Balance of payments of the Republic of Lithuania for Q2 2024

the surplus on the current account balance (CAB) declined by 7.8%, compared to the first quarter of 2024, and amounted to €623.3 million, or 3.3% of gross domestic product (GDP). This development was mainly determined by the growth in deficits on the foreign trade and primary income balances (€178.6 million and €147.8 million respectively). The rise in the foreign trade deficit (20.5%) was affected by imports of goods, which increased more than exports (by 4.8% and 3.2% respectively). The former amounted to €1.1 billion. Compared with the previous quarter, the increase in both exports and imports of services was almost equal, around 12.5%. It led to a rise in the surplus on the balance of services (12.5%), totalling €2.3 billion;

the deficit on primary income balance went up by 36.3% and amounted to €555.3 million, mainly underpinned by increased reinvestment in Lithuania (€155.4 million);

the deficit on secondary income balance contracted by 20.7% to €70.1 million. It was influenced by an increase in foreign support received by general government and other sectors.

For comparison: a year ago, the CAB was also in surplus and stood at €109.2 million, or 0.6% of GDP at current prices (see Chart 1);

the surplus on the capital account balance increased by 2.1% quarter on quarter and amounted to €235.2 million. This was influenced by transfers from EU structural support funds dedicated to financing investment projects. In the second quarter of 2023, the surplus on the capital account balance amounted to €282.5 million;

over the reporting period, the net flow of financial account investment was positive and stood at €2.6 billion, or 14.0% of GDP. It was triggered by a positive net flow of other investment of €3.1 billion and an increase of €392.0 million in official reserve assets. The impact of these positive flows was lessened by negative net flows of direct and portfolio investment (€781.1 million and €121.1 million respectively).

For comparison: in the second quarter of 2023, the net flow of financial account investment was positive and stood at €1.2 billion, or 6.5% of GDP at current prices (see Chart 2);

the net international investment position was positive and amounted to €450.4 million, or 0.6% of GDP, at the end of the second quarter. It was negative a year ago, amounting to €5.8 billion, or 8.2% of GDP at current prices;

at the end of the reporting period, Lithuania’s gross external debt stood at €54.2 billion, or 73.4% of GDP, while the net external debt amounted to -€9.0 billion, or 12.1% of GDP, i.e. Lithuania’s assets abroad exceeded foreign liabilities.

For comparison: a year ago, Lithuania’s gross external debt stood at €48.5 billion, or 68.9% of GDP, while the net external debt amounted to -€5.4 billion, or 7.7% of GDP.

Chart 1. CAB and its composite flows as a percentage of GDP

Chart 2. Net financial account investment flows as a percentage of GDP

A detailed data revision on balance of payments and national accounts coordinated by Eurostat and the European Central Bank is carried out in all countries of the European Union in 2024. Data on balance of payments and international investment positions, external debt and international trade in services from the first quarter of 2014 to the fourth quarter of 2023 was reviewed to have harmonised macroeconomic statistics.

Detailed data on the balance of payments and international investment position as well as external debt of the second quarter of 2024 and revised data from the first quarter of 2014 to the first quarter of 2024 is available on the website of Lietuvos bankas (under External statistics).

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Statistics, External statistics