Direct investment in Q4 2021
Direct Investment in Q4 2021 (Joint press release by the Bank of Lithuania and Statistics Lithuania).
The Bank of Lithuania and the Statistics Lithuania publish the provisional data on direct investment (DI) for Q4 2021 as well as the revised data for Q1–Q3 of 2021. According to the latest data release:
The flow of foreign direct investment (FDI) in Lithuania was positive and amounted to €635.8 million in Q4 2021. The growth was driven by reinvestments (€607.9 million). During the reporting period, the dominant FDI flows were observed from the USA (€232.6 million), Hong Kong (€213.1 million), the Netherlands (€186.9 million), and the United Kingdom (€155.6 million).
Over 2021, the flow of FDI fell by 43.2% to €1.7 billion and reinvestments increased by 34.3% to €1.6 billion. During this period, the highest investment flows were recorded in Hong Kong (€607.6 million), the Netherlands (€356.2 million) and the USA (€278.2 million) capital companies (see Chart 1). Belarus ranked seventh in terms of investment flows in 2021, with a 1.9-fold increase of €117.7 million, while Russian investments decreased by €27.8 million, but increased by €34.9 million in 2020.
By economic activity, FDI flows in Lithuania increased in Q4 2021 in manufacturing (€466.9 million), financial and insurance (€136.9 million) companies. In 2021, FDI flows are expected to increase the most, by 1.7 times, in auxiliary financial services and insurance activities;
FDI income by non-residents increased by 10.4% in Q4 2021, compared to the same period of 2020, and amounted to €700.7 million. The largest part of the income was reinvested (€607.9 million). Most income from FDI was earned by Hong Kong (€210.4 million) and Sweden (€101.4 million) investors.
In 2021, FDI income increased by 31.5% to €2.6 billion. The top five countries last year were Hong Kong, Sweden, Estonia, Switzerland and the Netherlands. By comparison, Belarus' investment income amounted to €52.3 million (increased by 37.1%), while Russia's investment income amounted to €7.2 million (declined by 82.7%) (see Chart 2);
cumulative FDI in Lithuania rose by 8.4% over the year and amounted to €26 billion or 46.9% of GDP on 31 December 2021 (see Chart 3). FDI per capita in Lithuania amounted to an average of €9,286 (on 31 December 2020 – to €8,517). The top five investors were Germany (€5.5 billion), Sweden (€4 billion), Estonia (€2.8 billion), the Netherlands (€2.4 billion) and Hong Kong (€1.8 billion). The largest share of FDI was attracted by companies engaged in financial and insurance activities (€9.8 billion), manufacturing (€4.1 billion), wholesale and retail trade; repair of motor vehicles and motorcycles (€2.7 billion) and real estate activities (€2.4 billion). Cumulative FDI in postal and courier activities increased by four times and in auxiliary financial services and insurance activities by 3.6 times (see Chart 4);
the flow of Lithuania's DI abroad in Q4 2021 was positive and amounted to EUR 124.6 million. The largest investment flow was recorded in Latvia (€95.3 million); by economic activity – in companies engaged in real estate activities (€57.8 million) and wholesale and retail trade; repair of motor vehicles and motorcycles (€46.3 million);
DI income earned by Lithuanian investors abroad amounted to €37.9 million in Q4 2021. The largest share of DI was made of reinvestments (€32.2 million).
Over the entire year, Lithuania's DI income abroad amounted to €225.2 million, of which €5.8 million (2.6%) in Belarus and €10.8 million (4.8%) in Russia.
Lithuania's cumulative DI abroad increased by 10.8% over the year and stood at €9.6 billion on 31 December 2021. Lithuania's DI in the EU Member States accounted for 49.7%, in the Euro area countries – for 42.9% and in the USA – for 44.4% of Lithuania's total FDI abroad. Investments in Belarus amounted to €145 million and in Russia to €124.1 million, for 1.5% and 1.3% of Lithuania's total DI abroad, respectively. In Belarus and Russia, the largest share of investments was made in wholesale and retail trade; repair of motor vehicles and motorcycles – €69 million and €71.2 million respectively.
|Chart 1. FDI flow in Lithuania in 2021|
|Chart 2. Cumulative FDI in Lithuania|
|Chart 3. Cumulative FDI in Lithuania
(compared to gross domestic product)
|Chart 4. Highest annual growth of cumulative FDI in Lithuania in 2021|
* In the chart, the names of economic activities are abbreviated1.
Detailed data on DI data are available on the Bank of Lithuania website under External Sector Statistics. Please note that the Direct Investment Statistics Database provides detailed data on DI by industry, country and grouping from Q1 2019.
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1 Petroleum – manufacture of petroleum, chemical, pharmaceutical, rubber and plastic products; Postal – postal and courier activities; Financial - activities auxiliary to financial services and insurance activities; Computer – manufacture of computer, electronic and optical products; Mining – mining and quarrying.