Balance of Payments of the Republic of Lithuania for Q4 2020
Today, the Bank of Lithuania released the balance of payments data for Q4 2020, which shows that:
the current account balance (CAB) remains in surplus and amounts to €1.4 billion or 10,8% of the gross domestic product (GDP). This was determined by the rise in the surplus of the balance of services. The inflows in the primary income balance increased significantly due to subsidies for agriculture received from the European Union (EU). They substantially reduced the deficit of the primary income balance and its contribution on the formation of the CAB surplus. A year ago, the CAB stood at €951.9 million or 7.4% of GDP (see Chart 1);
the capital account surplus widened by 46.9% over the quarter, to €359.0 million. This was a result of transfers received from EU structural support funds dedicated to financing investment projects;
the net positive inflow of financial account investment increased 2.3 times over the reporting period and amounted to €1.3 billion or 10.1% of GDP (see Chart 2). This increase was determined by positive net flows of direct and other investment, which offset the negative net flow of portfolio investment and the decline in official reserve assets;
the negative net international investment position amounted to €7.7 billion, or 15.7% of GDP at the end of Q4;
Lithuania’s gross external debt stood at €36.3 billion, or 74.4% at the end of Q4, whereas the net external debt turned negative and stood at €0.9 billion or 1.9% 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
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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