Analytics, Banks, Financial Services, Good for Business, Investments, Lithuania, Statistics

The foreign direct investment (FDI) flow in Lithuania amounted to EUR 153.4 mln; q-o-q, this investment fell quite substantially (about 2 times), although the investment flow remained positive. The positive FDI flow in Q1 2017 was due to an increase in investment in debt instruments (EUR 177.6 mln) and equity instruments (EUR 26.2 mln). Investment in FDI debt instruments from Sweden and the USA grew the most, with its flows standing at EUR 85.8 mln and EUR 62.9 mln respectively. Meanwhile, the largest flow of investment in equity instruments (EUR 53.6 mln) came from Estonia. The largest fall in the FDI flow from Poland (EUR –214.3 mln) in Lithuania was due to repaid debt instruments and paid out dividends to investors;

the largest FDI flow in Lithuania was in manufacturing – EUR 164.9 mln (of which EUR 121.5 mln – in refined petroleum, chemical and pharmaceutical preparations) and wholesale and retail trade; EUR 51.5 mln – in repair of motor vehicles and motorcycles; financial and insurance activities posted the least fall in FDI (EUR –138.5 mln), which was on account of a decline in reinvestment due to paid out dividends to investors;

FDI income from non-resident investment in Lithuania amounted to EUR 325.8 mln over Q1 2017. Sweden, Poland and the Netherlands earned the largest FDI income in Lithuania (EUR 90.7 mln, 46.6 mln and EUR 41.7 mln respectively). Most dividends over the quarter were paid out to Swedish (EUR 203.3 mln) and Polish (EUR 139.6 mln) investors, while Estonia earned most income from debt instruments (EUR 2.3 mln). The largest reinvestments were made by investors from the Netherlands (EUR 40.4 mln), Germany (EUR 19 mln) and Norway (EUR 13.6 mln);

 As of 31 March 2017, cumulative FDI in Lithuania amounted to EUR 13.2 bln. It increased by 1.2% over the quarter. FDI per capita amounted to an average of EUR 4,673 (as of 31 December 2016 – EUR 4,588). Major investing countries remained the same as in the previous quarter: Sweden, the Netherlands, Germany, with their cumulative investment amounting to EUR 2.6 bln, EUR 1.7 bln and EUR 1.3 bln respectively;

Lithuania’s direct investment (DI) flow abroad was on the rise, its flow amounting to EUR 4.4 mln. Its growth was driven by an increase in reinvestment abroad (EUR 22.2 mln). Reinvestment growth was due to investments in the Netherlands (EUR 12.7 mln) and Russia (EUR 9.3 mln). In Q1, Lithuania’s negative investment flow abroad in debt instruments stood at EUR 18.3 mln. Investment in debt instruments decreased the most in Cyprus (EUR –37.1 mln), increasing the most in Estonia (EUR 15 mln);

In the reference period, the largest DI flow was into wholesale and retail trade; repair of motor vehicles and motorcycles (EUR 15 mln), as well as investment in financial and insurance activities (EUR 11.3 mln). Investment in professional, scientific and technical activities posted the largest decline (EUR –21 mln) due to repaid debt instruments.

DI income, earned by Lithuanian investors from investment abroad, amounted to EUR 28.2 mln. Most income was earned from investment in the Netherlands (EUR 10.5 mln), Russia (EUR 10.4 mln) and Latvia (4.9 mln). The largest dividends from investment were recorded in Russia, Germany and France (EUR 1.3 mln, 0.8 mln and EUR 0.6 mln respectively).

 As of 31 March 2017, Lithuania’s cumulative DI abroad amounted to EUR 2.3 bln. Lithuania’s cumulative DI in EU countries accounted for 89.1% of Lithuania’s total investment abroad, in euro area countries – 71.3%. The largest investment was made in Luxembourg (confidential data), the Netherlands (EUR 422.1 mln), Latvia (EUR 355.8 mln), Poland (EUR 298.3 mln), Cyprus (EUR 234.1 mln) and Estonia (EUR 170.4 mln). Direct investment data for Q2 2017 and revised data for Q1-Q4 2016, as well as for Q1 2017 will be published in September 2017.