During the third quarter, Malta registered a current account surplus in the Balance of Payments Statement of €30.2 million when compared to the corresponding quarter in 2009.
Provisional figures on the external transactions that Malta conducted during the third quarter this year reveal a favourable turnaround in the current account balance of €82.3 million; from a net deficit of €52.1 million during the September 2009 quarter to a net surplus of €30.2 million during the corresponding quarter this year.
Causing this shift was essentially an improvement in the net balances of both the services account as well as the current transfers account of the statement. In fact, the net positive balance in the services account improved by €58.2 million, from a net surplus of €393.7 million during the third quarter of 2009 to one of €452.0 million during the corresponding period this year. In addition, the net negative balance in the current transfers account shifted by €48.3 million, from a net deficit of €47.4 million during the September 2009 quarter to a net surplus of €1.0 million during the corresponding period this year.
Essentially, the services account was shaped by a notable improvement in the net positive balance of the travel account that more than offset the deterioration registered in both the transport account as well as the other services account of the statement. Indeed, while the net surplus balance in the travel account advanced by €95.8 million as a result of higher earnings from incoming tourism, the net positive balances in the transport account and the other services account worsened by €26.2 million and €11.3 million respectively. The current transfers account was favourably affected by a decline in transfer payments to foreign entities overseas as well as by higher transfer receipts from non-resident entities abroad.
On the other hand, the visible trade gap in the goods account expanded by €18.4 million, from a net deficit of €297.4 million during the third quarter of 2009 to one of €315.8 million during the corresponding period this year. In fact, the goods account was particularly affected by higher import outlays on capital goods and industrial supplies that outweighed the increase in export receipts registered during the period under review. Also, the net negative balance in the income account rose by €5.8 million; from a net deficit of €101.1 million during the September 2009 quarter to one of €106.9 million during the September quarter this year.
The capital account was marked by net outflows of €0.3 million as opposed to net inflows of €1.9 million during the September quarter last year. The financial account was characterised by net outflows of €72.7 million as against net outflows of €40.2 million during the third quarter last year.
The direct investment abroad recorded net inflows of €1.7 million as compared to net outflows of €19.5 million during the September 2009 quarter; whereas the direct investment in Malta registered net inflows of €94.7 million as against net inflows of €248.1 million during the July to September period last year. Indeed, the direct investment in Malta was affected by a drop in new, incoming foreign equity capital as well as by a decline in retained earnings held by foreign-owned entities operating in Malta; and an increase in claims by Malta on foreign direct-investing entities abroad.
The portfolio investment account was shaped by net outflows of €609.3 million as compared to net outflows of €1,018.1 million during the third quarter last year. The financial derivatives account was marked by net inflows of €39.4 million as opposed to net outflows of €16.4 million last year. In addition, the other investment account was characterised by net inflows of €523.7 million as against net inflows of €671.5 million during the July to September period last year.
As a result of these movements recorded in the various accounts of the statement, the reserve assets rose by €122.9 million as opposed to a fall of €94.2 million registered during the September quarter a year ago.