Moldova's Current Account Deficit At $89.9 bln Q 1 2006

Moldova's current account deficit sharply widens to $89.9 billion in the first quarter of 2006 according to data released by the National Bank of Moldova on July 6, 2006.
The deficit is more than doubles from the $35.7 billion in the corresponding year-on-year period.
The first quarter ballooning current account deficit was a result of the sharply widening trade gap. Moldovan exports during Jan-Mar grow by 4.5 percent to $262.8 mln, while imports rose by 24.9 percent to $542.3 mln year-on-year.
Service account deficit shrinks more than two fold to $1.98 mln.
According to the central bank, remittances from Moldovans working abroad for less then a year stood at $106 mln, transfers from those working for more than a year stood at $83 mln.
In the first quarter of 2006 Moldova received $31.5 mln in foreign grants. Income and current transfers surplus increased by 26.4 to $191,54 mln that covers 68.8 pct of trade deficit.
In June-March of 2006 foreign direct investment inflows to Moldovan economy amounted to $49.68 mln. The external debt of the Republic of Moldova increased by 2.2 pct to 2,03 billion.
Moldova’s official reserves assets decreased by $9.38 mln to $593.1 mln, which is sufficient to finance Moldova’s imports for 2.5 months period.