Direct investment in Q4 2023

The Bank of Lithuania published the provisional data on direct investment (DI) for Q4 2023. According to the latest data release:

foreign direct investment (FDI) flow in Lithuania amounted to €743.1 million during the reporting period, up by 59.9% year on year. The positive development was triggered by an increase of non-resident investment in equity instruments. The largest positive flows to Lithuania were observed from the Netherlands (€211.9 million), Latvia (€116.3 million) and Estonia (€91.8 million), while negative flows came from Cyprus (€28.1 million) and Israel (€19.1 million). In terms of economic activity, investments in financial and insurance activities (€295.7 million) as well as manufacturing activities (€215.4 million) were the ones to stand out;

FDI income by non-residents amounted to €691.8 million in Q4 2023 and was 7% lower year on year. Reinvestment (€539.1 million) and dividends (€125.6 million) accounted for the bulk of income. Most income from FDI was earned by Swedish (€160.8 million), Latvian (€92.1 million) and Estonian (€84.9 million) investors;

cumulative FDI in Lithuania rose by 11% over the year and amounted to €33.2 billion, or 46% of GDP, as at 31 December 2023. FDI per capita in Lithuania amounted to an average of €11,485 (€10,454 as at 31 December 2022). The largest investors in Lithuania included Germany (€5.7 billion), Estonia (€3.7 billion), Sweden (€3.3 billion), the Netherlands (€3.2 billion) and Latvia (€2 billion). The largest share of FDI (€11.6 billion) was attracted by companies engaged in financial and insurance activities, recording a 12.1% increase in investment (see Chart 1);

the flow of Lithuania’s DI abroad amounted to €67.6 million during the reporting period. The largest investment flows were recorded for Germany (€37.6 million) and Sweden (€34 million), or for companies engaged in information and communication activities (€97.4 million) in terms of economic activity;

DI income earned by Lithuanian investors abroad amounted to €141.6 million. Reinvestments accounted for the largest share of income (€120.9 million). Most income was earned from investment in Latvia (€49.3 million), Germany (€33.8 million) and Poland (€21.3 million), while in terms of economic activity – from information and communication companies (€49.8 million);

Lithuania’s cumulative DI abroad grew by 25.9% year on year and stood at €13.3 billion as at 31 December 2023. Lithuania’s DI in the EU Member States accounted for 60.3%. Major directions of Lithuania’s DI abroad: the US and Latvia (34.2% and 15.2% of Lithuania’s total DI abroad respectively). The largest share of Lithuania’s cumulative DI abroad (46%, or €6.1 billion) went to companies engaged in professional, scientific and technical activities (see Chart 2).

Chart 1. Cumulative FDI in Lithuania, by type of activity

Statistics