Analytics, Investments, Lithuania, Statistics

International Internet Magazine. Baltic States news & analytics Wednesday, 26.04.2017, 22:37

The foreign direct investment flow into Lithuania was on the increase in Q3

Svetlana Šilgalienė Head, External Statistics Division Statistics Department of the Economics and Financial Stability Service of the Bank of Lithuania, Lina Volbikaitė Chief Specialist, Construction and Investment Statistics Division of Statistics Lithuania , 06.01.2017.Print version
Statistics Lithuania and the Bank of Lithuania inform that in III quarter 2016, the foreign direct investment (FDI) flow into Lithuania was on the increase, while the Lithuanian direct investment flow of abroad was on the decrease.

Foreign direct investment in Lithuania


Based on provisional data, the FDI flow in Lithuania in III quarter 2016, as in II quarter 2016, was positive and amounted to EUR 17.3 mln. This was determined by an increase in reinvestment by non-residents (EUR 263.7 mln). Over the first three quarters of 2016, FDI in Lithuania was on the decrease and the negative investment flow amounted to EUR 470.7 mln.


Table 1. Foreign direct investment flow into Lithuania EUR million

 

III quarter 2016

II quarter 2016

I quarter 2016

Total

17.30

33.85

521.89

Equity instruments, excl. reinvestment 

–226.30

71.67

147.77

Reinvestment

263.71

–168.35

–340.36

Debt instruments

–20.11

130.53

–329.30


In III quarter 2016, an increase was observed in FDI from Belarus (EUR 50.5 mln), Poland (EUR 38.8 mln), Finland (EUR 30.9 mln) and Sweden (EUR 26.5 mln), while the largest decrease – the Netherlands (minus EUR 68.8 mln), the United Kingdom (minus EUR 46.3 mln) and Malta (minus EUR 27.1 mln).


In III quarter 2016, the largest investment was made in manufacturing (EUR 70.3 mln), professional, scientific and technical activities (EUR 37.5 mln), wholesale and retail trade, repair of motor vehicles and motorcycles (EUR 33.3 mln), information and communication (EUR 22.2 mln), while the largest decrease was observed for investment in financial and insurance activities (minus EUR 153.8 mln).


As of 30 September 2016, cumulative FDI in Lithuania amounted to EUR 12.8 bln; over the first three quarters of 2016, the sum thereof in Lithuania decreased by EUR 714.9 mln (5.3%). FDI per capita amounted to, on average, EUR 4 470 (as of 31 December 2015, EUR 4 673).


According to the data of 30 September 2016, the largest investment in Lithuania was made by Swedish investors – EUR 2.5 bln (19.3%), Dutch – EUR 1.6 bln (12.6%), German – EUR 1.3 bln (9.8%), Norwegian – EUR 886.1 mln (6.9%), Polish – EUR 763.4 mln (6%), and Estonian – EUR 698.1 mln (5.5% of the total FDI) investors. Cumulative FDI in Lithuania from the EU member states amounted to EUR 10.5 bln (82.3%), from the euro area countries – EUR 6.5 bln (50.5%), from the CIS countries – EUR 342.5 mln (2.7% of the total FDI).


Table 2. Cumulative foreign direct investment in Lithuania
EUR million

 

2016-09-30

2016-06-30

2015-12-31

Total

12 781.90

12 859.23

13 496.82

Equity instruments

11 217.78

11 213.46

11 616.36

Debt instruments

1 564.12

1 645.77

1 880.46


According to the data of 30 September 2016, the largest investment was made in financial and insurance activities – EUR 2.9 bln (22.8%), manufacturing – EUR 2.5 bln (19.6%), real estate activities – EUR 1.8 bln (14.3%), wholesale and retail trade, repair of motor vehicles and motorcycles – EUR 1.7 bln (13.7%), information and communication – EUR 1.1 bln (8.3% of the total FDI). In manufacturing, the largest investment was made in the manufacture of refined petroleum products, chemicals and chemical products and manufacture of basic pharmaceutical products and pharmaceutical preparations – EUR 822.4 mln (32.9%), the manufacture of food products, beverages and tobacco products – EUR 487.7 mln (19.5% of the total FDI in manufacturing).


Lithuanian direct investment abroad


In III quarter 2016, Lithuanian direct investment (DI) flow abroad was negative and amounted to EUR 35.7 mln, which showed a decrease in investment. This was determined by a decrease in investment in debt instruments – EUR 56.3 mln.


Table 3. Lithuanian direct investment flow abroad
EUR million

 

III quarter 2016

II quarter 2016

I quarter 2016

Total

–35.71

–11.53

141.77

Equity instruments, excl. reinvestment 

–2.01

8.70

6.61

Reinvestment

22.62

–2.11

34.00

Debt instruments

–56.32

–18.12

101.16


In III quarter 2016, the largest investment abroad was made by Lithuanian investors in Latvia (EUR 13.9 mln), Bulgaria (EUR 5.6 mln), the Netherlands (EUR 1.9 mln) and Belarus (EUR 1.2 mln), while the largest decrease in Lithuanian DI abroad was observed in Cyprus (minus EUR 7.1 mln) and Estonia (minus EUR 6.1 mln).


In III quarter 2016, the largest investment abroad was made by Lithuanian investors in wholesale and retail trade, repair of motor vehicles and motorcycles (EUR 12.1 mln), administrative and support activities (EUR 3.6 mln), financial and insurance activities (EUR 3.5 mln), transportation and storage (EUR 3.5 mln). The largest decrease was observed in investment in professional, scientific and technical activities (minus EUR 56.4 mln).


As of 30 September 2016, Lithuanian cumulative DI abroad amounted to EUR 2.2 bln. Over the first three quarters of 2016, the sum thereof decreased by EUR 203.2 mln, or 8.5%. Lithuanian cumulative DI to the EU member states amounted EUR 2 bln (89.8%), to the euro area countries – EUR 1.5 bln (68.5%), to the CIS countries – EUR 198.8 mln (9.1% of the total Lithuanian DI abroad).


According to the data of 30 September 2016, the largest investment was made in the Netherlands – EUR 467.6 miln (21.3%), Latvia – EUR 327.8 mln (14.9%), Poland – EUR 307.1 mln (14 %) and Cyprus – EUR 271.1 mln (12.4%of the total Lithuania DI abroad).


Table 4. Lithuanian cumulative direct investment abroad

EUR million

 

2016-09-30

2016-06-30

2015-12-31

Total

2 193.86

2 383.69

2 397.09

Equity instruments

1 973.17

1 965.34

2 073.53

Debt instruments

220.69

418.35

323.56


At the end of September 2016, the largest investment abroad was made by Lithuanian investors in financial and insurance activities – EUR 647.8 mln (29.5%), wholesale and retail trade, repair of motor vehicles and motorcycles manufacturing – EUR 462 mln (21.1%), manufacturing – EUR 398.3 mln (18.2%), professional, scientific and technical activities – EUR  288.7 mln (13.2% of the total Lithuanian DI abroad). In manufacturing, the largest investment was made in the manufacture of refined petroleum products, chemicals and chemical products and basic pharmaceutical products and pharmaceutical preparations (80.4%).


More detailed statistical information on cumulative FDI in Lithuania and Lithuanian DI abroad broken down by country and economic activity is provided in the Annex.

Statistical data on foreign direct investment in IV quarter 2016 is due in March 2017.


Concepts


Equity instruments refers to company's equity capital comprised of equity securities, shares of investment funds, other assets (e.g. real estate), reinvestment, reserves included in equity capital.


Reinvestments refers to the proportion of direct investor's profit not distributed by subsidiary or partner companies in the form of dividend and profit of branches not transferred to the direct investor.


Debt instruments refers to financial instruments when it is obligatory to return the principal sum in the future and/or pay interest. It includes loans, debt securities, trade credits and advance payments, other amounts payable and receivable.

________________________________________

Annex

Table 5. Cumulative foreign direct investment by investing country

 

2016-09-30

2016-06-30

EUR million

structure, %

change, against 2016-06-30, %

EUR million

structure, %

Total

12 781.90

100.0

–0.6

12 859.23

100.0

Sweden

2 471.83

19.3

–0.1

2 475.53

19.3

Netherlands

1 607.29

12.6

–3.7

1 668.56

13.0

Germany

1 255.92

9.8

2.6

1 224.61

9.5

Norway

886.05

6.9

–1.3

898.13

7.0

Poland

763.36

6.0

4.8

728.20

5.7

Estonia

698.08

5.5

2.9

678.08

5.3

Cyprus

656.91

5.1

–4.8

690.24

5.4

Finland

606.48

4.7

7.5

563.91

4.4

Denmark

575.33

4.5

1.6

566.16

4.4

Other

3 260.65

25.6

–3.1

3 365.81

26.0








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