Finland: The current account balance swings to a surplus in July
September 19, 2018
The current account balance improved in July, hitting a surplus for the first time in nine months. This was due to the primary income account logging a surplus, which contrasted the deficit recorded in June. The remaining components of the current account—the trade balance and secondary income accounts—were in deficits in July.
The current account surplus was EUR 0.05 billion in July. This contrasted the revised EUR 0.18 billion deficit logged in June, which was previously reported as a EUR 0.44 billion deficit. However, the current account surplus was EUR 0.58 billion less in July than in the same month last year.
In the 12 months leading up to July, the current account deficit increased to EUR 2.5 billion from EUR 2.0 billion in June.
The trade balance fell to a EUR 0.18 billion deficit in July, contrasting the EUR 0.4 billion surplus in June. Exports grew 0.9% in July, down from 3.9% in June. Meanwhile, imports increased 5.9% in July, significantly up compared to June’s 0.7% growth. Faster import growth in July was driven by more purchases of oil and metals from abroad.
Finland Current Account Balance Foreast
FocusEconomics Consensus Forecast panelists expect the current account to record a surplus of 0.4% of GDP in 2018. For 2019, panelists expect a current account surplus of 0.6% of GDP.
Author: Edward Gardner, Economist