Current account deficit hits Lm100m

Early statistical indicators on the international economic and financial transactions of Malta with its world trading partners show a deterioration in the current account balance of Lm58 million, from a net deficit of Lm42.2 million during the fourth quarter of 2003 to one of Lm100.2 million in the corresponding quarter last year, the National Statistics Office said yesterday.

This was caused mainly by a deterioration in the net balances of both the goods account as well as the services account. Indeed, the visible trade gap in the goods account expanded by Lm59.3 million, from a net deficit of Lm56.1 million in the December 2003 quarter to one of Lm115.3 million during the comparable period in 2004. The net balance in the services account worsened by Lm13.9 million, from a net surplus of Lm37.9 million in the last quarter of 2003 to one of Lm24 million during the December quarter in 2004.

The net balance in the current transfers account deteriorated by Lm0.4 million, from a net deficit of Lm8.8 million during the fourth quarter of 2003 to one of Lm9.2 million in the same period last year.