Finland: The current account balance returns to a deficit August
October 16, 2018
The current account balance fell back into a deficit in August. This was primarily due to a weaker primary income account surplus, coupled with another deficit in the secondary income account.
The current account deficit was EUR 0.10 billion in August. This contrasted the EUR 0.05 billion surplus logged in July. However, the deficit in August this year was less than the EUR 0.32 billion shortfall recorded in the same month last year.
In the 12 months leading up to August, the current account deficit fell to EUR 2.3 billion from to EUR 2.5 billion in July.
In addition to the primary and secondary income accounts, the trade balance makes up the final piece of the current-account puzzle. In August, the trade balance improved to a deficit of EUR 0.02 billion from a EUR 0.17 billion deficit in July. Exports grew 3.8% in August, up from 0.9% in July. Imports increased 7.8% in August, up from 5.9% in July.
Finland Current Account Balance Forecast
FocusEconomics Consensus Forecast panelists expect the current account to record a surplus of 0.0% of GDP in 2018. For 2019, panelists expect a current account surplus of 0.3% of GDP.
Author: Edward Gardner, Economist