Current account posts EUR 0.81 bn deficit in May
Current account
The current account posted a deficit of EUR 0.81 bn in May 2008, compared with EUR 0.37 bn in the same period the previous year. For the twelve months June 2007 – May 2008 the current account recorded a surplus of EUR 6.88 bn.
In BOP terms, there was a EUR 0.65 bn surplus on goods and a EUR 0.05 bn deficit on services in May. The income account posted a deficit of EUR 1.23 bn: inward income amounted to EUR 1.39 bn, while outward income amounted to EUR 2.62 bn. A large proportion of the outward income is accounted for by dividends on portfolio investment. The current transfers account posted a deficit of EUR 0.18 bn.
Financial account, flows
Capital inflows in May exceeded outflows by EUR 2.76 bn. There was a net inflow of EUR 1.84 bn in direct investment, the stocks of inward and outward direct investment decreasing by EUR 5.15 bn and EUR 6.99 bn respectively. Portfolio investment was inward on net, in the amount of EUR 0.06 bn: external assets decreased by EUR 0.65 bn, and liabilities by EUR 0.59 bn. Other investments (loans, deposits, trade credits and other items) resulted in a net capital inflow of EUR 0.66 bn. Claims decreased by EUR 8.09 bn, and liabilities by EUR 7.43 bn.
International investment position, stock
An analysis of Finland’s net international investment position at the end of May shows that Finnish residents' external liabilities were EUR 26.17 bn more than their external assets. External assets totalled EUR 391.7 bn, while liabilities totalled EUR 417.9 bn.
The external liabilities of non-financial corporations, monetary financial institutions (MFIs), central government and local government exceeded their external assets. Equity-related liabilities accounted for most of the debt accumulated by non-financial corporations. In contrast, the external assets of the central bank, other financial institutions, employment pension funds and households exceeded their external liabilities.
Finland's net international investment position excluding equity items at the end of May was positive, in the amount of EUR 1.54 bn.
| Year 2007, EUR million |
April 2008, EUR million |
May 2008, EUR million |
12 month moving sum, EUR million | |
| Current account | 7,287 | -590 | -808 | 6,883 |
| Goods | 8,714 | 1,198 | 649 | 8,340 |
| Services | -1,127 | -55 | -51 | -619 |
| Income | 1,084 | -1,543 | -1,227 | 547 |
| Transfers | -1,385 | -190 | -178 | -1,384 |
| Capital account* | 173 | – | – | – |
| Financial account | -7,795 | 982 | 2,756 | -4,280 |
| Direct investment | -107 | 156 | 1,837 | -830 |
| Portfolio investment | -7,765 | 3,973 | 58 | -8,193 |
| Other investment | 944 | -2,722 | 661 | 7,972 |
| Reserve assets | -227 | 202 | 5 | -401 |
| Financial derivatives | -641 | -628 | 195 | -2,828 |
| Errors and omissions | 336 | -392 | -1,948 | -2,703 |
The statistics become final more than two years after the end of the reference year.
* Capital account is not estimated monthly. The figures are published first after the yearly data are prepared.
More information
Jaakko Suni tel. +358 10 831 2454, email firstname.surname(at)bof.fi