ZAGREB, 30 June, 2021 - The current account of the balance of payments ran a deficit of €1.36 billion in the first quarter of 2021, thus narrowing the gap by €23.3 million or 1.7% from the same period of 2020, according to figures the Croatian National Bank (HNB) released on Wednesday.
A surplus on the capital account increased by 20.9% or €45 million in Q1 to €260 million.
As a result, the balance of payments of the current and capital accounts in Q1 generated a deficit of €1.1 billion, which is €100 million less than in the corresponding period in 2020.
"That improvement is exclusively the result of the surplus in the secondary income and capital transaction accounts due to a marked increase in net income from transactions with the EU budget. The favourable trend of absorbing EU budget funds, however, on the most part were annulled by a pronounced deterioration of balance of primary income accounts and, to a lesser extent, by the decreased net export of services," according to HNB analysts.
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