According to the latest report from Statistics Finland, the country’s current account was in deficit in March 2023. The report, which covers the balance of payments and international investment position for March, reveals that the current account showed a deficit of EUR 0.6 billion. This comes after several months of surplus, highlighting a potential shift in Finland’s economic landscape.
The report indicates that the goods account in balance of payment terms was EUR 0.8 billion in surplus. The value of goods exports increased by 11% year-on-year and was EUR 8.0 billion, while the value of goods imports decreased by 9% year-on-year to EUR 7.2 billion. However, the service account was in deficit by EUR 0.9 billion, with the value of service exports increasing by only 3% year-on-year to EUR 2.6 billion, while the value of service imports rose by 20% year-on-year to EUR 3.4 billion.
The primary income account was EUR 0.2 billion in deficit, and the secondary income account was EUR 0.3 billion in deficit. The 12-month moving total of the current account was EUR 9.3 billion in deficit.
The report also highlights net capital inflow to Finland from abroad, which amounted to EUR 0.6 billion in March. The highest net capital inflow was in the form of derivatives, totaling EUR 0.8 billion. On the other hand, net capital outflow from Finland was highest in the form of portfolio investments.
The report’s findings may be concerning for Finland’s policymakers, as a current account deficit indicates that the country is spending more on imports than it is earning through exports. This may have implications for the country’s economic growth and overall stability. Nevertheless, the report also shows that net capital inflow to Finland from abroad remains positive, indicating continued investor confidence in the country’s economy.
Overall, the Statistics Finland report provides valuable insights into Finland’s economic performance and its place in the global economy. As the country continues to navigate economic challenges, policymakers and investors will likely be closely monitoring future reports to assess trends and identify areas for potential growth and improvement.