Bosnia’s current account deficit shrank 32.5% y/y to BAM 384.6mn (EUR 197mn) in January-March, mainly on the back of narrowing foreign trade gap and better services income, mainly FDI, central bank data showed.
Exports rose 12.6% y/y to BAM 1.2bn in January-March, on growing manufacturing and electricity sales (low prior-year base played a role). Imports edged down 0.5% to BAM 3bn over the period. As a result, the foreign trade deficit to GDP ratio retreated to 6.3% (BAM 1.8bn) in Q1 from 7.3% of (BAM1.9bn) a year earlier. Higher surpluses in the service (up 4.1% to BAM 483mn) and primary income accounts (up 56% to BAM 109mn) also contributed to the Q1 CA gap narrowing.
The net current transfers fell 3.1% y/y to BAM 783mn due to lower pensions from abroad. Private remittances recorded a mild 1.9% increase to BAM 460mn in January-March.
The surplus of the financial account shrank 43% to BAM 335mn in Q1, reflecting portfolio and other investments net outflow. This was partly offset by a strong increase of net FDI which jumped to BAM 283mn in Q1 from BAM 103mn a year earlier. They covered over 73% of the current account deficit.
The central bank revised all balance of payments data in 2012 in accordance with the IMF’s sixth edition of the Balance of Payments and International Investment position Manual (BP6), the bank said earlier.
|Bosnia's balance of payments (BAM mn)||Q1 12||Q1 13||y/y, %|
|Foreign trade balance||-1912.2||-1760.3||-7.9|
|Net errors and ommissions||-83.6||-9.5||-88.6|
|*includes current transfers between residents and non-residents|
|**calculated as assets abroad (outflow) minus liabilities (inflow)|
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