Balance of payments deficit falls 20 percent month over month

ZGM DAILY

2018-05-07 09:01 GMT+8

As of March, balance of payments deficit was USD 87.6 million, which is 20 percent lower compared to the previous month. Current account balance indicates a loss of USD 424 million.

Foreign trade balance resulted USD 352 million in profit as total export is currently higher than its import thanks to raw materials export. Therefore, goods account totalled USD 260.9 million.

In other words, while the goods account was profitable, the services account had USD 347.6 million deficit. In connection to tourists’ spendings, the outflow of foreign currency increased, which had impact on services account. In addition, balance of primary income account, which registers in and outflow of cash related to salaries and investment, had a deficit of MNT 386.4 million. This shows that outflow is dominant in the primary income account.

But the balance of financial accounts, which involves transaction of direct and portfolio investments, resulted with USD 332.2 million gains. In other words, financing of such amount was obtained from outside sources in the first three months. Furthermore, the private sector brought in a total of USD 552.9 million FDI, including debt instruments, in the first quarter of this year.

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