Estonia's current account deficit in 2008 narrowed to EEK 22.9 billion from EEK 43.16 billion deficit in 2007, the Bank of Estonia said Friday.

The decrease in the current account deficit was especially pronounced in the second half of 2008, primarily because of the decline in the net outflow of income, the central bank said.

The current account deficit for the fourth quarter of 2008 was the lowest in three years and amounted to EEK 3.3 billion, 5.5% of the fourth-quarter gross domestic product.

Visible trade deficit was EEK 28.6 billion in 2008 and comprised 11.5% of GDP. It narrowed from a deficit of EEK 42.02 billion shortfall in 2007.

The decease in trade deficit can be attributed to the goods groups of transport vehicles, machinery and equipment, and metals, as their deficits declined by EEK 15 billion in total. Goods exports grew 6% year-on-year and totaled EEK 133.7 billion in current prices, while imports declined 4% to EEK 162.4 billion.

The capital account balance was a surplus of EEK 3.7 billion in 2008, up from EEK 2.7 billion in 2007. Meanwhile, financial account surplus contracted to EEK 29.2 billion from the previous year's EEK 40.1 billion.

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