Croatia’s current capital account surplus increases in third quarter
ZAGREB (Croatia), Dec.31 (SeeNews) – Croatia’s balance of payments current and capital account posted a surplus of 4.7 billion euros ($ 3.1 billion) in the third quarter of this year , against a surplus of 2.2 billion euros in the same period of 2020, mainly thanks to a sharp increase in tourism receipts, the central bank announced on Friday.
“The surge in the surplus, which almost reached the record level of the third quarter of 2019, is mainly due to the noticeable increase in revenues from travel services and, to a much lesser extent, to the increase in net revenues of remittances and better use. EU funds, ”the central bank said in a statement.
The increase in the current account and capital account surplus was mitigated by the continued worsening of the trade deficit and, to a lesser extent, by higher profitability of banks and foreign-invested enterprises, which was associated the rapid national economic recovery after the pandemic crisis and the rebound in domestic demand.
The current account and capital account surplus over the four-quarter period to end-September 2021 totaled 6% of gross domestic product, 3.9 percentage points higher than for 2020 as a whole , he added.
Imports of goods grew faster than exports, 29.4% from 24.4%, in the third quarter of 2021, which, together with a significantly larger import base, resulted in a substantial increase in the trade deficit of 800 million euros compared to the same period of 2020.
In line with the sharp increase in the current account and capital account surplus, the balance of payments financial account recorded a net capital outflow of 4.2 billion euros in the third quarter of 2021, an increase by 2.2 billion euros compared to the same period last year. year. Broken down by individual accounts, this year’s net capital outflows are largely the result of the growth in gross international reserves and, to a lesser extent, the net outflows recorded in other investment and portfolio investment accounts, while that foreign direct investment recorded a net inflow in the same period.
Croatia’s balance of payments details follow (in millions of euros):
|Q3 2021||Q3 2020|
|CURRENT ACCOUNT BALANCE||4,380||2.00|
|of which: tourism income:||6,775||3 389|
|CURRENT ACCOUNT and CAPITAL||4,706||2 237|
|FINANCIAL ACCOUNT||4 160||1,913|
|Other investment||1 411||-184|
|NET ERRORS AND OMISSIONS||-545||-324|
($ = 0.882 euro)