Bank of Lithuania
2020-12-21
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Today, the Bank of Lithuania released the balance of payments data for Q3 2020, which shows that:

the current account balance (CAB) has been in surplus for a second consecutive year. Compared to the previous period, the CAB surplus grew as much as 1.4 times and amounted to €1.0 billion or 7.8% of the gross domestic product (GDP). The accumulation of the CAB surplus was determined by the increase in the surplus of income and secondary income balances and the change of the foreign trade balance from deficit to surplus, as these factors offset the rise in the primary income balance deficit. A year earlier, the CAB stood at €398.2 million, equating to 3.1% of GDP (see Chart 1);

the surplus on the capital account amounted to €247.9 million, increasing by 14.1% over the year. This was a result of transfers received from the European Union structural support funds dedicated to financing investment projects;

the net positive flow of financial account investment increased 2.7 times year on year and amounted to €1.0 billion or 7.9% of GDP (see Chart 2). The increase was determined by the net positive inflow of other investment and the rise in official reserve assets, which offset negative portfolio investment and direct investment flows that resulted, respectively, from the new eurobond issue in July and from the rise in non-resident liabilities due to reinvestment;

the net negative international investment position amounted to €8.9 billion or 18.2% of GDP at the end of Q3;

Lithuania's gross external debt stood at €36.3 billion, or 74.4% of of GDP, whereas net debt amounted to €1.5 billion or 3.1% 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

Detailed data on the balance of payments, international investment position, and foreign debt is available on the Bank of Lithuania website (under External Statistics).

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