There was a EUR 152 million surplus on the balance of payments current account in the second quarter of 2016, EUR 116 million more than in Q2 2015, which was the first time the current account recorded a surplus in Q2, according to Croatian National Bank data.
The biggest contribution to the current account in Q2 2016 came from an increase in the surplus on the secondary income account, which reached EUR 472 million, up 55% on the year, Raiffeisenbank Austria (RBA) analysts said on Monday.
The surplus on the services account exceeded EUR 2 billion, up 4.8% from Q2 2015, primarily thanks to tourism revenues, which reached EUR 2.1 billion, up 5.3% on the year, RBA said, adding that the deficit on the primary income account fell 1.4% to EUR 406 million.
Commodity imports increased 5.2%, while exports went up 3.1%, resulting in a EUR 1.9 billion gap in the foreign commodity trade. The deficit on the commodities account in Q2 2016 went up 8.4% on the year (+EUR 149 million).
Over the past four quarters, the balance of payments current account recorded a surplus of 4.6% of GDP, largely due to bank losses on the primary income account resulting from the conversion of Swiss franc loans.
This year will be the fourth consecutive year that Croatia will end up with a surplus on the balance of payments current account, although it will be markedly lower than in 2015 because there will be no effect of the CHF loan conversion, RBA said, adding that this year will see record high tourism revenues and more money from European Union funds.