Finland: Current account deficit widens to a multi-decade high
June 14, 2019
The current account balance slumped to a EUR 4.2 billion deficit in April, deteriorating from March’s revised EUR 0.24 billion shortfall (previously reported: EUR 0.47 billion deficit) and representing the lowest reading since contemporary records began in January 2006.
The main reason for April’s slump was a massive downturn in the primary income account balance, which was itself caused by a strong increase in investment income debits on the back of international company restructurings at the end of last year.
In the 12 months leading up to April, the current account balance totaled a EUR 5.3 billion deficit, representing a deterioration from the EUR 1.9 billion shortfall in March.
The trade balance fell to a EUR 0.2 billion deficit in April, contrasting the EUR 0.2 billion surplus in March. Exports fell 8.1% in April, down from the 1.5% decline in March, while imports rose 6.2%, contrasting March’s 5.2% fall.
Author: Edward Gardner, Economist