Deficit reduced, but we still lose the most due to goods imports

The current account deficit of BiH was reduced by as much as 947.3 million marks last year, announced the Central Bank of BiH, reports the BiH news agency Patria (NAP). CBBH published data on transactions for 2013, according to which the current account deficit amounted to 1.43 billion KM, which is 947.3 million KM less compared to 2012.

- In this way, the imbalance in foreign trade has been significantly corrected compared to the previous two years, when the current account deficit was close to 10% of gross domestic product, to be reduced to 5.5% of the estimated GDP for 2013 in 2013 - state CBBH.

The main cause of the current account deficit is still the significant imbalance in foreign trade of goods.

- The deficit in goods trade in 2013 amounts to 7.80 billion KM, or 7.6 percent less compared to 2012, which is a result of increased exports and reduced imports of goods - state CBBH.

A surplus of 2.25 billion KM was achieved on the services balance, 3.1% more than in 2012, which is a consequence of a slight increase in services exports and a more pronounced decrease in services imports.

- Financing the current account deficit was enabled by sufficient inflows of financial resources from abroad, where increased inflows were recorded on the basis of foreign borrowing. Therefore, it was not necessary to spend foreign exchange reserves to finance the current account deficit, but they even recorded an increase in 2013 - emphasize CBBH, reports Patria.