Malta’s external transactions registered a deficit of €42.6 million in the first quarter of this year, compared to surplus of €29.8 million  in the same period last year.

The National Statistics Office said the deficit was primarily the result of negative net balances recorded in the goods account (€369.0 million) which was partly offset by a positive net balance of €608.8 million recorded in the services account.

During the first quarter of 2021, the capital account registered a positive net balance of €7.2 million, €16.1 million lower than the figure recorded in 2020. The financial account was shaped by net asset increases of €57.6 million, an increase in the balance of net assets of €159.2 million when compared to the value recorded in the same quarter of 2020.

The development in the financial account balance was mainly brought about by positive net asset balances in portfolio investment (€1,621.8 million) and other investment (€468.9 million). This was partly offset by negative net asset balances recorded in direct investment (€1,958.9 million) and financial derivatives (€112.7 million).

Reserve assets increased by €38.4 million during the same period.