In value terms, imports of goods, which grew faster than exports (EUR 360.8 million and EUR 342.8 million respectively), pushed up the foreign trade deficit by 1.7%, which totalled EUR 1.1 billion. Compared to the previous quarter, as imports of services (5.7%) grew faster than exports (3.0%), the surplus on the balance of services decreased by 1.0% and stood at EUR 2.3 billion.
The deficit on primary income balance went up by 17.4% to EUR 651.7 million. This was influenced by the balance of other primary income which turned from deficit to surplus as a result of a decrease in the European Union’s (EU) subsidies for agriculture and an increase in the deficit on the investment income balance.
The deficit on secondary income balance contracted by 16.8% to EUR 58.3 million; this was influenced by a drop in foreign support received by general government and calculated contributions to the EU budget.
For comparison: a year ago, the CAB was also in surplus and stood at EUR 368.8 million, or 1.9% of GDP at current prices.
The surplus on the capital account balance contracted by 12.7%, compared to the previous quarter, and amounted to EUR 205.4 million. This was a result of decreased transfers from EU structural support funds dedicated to financing investment projects. In the third quarter of 2023, the surplus on the capital account balance amounted to EUR 255.4 million.
Iver the reporting period, the net flow of financial account investment was positive and stood at EUR 331.2 million, or 1.6% of GDP. It was triggered by positive net other investment and portfolio investment flows as well as an increase in official reserve assets (EUR 874.8 million, EUR 174.1 million and EUR 111.9 million respectively). The impact of these positive flows was mitigated by a negative net flow of direct investment (EUR 803.2 million).
For comparison: in the third quarter of 2023, the net flow of financial account investment was positive and stood at EUR 2.0 billion, or 10.0% of GDP at current prices.
The net international investment position was positive and amounted to EUR 1.0 billion, or 1.3% of GDP, at the end of the third quarter. It was negative a year ago, amounting to EUR 3.1 billion, or 4.3% of GDP at current prices;
At the end of the reporting period, Lithuania’s gross external debt stood at EUR 56.4 billion, or 73.4% of GDP, while the net external debt amounted to -EUR 10.1 billion, or -13.1% of GDP, i.e. Lithuania’s assets abroad exceeded foreign liabilities.
For comparison: a year ago, Lithuania’s gross external debt stood at EUR 47.7 billion, or 66.0% of GDP, while the net external debt amounted to -EUR 7.9 billion, or -10.9% of GDP.