Finland: Current account records highest deficit in eight years
June 14, 2013
In April, the current account posted a deficit of EUR 1.4 billion, which was higher than both the EUR 344 million deficit observed in March (previously reported: EUR 471 million) and the EUR 1.1 billion shortfall recorded in the same month last year. The reading represents, in fact, the largest current account deficit seen since April 2005.
The trade balance registered a surplus of EUR 173 million in April, which contrasts the EUR 12 million deficit seen in March and overshot the EUR 78 million surplus observed in the same month last year. The result came on the back of a rebound in exports, which expanded 2.3%, contrasting the 11.5% fall recorded in March. In addition, imports rose 0.3% in April (March: -9.6% year-on-year).
Building on the negative reading, in the 12 months up to April the current account balance recorded a EUR 2.9 billion deficit (approximately 1.6% of GDP), which was higher than the EUR 2.5 billion shortfall seen in the 12 months up to March.
FocusEconomics Consensus Forecast panellists expect the current account to reach a deficit of 1.3% of GDP this year, which is down 0.2 percentage points from last month's forecast. For 2014, the panel expects the current account deficit to remain at 1.1% of GDP.