Review of Balance of Payments Developments: First Quarter 2013

14 June 2013, Bank of Mauritius

 

 

The current account deficit, inclusive of cross-border transactions of GBC1s, deteriorated to Rs6,877 million in the first quarter of 2013 from Rs4,223 million recorded in the corresponding quarter last year. Although the merchandise account deficit contracted, the current account performance did not improve as the surplus on the services account fell steeply.

 

 The merchandise trade deficit narrowed by 11.5 per cent to Rs15,217 million from Rs17,194 million registered in the first quarter of 2012. On a balance of payments basis, merchandise exports, largely driven by a substantial rise in ships, stores and bunkers, registered a growth rate of 10.6 per cent, year-on-year, while imports, f.o.b, contracted marginally by 0.05 per cent.

 

The services surplus witnessed a steep decline of 36.3 per cent to Rs6,133 million in the first quarter of 2013, from Rs9,632 million in the corresponding quarter last year. Net travel receipts have come down by 20.9 per cent, year-on-year, to reach Rs8,852 million in the first quarter of 2013. Transportation as well as net ‘other services’ both recorded higher net payments.

 

The income account, inclusive of GBC1s, posted a higher surplus of Rs2,115 million relative to Rs1,762 million in the first quarter of 2012. In terms of functional categories, direct investment income posted lower net inflows of Rs1,855 million while portfolio investment income recorded lower net outflows of Rs1,430 million.

 

The surplus on the current transfers decreased from Rs1,577 million in the first quarter of 2012 to Rs93 million in the first quarter of 2013, as a result of the lower net inflows on private transfers.

 

 

The capital and financial account balance, inclusive of reserve assets, posted higher net inflows of Rs8,233 million in the first quarter of 2013, from Rs5,557 million in the same period last year.

 

Direct investment in Mauritius, inclusive of GBC1s cross-border transactions, recorded net inflows of Rs506,102 million in the first quarter of 2013. Excluding cross-border transactions of GBC1s, non-residents’ direct investment in Mauritius, net of repatriation, registered higher net inflows of Rs2,198 million during the first three months of 2012 relative to Rs1,420 million in the corresponding period of last year. Residents’ direct investment abroad, net of repatriation, and excluding cross-border transactions of GBC1s, amounted to Rs612 million in the first quarter of 2013, lower than Rs656 million recorded a year ago.

 

Portfolio investment, inclusive of GBC1s cross-border transactions, posted net inflows of Rs80,245 million in the first quarter of 2013. Other investment recorded significant lower net outflows of Rs40,523 million in the first three months of 2013, mostly on account of larger increase in banks’ external liabilities relative to the increase in their assets.

 

The overall balance of payments for the first quarter 2013, excluding valuation changes, posted a surplus of Rs5,004 million as against a deficit of Rs1,614 million recorded in the first quarter 2012.