Balance of payments shows Lm32m deficit

An updated statement on the balance of payments transactions conducted by Malta in the third quarter of this year discloses an unfavourable turnaround in the current account balance of Lm40.5 million, from a net surplus of Lm8.5 million in the September 2003 quarter to a net deficit of Lm32 million in the same period in 2004, according to the National Statistics Office.

Leading towards this deterioration was essentially a worsening in the net balances of the income account, the goods account as well as the current transfers account of the statement. In fact, the net balance in the income account shifted by Lm38.9 million, from a net surplus of Lm15.7 million in the third quarter of 2003 to a net deficit of Lm23.2 million in the relative period this year.

The visible trade gap in the goods account expanded by Lm5.1 million from a net deficit of Lm65.3 million in the September 2003 quarter to one of Lm70.4 million during the same period this year.

Also, the net balance in the current transfers account deteriorated by Lm0.3 million, from a net deficit of Lm5.6 million in the September 2003 quarter to one of Lm5.8 million during the corresponding period in 2004.