Analytics, Economics, EU – Baltic States, Investments, Lithuania, Statistics

International Internet Magazine. Baltic States news & analytics Saturday, 19.10.2019, 13:03

Financial and insurance enterprises reduced foreign direct investment in Lithuania

Lina Volbikaitė Chief Specialist, International Trade and Foreign Investment Statistics Division Statistics Lithuania, Sigutė Samaitienė Senior Statistician, External Statistics Division Statistics Department of the Economics and Financial Stability Service Bank of Lithuania, 04.07.2019.Print version
Statistics Lithuania and the Bank of Lithuania publish provisional data on direct investment for I quarter 2019.

Foreign direct investment (FDI) flow, in I quarter 2019, in Lithuania amounted to EUR 64.7 mln and, against the respective period in 2018, decreased by 82 per cent. The largest investment flows came from Estonia (EUR 791.3 mln), Denmark (EUR 71.6 mln) and Poland (EUR 56 mln), while the largest negative investment flows were recorded in capital enterprises of Sweden (minus EUR 822.8 mln) and Hong Kong (minus EUR 61.5 mln). This was mainly influenced by restructuring several foreign banks, performing their activities in Lithuania, into bank affiliates. In terms of activity, the largest flows were recorded in companies engaged in real estate transaction activities (EUR 64.6 mln), professional, scientific and technical activities (EUR 31.3 mln), while negative flows – in enterprises engaged in financial and insurance activities (minus EUR 78.9 mln).

FDI income from non-resident investment in Lithuania, in I quarter 2019, against the respective period in 2018, decreased by 31.8% and amounted to EUR 284.9 mln (see Chart 1). Paid dividends accounted for the largest share of FDI income.

Cumulative FDI in Lithuania amounted to EUR 15.5 bn, or 33.9% of GDP, as at 31 March 2019. FDI per capita amounted to an average of EUR 5,568 (as at 31 March 2018 – EUR 5,416). Estonia is third on the list of top 10 major investors in Lithuania (see Chart 2).

In I quarter 2019, the flow of Lithuania’s direct investment (DI) abroad amounted to EUR 124.4 mln. The largest investment flows were recorded in Latvia (EUR 37.5 mln), Estonia (EUR 25.9 mln) and Sweden (EUR 21.1 mln). This was mainly influenced by increasing investment in companies engaged in wholesale and retail trade; repair services of motor vehicles and motorcycles (EUR 41.9 mln).

DI income earned by Lithuanian investors abroad amounted to EUR 46.1 mln in I quarter 2019. Reinvestment accounted for the largest share of income (EUR 37.7 mln).

Lithuania’s cumulative DI abroad amounted to EUR 3.9 bn as at 31 March 2019. Lithuania’s DI in the EU Member States accounted for 89.2%, in the euro area countries – 64.7% of Lithuania’s total DI abroad.

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