Current account deficit doubles in April

The current account deficit, which measures net foreign currency outflows, doubled in April to 1.39 billion euros, according to data published on Friday by the National Bank. Overall, in the first four months of the year, the growth rate of the foreign deficit dropped 125% in the first quarter, from 116%, however, considerably surpassing official expectations for the whole year (only a 34% increase against last year’s 45%). Over the last four quarters, the current account deficit exceeded 11.6% of the GDP. As for foreign direct investments, the main funding provider for the foreign deficit registered the worst month in the last two years. Foreign investments amounted to 291 million euros, providing funding for just 21% of the foreign deficit. In the first four months of the year, the investments covered only 36% of the deficit, as compared with 91% in the first four months of last year. Foreign direct investments dropped by almost 30% against the first four months of last year.