Finland: Finland logs a current account deficit for the third consecutive month in May
June 15, 2018
The current account balance improved in May but nevertheless remained in deficit for the third consecutive month. This was due to the primary and secondary income accounts logging outflows, according to data from Statistics Finland.
The current account balance was minus EUR 0.52 billion in May, a significant increase from April’s revised EUR 1.6 billion deficit (previously recorded: EUR 0.94 billion deficit). The current account balance was, however, EUR 0.5 billion less than that recorded in the same month last year.
In the 12 months leading up to May, the current account surplus fell to EUR 0.1 billion from April’s EUR 0.6 billion.
The trade balance fell to EUR 0.12 billion from EUR 0.37 billion in April. Exports fell 4.6% compared to the same month a year earlier, representing a contrast with the 19.0% expansion in April and the biggest annual decrease since July 2016. The weak reading was primarily due to a low base effect because, unlike in May last year when there were major exports of cruise liners and airplanes recorded, there were no such large deliveries this time around. Meanwhile, imports grew 2.7% in May, less than the 9.4% expansion in April.
Author: Edward Gardner, Economist