Direct investment in Q1 2023
Direct Investment in Q1 2023 (Joint press release by the Bank of Lithuania and State Data Agency).
The Bank of Lithuania and the State Data Agency published the provisional data on direct investment (DI) for Q1 2023. According to the latest data release:
the flow of foreign direct investment (FDI) in Lithuania amounted to €582.5 million in Q1 2023, which was driven by the growth in reinvestments (€255.7 million) and debt instruments (€253.8 million). During the period under review, the largest increase in investment was observed for Latvian (€291.3 million), Swedish (€93.8 million) and Luxembourg (€91.5 million) capital companies, whereas the sharpest decline was recorded for Polish (€205.9 million) capital companies. In terms of economic activity, investments in companies engaged in financial and insurance activities (€283.9 million) and wholesale and retail trade as well as repair of motor vehicles and motorcycles (€231.4 million) were the ones to stand out;
FDI income by non-residents amounted to €544.5 million in Q1 2023 and was 19% lower year on year. Dividends (€259.1 million) and reinvestments (€255.7 million) accounted for the bulk of income. The largest share of FDI income was earned by Swedish (€151.1 million) and Latvian (€119.2 million) investors;
cumulative FDI in Lithuania rose by 10.3% over the year and amounted to €31.7 billion or 46.5% of GDP on 31 March 2023. FDI per capita in Lithuania amounted to an average of €11,089 (as at 31 March 2022 – to €10,255). At the end of Q1 2023, the largest investors in Lithuania included Germany (€5.7 billion), Estonia (€3.6 billion), Sweden (€3.4 billion), the Netherlands (€2.9 billion) and the UK (€2.4 billion). The largest share of investments was attracted by companies engaged in financial and insurance activities (34.4%) as well as manufacturing (15.3%) (see Chart 1);
the flow of Lithuania’s DI abroad was positive in Q1 2023 and amounted to €532.4 million. The largest investment flows were recorded for the US (€262.2 million), Spain (€168.8 million) and Poland (€150.3 million). In terms of economic activity, the largest investments were directed to enterprises engaged in professional, scientific and technical activities (€272.6 million) as well as administrative and support service activities (€212.9 million);
DI income earned by Lithuanian investors abroad in Q1 2023 amounted to €317.9 million. The majority of these (€298.8 million or 94%) were reinvestments. Most income was earned from investment in the US (€264.1 million), and, in terms of economic activity, from companies engaged in professional, scientific and technical activities (€266.2 million);
Lithuania’s cumulative DI abroad grew by 22.8% over the year and stood at €13 billion as at 31 March 2023. Lithuania’s DI in EU Member States accounted for 59.9%, while in the US for 35% of Lithuania’s total DI abroad. The largest share of Lithuania’s cumulative DI abroad (45.8% or €5.9 billion) went to companies engaged in professional, scientific and technical activities (see Chart 2).
|Chart 1. FDI by non-residents in Lithuania by activity as at 31 March 20231|
|Chart 2. Lithuania’s cumulative DI abroad by type of activity as at 31 March 2023|
Detailed data on DI is available on the Bank of Lithuania website under External Sector Statistics.
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1 Names of some economic activities are shortened.