Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
54 |
Current transfers balance reached
Figure 40. Current transfers, in millions of euro
at euro 888.9 million in December
1000
2010, which represents an annual
866.1 888.9
900
769.1 794.4
growth of 2.6 percent. Current 800
transfers of private sector are 700
600
538.2
527.9
dominated by migrant
524.0
464.8
500
401.3
remittances, which represent
361.0
400
around 47.3 percent of total 300 245.1 256.2
private sector transfers in the 200
100
country. In December 2010, the
0
balance of migrant remittances
2007 2008 2009 2010
reached at euro 420.2 million,
Current transfers Central government Other sectors
which represents an annual
Source: CBK (2011)
growth of 6.3 percent. The growth
of migrant remittances balance is attributed to the significant decline of remittances
outflows from Kosovo’s economy, compared to the level of inflows. While the value of total
transfers from Kosovo economy recorded an annual decline of 17.2 percent, the value of
total transfers received in the category of migrant remittances recorded an annual growth
of 1.2 percent, reaching at euro 511.6 million (euro 505.6 million in the previous year)
(Figure 39). The recovery of the Eurozone economies, where the largest part of Kosovo
emigrants are settled, is expected to have a positive impact on the level of migrant
remittances inflows to Kosovo, which mainly come from Germany, Switzerland, Italy and
Austria. At the same time, the balance of government sector transfers (donors, EULEX and
UNMIK) reached at euro 361.0 million, marking an annual growth of 10.1 percent (Figure
40).
3.4.2 Capital and Financial
Account
The capital and financial account
during 2010 was characterized
with a positive balance of euro
448.9 million (euro 543.0 million in
2010). The decline of the capital
and financial account was driven
by the capital account, which in
2010 was reduced to euro 25.4
million from 108.2 million in 2009.
Regarding the financial account,
the positive balance of euro 423.5
million during 2010 was by 2.6
percent lower compared to 2009
Figure 41. Financial account, in millions of euro
600
500
400
300
200
100
0
-100
-200
-300
-400
Capital and
financial
account
Foreign direct
investments
Portfolio
investments
Other
investments
2007 2008 2009 2010
Source: CBK (2011)
Reserve
assets
(euro 434.8 million). Among the factors which mostly contributed to the decrease of the
financial account balance was the increase of portfolio investments in external markets,
which in 2010 reached at euro 231.0 million. The high growth of portfolio investments is
mostly attributed to the significant growth of investments by pension funds and commercial
banks. On the other hand, the category of other investments had a significant positive
effect on the financial account as a result of the withdrawals of deposits from abroad by
monetary authorities, commercial banks and other economic sectors. Increase is noticed
also in the level of FDI (net), which in 2010 recorded an annual growth of 10.8 percent
(Figure 41).