although, compared to September, the deficit on the current account balance (CAB) narrowed significantly from €276.2 million to €4.6 million in October, the CAB remained in deficit. The decrease in the deficit was mainly determined by the primary income balance (€191.7 million) which turned to surplus due to agricultural subsidies from the European Union (EU) (see Chart 1). With a decline in exports and imports of services (by 3.8% and 2.3% respectively), the surplus on the balance of services went down by 6.3% and amounted to €499.4 million. The foreign trade deficit rose by 6.9% to €753.9 million, due to a fall in exports of goods which outpaced the imports (by 6.2% and 4.3% respectively);
the secondary income balance was in surplus and amounted to €51.8 million. Transfers from EU support funds (€66.1 million) went up by 2.3%, whereas Lithuania’s calculated contributions to the EU budget (€33.2 million) fell by 22.3% compared to September. Personal transfers from abroad amounted to €57.9 million, a month-on-month increase of 6.1%. Personal transfers from Lithuania amounted to €35.3 million, a month-on-month increase of 3.9%;
the positive net flow of financial account investment (€294.4 million) was mainly determined by the positive net flow of other investment, which was not offset by the negative flow of portfolio investment as a result of the Government’s eurobond issue.
