Eesti Pank:External debt started to decline in 2009

According to the balance of payments published on 11 March, the 2009 current account surplus as a ratio of GDP was 4.6%. In contrast, the current account was in a deficit of more than 9% in 2008.Both the exports and imports of goods contracted last year due to the low level of domestic and foreign demand. The goods account deficit of 2009 was nearly four times smaller on 2008. Foreign demand was stronger as regards services, with the exports of some business services even increasing compared to 2008. Thus, the offsetting impact of the balance of payments of services was larger than in previous years. The goods and services account was in a surplus of around 6% as a share of GDP. Nearly half of it may be attributed to a decrease in end-products and other stocks.As regards domestic demand, the positive balance of goods and services refers to growing domestic savings. Since savings exceeded investments, there was no need for external financing and it was possible to pay back the external debt. The latter shrank ...