2024-09-30
Lietuvos bankas published the provisional data on direct investment (DI) for the second quarter of 2024. According to the latest data release:
foreign direct investment (FDI) flow in Lithuania grew by a factor of 1.5 year on year and amounted to €636.4 million. This development was underpinned by non-resident investment in debt instruments (€415.2 million). The largest flows to Lithuania were observed from Poland (€183.5 million), Sweden (€136.7 million), the US (€136.4 million) and Latvia (€117.9 million), while negative flows came from the UK (€136.3 million), France (€68.5 million) and Cyprus (€51.7 million). In terms of economic activity, the rise in investments in information and communication technology (€307.7 million), manufacturing (€94.2 million) as well as reduced investments in agriculture, forestry and fishery companies (€18.1 million) were the ones to stand out;
FDI income from non-resident investment was lower by 23.2% year on year and amounted to €899.2 million in the second quarter of 2024. The bulk of income was influenced by dividends paid out to investors (€730.6 million). Most dividends were paid out to Swedish (€152.3 million), Dutch (€102.5 million) and Cypriot (€87.3 million) investors. The highest income in terms of economic activity was earned by financial and insurance companies (€267.2 million) (see Chart 1);
cumulative FDI in Lithuania rose by 7.1% over the year and amounted to €36.8 billion, or 49.7% of GDP, as at 30 June 2024. FDI per capita in Lithuania amounted to an average of €12,714 (€11,971 as at 30 June 2023). The largest investors in Lithuania included Germany (€6 billion), the Netherlands (€4.7 billion), Estonia (€3.7 billion), Sweden (€3.5 billion) and Latvia (€2.2 billion). The largest share of FDI (€13.2 billion) was attracted by companies engaged in financial and insurance activities, recording a 7.2% increase in investment (see Chart 2);
the flow of Lithuania’s DI abroad was negative and amounted to €144.7 million during the period under review. It was influenced by a drop in resident investment in debt and equity instruments (€67.3 million and €48.2 million respectively). The largest negative investment flow was observed in Russia (€101.3 million) and Sweden (€60.6 million), while the largest positive flow was recorded in Cyprus (€20.3 million) and Estonia (€14.7 million). In terms of economic activity, the investment flow in electricity, gas, steam supply and air-conditioning activities (€35.1 million) was the one to stand out, whereas a decrease was recorded in companies engaged in wholesale and retail trade as well as repair of motor vehicles and motorcycles (€66.4 million);
DI income earned by Lithuanian investors abroad amounted to €33.8 million. Dividends accounted for the largest share of income (€54.2 million), while reinvestments (€29.2 million) were negative during the same period. Most income was earned from investment in Cyprus (€20.2 million), Bulgaria (€8.5 million) and Poland (€5.2 million), while in terms of economic activity the bulk of income was earned from companies engaged in financial and insurance activities (€20.9 million);
as of 30 June 2024, Lithuania’s cumulative DI abroad amounted to €11.7 billion. Lithuania’s DI in the EU Member States accounted for 57%. Major directions of Lithuania’s DI abroad: the US and Latvia (37.9% and 17.2% of Lithuania’s total DI abroad respectively). The largest share of Lithuania’s cumulative DI abroad (50.5% or €5.9 billion) went to companies engaged in professional, scientific and technical activities.
Chart 1. Non-resident FDI income, by type of activity
Chart 2. Cumulative FDI in Lithuania, by type of activity
The revision of balance of payments and national accounts indicators coordinated by Eurostat and the European Central Bank was carried out in September 2024 at the EU level. Data on FDI from the first quarter of 2020 to the first quarter of 2024 was revised to have harmonised macroeconomic statistics.
Detailed data on DI is available on the website of Lietuvos bankas under External statistics.
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