in the first quarter, the data on balance of payments and international investment position show. In the first quarter of 2016, net capital inflow to Finland amounted to EUR 5.6 billion. Inward capital flow was mostly in the form of other investments, i.e. loans, deposits and trade credits, EUR 9.8 billion in net.
Net capital inflow to Finland in the form of portfolio investments totalled EUR 7.4 billion. Net capital outflow was largest in the form of direct investments, EUR 12.4 billion. The current account showed a slight deficit, EUR 0.2 billion, in the first quarter of 2016. The deficit was generated from the goods, service and secondary income accounts.
Exports of goods in balance of payment terms, EUR 12.4 billion, declined by eight per cent in the first quarter from the corresponding period in the year before, and imports by six per cent. In balance of payment terms, the trade account turned EUR 0.1 billion into deficit, as exports of goods declined faster than imports of goods.
The service account showed a deficit of EUR 0.2 billion in the first quarter. Exports of services remained at previous year’s level at EUR 5.4 billion as per the data. The primary income account was EUR 0.8 billion in surplus in the first quarter, which is mainly explained by the surplus of investment income.
The primary income account includes investment income like interest rates and dividends. The secondary income account was EUR 0.7 billion in deficit. In April 2016, the current account deficit was EUR 0.7 billion as all sub-items of the current account were in deficit.
Exports of goods in balance of payment terms went down by 11 per cent from twelve months back. April was the ninth consecutive month when exports of goods in balance of payment terms decreased from the corresponding month in the year before.
Imports of goods in balance of payment terms went up by four per cent in April. The goods account in balance of payment terms was in balance when in April 2015, the goods account was EUR 0.7 billion in surplus. The service account showed a deficit of EUR 0.1 billion in April 2016. Of the other sub-items, the primary income account was EUR 0.4 billion in deficit, while in April 2015, the deficit was EUR 1.6 billion.
