Banks, Financial Services, Investments, Lithuania

In 2014, the CAB deficit built up for a third time. The increasing official reserve assets resulted in a positive balance of payments financial account balance, amounting to EUR 94.4 million, the Bank of Lithuania announced.

In Q4 2014, growth in foreign assets and financial liabilities was recorded (2.4% and 1.9% respectively) quarter on quarter. In Q4 2014 Lithuania's gross external debt increased by 0.7% and at the end of 2014 amounted to 69.9% of GDP, while the country's net external debt – 29.2% of GDP.

It should be noted that the BOP for Q4 2014 has included revised data of the BOP for Q1-Q3 2014.

In Q4 2014, CAB deficit in the country's balance of payments amounted to EUR 36.8 million (-0.4% of GDP). The EUR 164.6 surplus recorded in Q3 2014 led to the 2014 CAB surplus being EUR 44.9 million (0.1% of GDP). The CAB surplus recorded in Q4 2013 and 2013 was EUR 403.5 million (4.5% of GDP) and EUR 559.8 million (1.6% of GDP), respectively.

In Q4 2014, foreign trade deficit in the country's BOP amounted to EUR 522.1 million, increasing by EUR 265.2 million quarter on quarter. This was due to growth in the import of goods (4%), while export of goods remained unchanged.

In Q4 2014, export of goods to the European Union (EU) increased by 2.1%, whereas that to CIS countries dropped by 6.9% quarter on quarter. Import of goods from EU countries decreased by 2.4%, whereas that from CIS countries increased by 1.8%. Over 2014, the export of goods to EU countries fell by 2.0%, but grew to CIS countries by 1.8% year on year. Import of goods from EU countries rose by 7.4%, whereas that from CIS countries contracted by 15% in the reference period.

In Q4 2014, the net negative direct investment flow (EUR –177.2 million) was due to the EUR 157.3 million increase in net liabilities to non-residents and the EUR 19.8 million decrease in claims to non-residents. The net negative (EUR –190.6 million or –0.5% of GDP) investment outflow recorded in 2014 resulted from the positive EUR 486.1 million reinvestment flow in Lithuania and the EUR 125.6 million increase in debt instrument requirements to non-residents.

The flow of foreign direct investment (FDI) in Lithuania amounted to EUR 157.3 million (1.7% of GDP) in Q4 2014 and EUR 299.8 million (0.8% of GDP) in 2014. In 2013, FDI inflows into Lithuania stood at EUR 531.2 million (1.5% of GDP). In Q4 2014, direct investment abroad contracted by EUR 19.8 million, while in 2014, a EUR 109.2 million growth in direct investment assets abroad of Lithuania's economic entities was recorded.

As of 31 December 2014, accumulated FDI in Lithuania amounted to more than EUR 13 billion, or EUR 4,454 per capita on average.