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Home BUSINESSCurrent account in surplus, net int’l investment position down in Q3
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Thu, 17 Dec, 2015 12:02:12 AM
FTimes Report, Dec 17
 
Finland’s current account and trade account. Source: Balance of payments and international investment position, Statistics Finland.
The current account was in surplus in the third quarter of 2015, despite the decrease in exports, according to Statistics Finland.
 
Financial assets and liabilities, however, decreased.
 
The current account showed a surplus of EUR 1.0 billion in the third quarter of 2015 due to the surplus in trade in goods and the primary income account as per the data derived from balance of payments and international investment position statistics.
 
Exports and imports of both goods and services decreased from the corresponding period last year.
 
In both items, imports declined more than exports.
 
The goods account in balance of payment terms was EUR 0.5 billion in surplus as exports of goods amounted to EUR 13.4 billion and imports to EUR 12.9 billion.
 
Finland’s current account and trade account, 12 -month moving sum. Source: Balance of payments and international investment position, Statistics Finland.
As a whole, exports declined by 5.0 per cent and imports by 7.0 per cent compared with the corresponding period in 2014.
 
The service account was in balance in the third quarter of 2015.
 
Exports of services amounted to EUR 5.2 billion, which was 6.1 per cent lower than in the year before.
 
Exports decreased most in charges for the use of intellectual property and in telecommunication, computer and information services.
 
The most important items in service exports were telecommunication, computer and information services, other business services and travel.
 
Imports of services decreased by 7.4 per cent and the total value of service imports amounted to EUR 5.3 billion. Imports decreased in particular in the item other business services.
 
The primary income account was EUR 1.0 billion in surplus as a result of the surplus of investment income.
 
Net investment income, covering interest payments and dividends, paid to Finnish residents from abroad amounted to EUR 0.9 billion and was mainly in the form of dividends.
 
Investment income to Finnish residents amounted to EUR 3.5 billion, while those to foreign residents were EUR 2.7 billion.
 
The secondary income account was EUR 0.4 billion in deficit, the data show.
 
In October, the current account was in balance, as the primary income account was in surplus while the service account and the secondary income account were in deficit. The 12-month moving total of the current account was EUR 0.6 billion in surplus.
 
The net outflow from Finland amounted to EUR 1.6 billion In the third quarter of 2015 as the financial account liabilities decreased more than the assets.
 
Capital outflow took place mainly in the form of other investments like loans, deposits and trade credits totalling  EUR 2.1 billion, and inflow was mainly in the form of portfolio investments, EUR 0.9 billion.
 
Finland’s international investment position monthly. Source: Balance of payments and international investment position, Statistics Finland.
At the end of September 2015, Finland had EUR 731.9 billion in foreign assets and EUR 731.1 billion in foreign liabilities.
 
The net international investment position was still positive at the end of the third quarter as there were EUR 0.8 billion more assets than liabilities.
 
Both foreign assets and liabilities have decreased in the past two quarters but both are still at a higher level compared to the end of the third quarter of 2014 when foreign assets amounted to EUR 710.0 billion and liabilities to EUR 709.8 billion.
 
Price changes related to foreign assets and liabilities cut the net international investment position by EUR 6.0 billion in the third quarter.
 
Adjustments in exchange rates and other valuation changes also weakened the net international investment position by EUR 4.1 billion.
 
When examining the international investment position at sector level, the foreign assets of money market funds and collective investment schemes, social security funds and households exceeded the liabilities.
 
Non-financial corporations, monetary financial institutions (excluding the central bank), central government and local government had more foreign liabilities than assets.
 

Table 1. External assets and liabilities by investment type in 2015 Q3, EUR billion

 

  Opening positiion 30.09.2015 Financial transactions 2015 Q3 Price changes 2015 Q3 Changes in the exchange rates and valuation adjustments 2015 Q3 Closing position 30.9.2015
Financial account 9,3 1,6 -6,0 -4,1 0,8
Assets 753,1 -22,9 9,2 -7,5 731,9
Liabilities 743,8 -24,6 15,3 -3,4 731,1
Direct investment 12,0 1,4 -1,1 -4,5 9,8
Assets 131,6 2,2 -1,1 -2,9 129,8
Liabilities 119,6 0,8 0,0 -0,4 120,0
Portfolio investment 5,5 -0,9 -4,1 -1,3 -0,8
Assets 299,4 -2,8 -9,8 -1,8 285,0
Liabilities 293,8 -1,9 -5,7 -0,4 285,8
Other investment -23,5 2,1 0,0 0,3 -21,1
Assets 206,1 -6,4 0,0 -1,3 198,4
Liabilities 229,6 -8,5 0,0 -1,6 219,5
Financial derivatives 5,8 -0,9 -0,8 -0,6 3,5
Reserve assets 9,5 0,0 -0,1 -0,1 9,3

Source: Balance of payments and international investment position, Statistics Finland.

 
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