On the Quarterly "Latvia's Balance of Payments"

Press Release of August 8, 2006

The content and structure of Latvia's Balance of Payments for the first quarter of 2006 have been changed substantially, presenting new data coverages which may provide additional information on economic developments in Latvia.

The methodology used has been supplemented with explanations regarding the valuation of foreign direct investment at market prices, recording in the balance of payments of resources received by Latvia from the EU funds and Latvia's contributions to the EU budget, linking net flow and position statistics, and calculating the effective exchange rates of the lats.

The statistical part is extended by presenting data sets of net flows and positions as well as foreign direct investment statistics.

The tables of analytical indicators comprise GDP data, the coverage of imports with reserve assets, foreign direct investment per capita, exchange rates set by the Bank of Latvia and other indicators.

The resources received from the EU structural funds, the Cohesion Fund and other EU funds as well as contributions to the EU budget are reported separately and distinction made between inflows and outflows forming net foreign direct investment. Goods, services, income, current transfer and capital account data are shown in the breakdown by country group (Latvia's transactions with the EU countries and other countries).

The publication includes a detailed reconciliation table of the CSB foreign trade statistics and data of goods balance of Latvia's balance of payments, as well as the international investment position reflecting net flows, price changes, exchange rate changes and other adjustments.

Net flows and positions of foreign direct investment in Latvia and Latvia's direct investment abroad are shown in the breakdown by kind of activity and country.

The publication also presents data on the nominal and real effective exchange rate of the lats calculated using consumer and producer price indices.

Latvia's balance of payments has been compiled and published every quarter since 1992. The Bank of Latvia is responsible for the compilation of the balance of payments as of the first quarter of 2000.

The quarterly "Latvia's Balance of Payments" is available in printed format as well as published and archived on the Bank of Latvia's website under "Publications, Speeches".