During the second quarter of 2009, Malta registered a net surplus in the current account statement of €212.7 million.

Provisional figures on the Balance of Payments statement of Malta for the second quarter of 2009 disclose a current account surplus of €212.7 million. Indeed, this implies an improvement in the current account balance of €359.7 million over the net deficit of €147.0 million registered during the corresponding June quarter last year.

Generating this amelioration in the current account balance was essentially an across-the-board improvement in the net balances of the main accounts that compose the current account statement. The goods account registered a contraction in the visible trade gap of €130.1 million, from a net deficit of €336.1 million during the June 2008 quarter to one of €206.0 million during the same period this year; whilst the net positive balance in the current transfers account improved by €127.6 million, from a net surplus of €61.0 million during the second quarter of 2008 to one of €188.6 million during the relative period in 2009. Likewise, the net negative balance in the income account shrunk favourably by €77.5 million, from a net deficit of €100.9 million during the June 2008 quarter to one of €23.4 million during the quarter under review; whereas the net positive balance in the services account increased by €24.5 million, from a net surplus of €229.0 million during the second quarter of 2008 to one of €253.5 million during the same period this year.

The net balance in the goods account was influenced by a notable fall in import outlays of €259.2 million that more than offset the adverse drop in export receipts of €129.1 million; whereas the net balance in the current transfers account was affected by a sharp increase in government receipts that outweighed entirely the unfavourable rise in government payments registered during the period under consideration. Also, the net balance in the income account was favourably influenced by a fall in interest payments paid abroad as well as by a drop in the retained earnings of foreign-owned local enterprises that, together, were higher than the fall in interest revenues earned from abroad and the increase in dividend payments allotted to direct investors of foreign-owned enterprises operating in Malta. In addition, the net balance in the services account was characterised by an improvement of €50.9 million in the net balance of the other services account that more than offset the deterioration of €9.1 million and €17.2 million recorded respectively in the net balances of the transport account and the travel account of the statement.

In the capital and financial account of the statement, the capital account was marked by net inflows of €7.7 million as against net inflows of €8.1 million during the second quarter of 2008; whereas the financial account was shaped by net outflows of €405.0 million as opposed to net inflows of €250.4 million during the April to June period last year.

The direct investment abroad recorded net outflows of €18.3 million as against net outflows of €38.8 million during the June 2008 quarter; whereas the direct investment in Malta registered net outflows of €45.5 million as opposed to net inflows of €125.4 million during the second quarter of 2008.

The portfolio investment account was characterised by net outflows of €327.4 million as against net outflows of €1,415.5 million during the June 2008 quarter, whereas the financial derivatives account was marked by net inflows of €67.6 million as opposed to net inflows of €108.6 million during the April to June period last year. The other investment account was marked by net outflows of €23.8 million as against net inflows of €1,424.6 million during the second quarter of 2008.

During the period under review, the reserve assets of Malta increased by €57.7 million as against a drop of €46.1 million during the corresponding June quarter last year.

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