Bank of Lithuania

According to revised data, in 2002 the balance of payments current account deficit (CAD) made up LTL 2.67 billion. Compared to 2001, the CAD widened by LTL 375.6 million to make up 5.3 per cent of GDP (4.8% in 2001).

CAD and CAD to GDP ratio, %


CAD, LTL million

CAD to GDP ratio, %













-1 255.74














-1 188.4


The widening of the CAD in 2002 was mostly determined by the increased negative foreign trade balance and the decline of the positive balance of current transfers. A higher positive balance of services and a lower negative income balance were factors pushing CAD down.

Development of the current account balance, composite balances, including factors influencing development of the account


2001, LTL million

2002, LTL million

Change, %



-2 295.5

-2 670.6



Trade balance

-4 432.2

-4 867.8



Balance of services

1 825.9

1 987.8



Income balance





Balance of current transfers

1 030.1




Development of the capital and financial account and composite balances, including factors influencing development of the account


2001, LTL million

2002, LTL million

Change, %


Capital and financial account (with errors and omissions)

2 295.0

2 670.6



Capital account balance



3 605.5


Foreign direct investment

1 754.9

2 604.5



Investment portfolio

1 057.0




Financial derivatives





Other investment





International reserves

-1 300.1

-1 610.8



Errors and omissions





Foreign Trade. According to the revised data of the Department of Statistics, in 2002, compared 2001, export of Lithuanian goods increased by 10.7 per cent, while import went up by 12.4 per cent.

Services. In 2002, compared to 2001, exports of services increased by 16.7 per cent, and import of services grew by 21.8 per cent. The total positive balance of services amounted to LTL 1.99 billion in 2002 (LTL 1.83 billion in 2001). Export growth in travel and transport services accounted for more that three quarters of total growth in the export of services. Transport and travel services accounted for 44.4 and 34.6 per cent of the total export of services, respectively.

Income. The negative income balance in 2002 made up LTL 642.3 million and was LTL 76.5 million lower than in 2001.

Current transfers. The balance of current transfers was positive in 2002 and stood at LTL 851.8 million (LTL 1.03 billion in 2001). The decline of positive current transfers was related to the structural changes in all received non-repayable transfers.

Capital and financial account.

The capital and financial account balance made up LTL 2.11 billion in 2002, of which the capital account balance made up LTL 203.8 million, and the financial account balance was LTL 1.90 billion. Compared to 2001, the capital and financial account balance increased by LTL 427.8 million. This development was mostly influenced by the increased inflows of foreign direct investment and other investment in Lithuania.

Investment abroad. Investment abroad by Lithuanian economic entities declined in 2002 by LTL 155.8 million.

Foreign investment in Lithuania.

Total foreign investment flows in 2002 were LTL 3.36 billion. Compared to 2001, foreign investment flows declined by LTL 366.1 million. The total decline of foreign investment flows in Lithuania was determined by the contraction of portfolio investment flows and the expansion of negative foreign loan flows.

Foreign direct investment flows stood at LTL 2.67 billion in 2002 (of which LTL 648 million in Q4). Compared to 2001, these flows increased by LTL 882.4 million, i.e. by nearly 50 per cent. Inflows classified as foreign direct investment from privatisation made up LTL 188.3 million in 2002, and reinvestment made up LTL 256.1 million.

On 31 December 2002 accumulated foreign direct investment in Lithuania stood at LTL 13.2 billion (EUR 3.82 billion), or LTL 3,807 (EUR 1,103) per head of population.

Portfolio investment. Net portfolio investment inflows in 2002 made up LTL 517 million (LTL 952.1 million in 2001). These investment flows were determined by the distribution of the Government Eurobond issue among non-residents, which resulted in LTL 1.25 billion of receipts. Portfolio investment flows were negative in Q3 2002 (LLT 681.8 million) as the Government redeemed an earlier Eurobond issue.

Other foreign investment.

Trade credit from non-residents increased by LTL 495.7 million in 2002. In Q4 it went up by LTL 611.6 million (due to increased imports of goods). Non-resident deposit flows in domestic commercial banks made up LTL 36.2 million. Same as last year, total foreign loan flows were negative (more foreign loans were repaid) and stood at LTL 288.8 million.

International reserves. International reserve flows in 2002 were positive (LTL 1.61 billion). Net purchase of the anchor currency by the Bank of Lithuania from commercial banks was LTL 1.3 billion, while operations with the central government institutions increased the international reserves by as little as LTL 18.5 million.

Errors and omissions in the balance of payments in 2002 made up LTL 563 million (LTL 615.2 million in 2001).