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      

Related Articles

Kosovan MP arrested over suspected visa scam

A member of Kosovo’s ruling coalition was arrested on October 16 on suspicion of being involved in a visa scam.  Kosovo is the last country in Europe whose nationals still require visas to ... more

Construction of Nis-Pristina "highway of peace" to start in 2018

The construction of a highway between the largest town in northern Serbia, Nis, and Kosovo’s capital Pristina, will start in 2018, Serbia’s Deputy Prime Minister and Minister of Construction, ... more

Kosovan parliament elects new government led by ex-KLA commander Haradinaj

Kosovo’s parliament voted in the new government led by ex-prime minister and former guerrilla leader Ramush Haradinaj on September 9. This ends the political deadlock in Kosovo following the ... more

Dismiss