Kosovo's Jan-Jun current account gap up 4.2% y/y to EUR 147.6mn

By bne IntelliNews October 11, 2013

Kosovo's current account gap widened 4.2% y/y to EUR 147.6mn in the first half of 2013 as a result of a smaller net current transfers' surplus in Q2, preliminary data released by the central bank showed.

The merchandise trade gap inched up 0.2% on the year to EUR 923.7mn in H1, whereas the balance of services posted a surplus of EUR 137.9mn, up 7% y/y. On the other hand, the surplus on the income balance shrank 8.4% y/y to EUR 74.9mn.

Furthermore, the net current transfers surplus edged down 1.1% y/y to EUR 563.3mn in Jan-Jun due to smaller donor grants to the government of Kosovo. However, the value of remittances of Kosovar citizens living abroad rose 4.2% y/y to EUR 272.4mn.

Tourism revenue during the first six months of the year increased 8.6% y/y to EUR 144.3mn, while spending on tourist services abroad climbed 17.9% y/y to EUR 27.4mn. Accordingly, the Jan-Jun net tourism revenue went up 6.7% y/y to EUR 116.8mn.

The capital account posted a surplus of EUR 12.7mn in the first half of 2013, improving from EUR 1.6mn recorded a year earlier.

Meanwhile, the financial account surplus surged 59.7% y/y to EUR 143mn on the back of higher investment inflows in the country - up 66.4% y/y to EUR 143.4mn. As a result net FDI increased 75.6% y/y to EUR 137.8mn. The net portfolio investment registered the biggest deterioration in the financial account as its deficit more than doubled to EUR 136.2mn.

Finally, Kosovo's Jan-Jun 2013 balance of payments posted a surplus of EUR 8.3mn, which was 66.7% smaller than a year earlier.

Kosovo's BoP, EUR mn Q2 2012 Q2 2013 Change y/y
Current Account -141.7 -147.6 4.2%
Goods balance -921.7 -923.7 0.2%
Services balance 128.8 137.9 7.0%
Income balance 81.8 74.9 -8.4%
Net current transfers 569.4 563.3 -1.1%
Capital Account 1.59 12.7 704.0%
Financial Account 89.6 143.1 59.7%
Net FDI 78.5 137.8 75.6%
Net Errors and Omissions 50.6 -9.1 -118.1%
OVERALL BALANCE 24.9 8.3 -66.7%
Source: Kosovo c-bank      

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