In August 2016, the balance of payments recorded a small surplus of USD 16 million due to:

• the widening of the current account deficit to USD 414 million amid a larger foreign trade deficit. Merchandise imports grew at a faster pace than exports, primarily driven by an increase in energy imports. In addition, both consumption and investment imports continued to increase, fueled by a pick-up in domestic demand.
• net inflows of USD 417 million on the financial account, which, as in previous months, were attributed to private sector borrowings. In contrast to previous months, the real sector was the major recipient of FDI. FX cash outside banks continued to decrease, albeit at a slower pace.

From January-August 2016, the current account recorded a deficit of USD 1.4 billion. However, the current account deficit was offset by net inflows on the financial account. As a result, the overall balance of payments amounted to a surplus of USD 533 million.

The updated data for August 2016 is available under External Sector Statistics.

See the Macroeconomic and Monetary Review (September 2016) for greater details on macroeconomic developments in August 2016.