Malta’s current account balance remained practically at the previous year's deficit of €169.2 million, the National Statistics Office said.
It said provisional figures on Malta’s international economic and financial transactions in the last quarter of 2010 show a current account deficit of €169.4 million, practically unchanged over the net deficit registered a year earlier.
On an account by account basis, the goods account of the statement recorded an expansion in the visible trade gap of €56.8 million, from a net negative balance of €223.5 million during the fourth quarter of 2009 to one of €280.3 million during the period under review.
Similarly, the income account registered an increase in the net deficit of €9.1 million, from a net negative balance of €102.9 million during the December 2009 quarter to one of €111.9 million during the fourth quarter in 2010.
The goods account was affected by a rise in import outlays of €170.3 million that eclipsed the increase in export revenue recorded during the December 2010 quarter of €113.5 million; whereas the income account was essentially influenced by a rise in interest payments to non-resident entities abroad that exceeded the increase in interest receipts registered during the period under review.
In contrast, the net surplus balance in the services account improved by €40.2 million to a net positive balance of €186.1 million.
Also, the net surplus balance in the current transfers account advanced by €25.5 million to a net positive balance of €36.8 million during the corresponding three months in 2010.
The services account was affected by improvements in the net surplus balances of the other services account and the travel account that completely overshadowed the deterioration registered in net balance of the transport account of the statement; while the current transfers account was influenced by an increase in government transfer earnings from abroad that more than offset the rise in government transfer payments to non-residents recorded during the last quarter of last year.
In the capital and financial part of the statement, the capital account was marked by net inflows of €43.7 million as against net inflows of €57.2 million recorded during the December 2009 quarter; while the financial account was characterised by net inflows of €50.7 million as compared to net inflows of €142.9 million during the last quarter in 2009.
The direct investment abroad was marked by net outflows of €10.8 million as against net outflows of €24.7 million measured during the October to December period in 2009; while the direct investment in Malta recorded net inflows of €176.7 million as compared to net inflows of €136.6 million gauged during the last quarter in 2009.
The portfolio investment account registered net outflows of €571.9 million as compared to net outflows of €841.7 million reported during the fourth quarter of 2009; whereas the financial derivatives account recorded net outflows of €35.2 million as opposed to net inflows of €6.8 million measured during the December quarter in 2009.
In contrast, the other investment account was marked by net inflows of €474.7 million as compared to net inflows of €889.9 million registered during the October to December period in 2009.
As a direct consequence of all these shifts in the statement, the reserve assets of the country dropped by €17.1 million as opposed to a rise of €24.0 million reported during the December quarter in 2009.