The balance of payments current account account deficit in the second quarter of this year was €1,204 million, down over €1.3 billion on the previous quarter, the latest Central Statistics Office (CSO) figures show.
According to CSO, reduced imports means the highest merchandise surplus in the current series (€9,316 million) was recorded in the latest quarter’s results, which are €0.8 billion down overall on the second quarter of 2008. That merchandise surplus is nearly €3.5 billion higher than the surplus of €5,855 million in the second quarter of last year.
The services deficit at €2,128 million was up over €1.25 billion on the same quarter, and net income outflows of €7,789 million were up over €1.3 billion. Higher profits of foreign-owned enterprises comprised most of this increase, the CSO said.
Services exports of €17,029 million fell more than €300 million largely due to lower earnings from tourism, financial services, insurance and trade-related services being partly offset by higher receipts from royalties/licences, operational leasing and miscellaneous services. Service imports rose by more than €0.9 billion to €19,156 million due to higher royalty payments (€5,148 million) and miscellaneous service imports (€5,205 million).
Investment income earned abroad (€14,014 million) dropped by €8 billion compared to a year earlier, however, while payments to foreign investors at €21,803 million were down by more than €6.6 billion. Lower receipts and payments of IFSC enterprises make up much of these reductions, the CSO said.
Outward direct investment, the majority from IFSC sources, was €5,738m. In terms of inward investment, reinvested earnings (€4,770 million) of foreign-owned enterprises in Ireland combined with other capital inflows (mostly inter-affiliate loans to IFSC enterprises) made up most of the €12,569m investment shown.