FOREIGN DIRECT INVESTMENT FLOW DOUBLED IN 2017
The Bank of Lithuania and Statistics Lithuania publish provisional foreign direct investment data for IV quarter 2017.
The foreign direct investment (FDI) flow in Lithuania decreased to EUR –177.7 million (see Fig. 1), due to a decline in equity instruments (EUR –310.1 million). In 2017, the FDI flow in Lithuania amounted to EUR 528.3 million, thus doubling from 2016. In IV quarter 2017, the largest positive FDI flow in Lithuania was from Sweden (EUR 158.3 million), while the largest negative one – from Malta (EUR –336.5 million) and The Netherlands (EUR –50.9 million). The largest FDI flow in Lithuania was into manufacturing (EUR 73.7 million), agriculture, forestry, fishery (EUR 27.4 million), information and communication (EUR 10 million). The largest decrease in FDI (EUR –264.4 million) was recorded in financial and insurance activities, as a result of the decline in equity instruments (EUR –350.3 million).
FDI income from non-resident investment in Lithuania amounted to EUR 388.5 million in IV quarter 2017. Most income from FDI in Lithuania was earned by Sweden (EUR 106.8 million), Poland (EUR 66.7 million) and Hong Kong (EUR 48.7 million), where the largest share of income was comprised of reinvestment. Most income was received from manufacturing (EUR 177.7 million) and financial and insurance activities (EUR 61.9 million).
On 31 December 2017, cumulative FDI in Lithuania amounted to EUR 14.7 billion (see Fig. 1) or 35 per cent of GDP, a year-on-year increase of 5.2 per cent. FDI per capita amounted to an average EUR 5215 (on 31 December 2016 – EUR 4890). Sweden, The Netherlands and Germany have remained the largest investors.
The flow of Lithuania's direct investment (DI) abroad was on the downward path, standing at EUR –201.2 million in IV quarter 2017 and EUR –27.6 million in 2017. Investment in professional, scientific and technical activities abroad posted a decline in investment (EUR –274.5 million), whereas the largest investment was made in financial and insurance (EUR 59.6 million) and information and communication activities (EUR 19.1 million).
DI income earned by Lithuanian investors abroad amounted to EUR 18.6 million in IV quarter 2017. Most income was earned from investment in Latvia (EUR 14.5 million) and Estonia (EUR 5 million). Income on equity instruments accounted for the largest share of income (see Fig. 2).
On 31 December 2017, Lithuania’s cumulative DI abroad amounted to EUR 2.8 billion. Lithuania’s DI in the EU Member States accounted for 89.8 per cent, in the euro area countries – 74.6 per cent of Lithuania's total DI abroad.
Data on foreign direct investment for I quarter 2018 will be published June 2018.
Equity instruments refers to company’s equity comprised of equity securities, reinvestment, reserves included in equity.
Reinvestment refers to the proportion of direct investor’s profit (loss) which was not distributed in the form of dividend and remained in the company (proportionally to the non-residents’ share in the company’s authorised capital), and revenue of foreign branches not transferred to the direct investor.
Debt instruments includes loans, debt securities, trade credits and advance payments, other amounts payable and receivable.
Direct investment income refers to announced dividend on equity instruments, reinvestment, and interest on debt instruments.