Finland Times

The current account, however, showed a slight surplus in the last quarter of 2015, according to Statistics Finland's preliminary data.

Direct investment liabilities increased while the net international investment position contracted in the fourth quarter.

The current account showed a slight surplus, EUR 0.3 billion, in the last quarter of 2015 and for the whole year 2015 it was also slightly in surplus, EUR 0.3 billion.

From 2011 to 2014, the current account was clearly in deficit, the statistics show.

The exports of goods in balance of payment terms went down by four per cent in the fourth quarter from the corresponding period in the year before. The imports contracted by three per cent.

The EUR 0.3 billion surplus in the goods account was lower than in the fourth quarter of 2014 as exports decreased faster than imports.

The EUR 2.5 billion surplus in the goods account for the whole year 2015 was highest in five years as imports of goods declined faster than exports of goods.

The drop in the value of exports is explained by the decline in the value of oil products and heavily contracted Russian trade.

The service account showed a deficit of EUR 0.4 billion in the last quarter. The deficit of the service account for the whole year was EUR 1.3 billion.

The exports of services went up by four per cent from the fourth quarter of 2014. In the biggest item in exports of services, “telecommunications, computer, and information services”, exports declined by one per cent in the fourth quarter. In the whole year 2015, the exports of this item increased by 8.6 per cent.

The deficit of the service account is mainly due to EUR 0.4 billion deficit in the travel balance. In the full year, the tourism balance deficit was a record high EUR 1.6 billion because tourism income from Russia declined heavily and Finnish tourism expenditure abroad has continued growing at an annual level.  

The primary income account was EUR 0.9 billion in surplus in the fourth quarter, which is due to the surplus of investment income.

The primary income account comprises, among other items investment income, which includes, for example, interest payments and receipts, and dividends. The secondary income account was EUR 0.5 billion in deficit.

Exports of goods in balance of payment terms decreased heavily, by nine per cent from one year back and goods imports declined by eight per cent.

The goods account in balance of payment terms was EUR 0.1 billion in deficit. In January, the current account was almost in balance, EUR 0.1 billion in deficit.

Of the sub-items, the primary income account was EUR 0.3 billion in surplus. The 12-month

In the last quarter of 2015, net capital inflow to Finland amounted to EUR 4.9 billion. Inflow capital was mostly in the form of portfolio investments, EUR 4.9 billion net, and outflow capital was mostly in the form of other investments, EUR 3.5 billion.

Other investments include, for example, loans, deposits and trade credits.

During the fourth quarter, direct international investment liabilities grew by EUR 2.4 billion and assets declined by EUR 1.4 billion.

At the end of 2015, international direct investment assets on gross stood at EUR 129.6 billion and the corresponding liabilities at EUR 124.9 billion.

Finland still has slightly more direct investment assets than liabilities as, at the end of 2015, assets exceeded liabilities by EUR 4.8 billion.

The net investment position related to these investments has contracted heavily in the past two years as, at the end of 2013, direct investment assets exceeded liabilities by EUR 41.0 billion.

The change in 2015 is mainly explained by changes in intra-group loans and trade credits.

During 2015, these debt assets decreased by EUR 0.2 billion and the corresponding liabilities increased by EUR 13.7 billion.

At the end of 2015, external portfolio investment assets stood at EUR 291.3 billion, of which EUR 149.3 billion were investments in shares and mutual fund shares, and EUR 142.0 billion in bonds and money market instruments. In the fourth quarter of 2015 foreign investments in equity and mutual fund shares increased by EUR 3.4 billion and debt securities decreased by EUR 3.9 billion.

The net capital outflow from Finland of other investments, i.e. loans, deposits and trade credits amounted to EUR 3.5 billion. The net investment position related to other investments improved by EUR 3.3 billion in the fourth quarter of 2015 when the share of other adjustments, EUR -0.2 billion, is included.

At the end of the year, assets from other investments amounted to EUR 167.4 billion and liabilities to EUR 186.2 billion. Of these assets, EUR 139.5 billion and of the liabilities, EUR 155.7 billion were held by financial institutions.

At the end of December, Finland had EUR 3.2 billion net assets in financial derivatives, which is EUR 0.2 billion less than at the end of September. Derivative-related assets and liabilities decreased clearly in the fourth quarter.

At the end of December 2015, Finland had EUR 697.8 billion in foreign assets and EUR 705.8 billion in foreign liabilities. The net international investment position was negative at the end of the quarter as there were EUR 8.0 billion more liabilities than assets

In January, the net inward capital flow to Finland was EUR 1.0 billion. Inward capital flow was highest in the form of portfolio investments, altogether EUR 13.0 billion. Outward capital flow was highest in direct investments, EUR 9.9 billion.

Finland's net investment position was negative at the end of January, as foreign assets amounted to EUR 744.5 billion and foreign liabilities to EUR 752.0 billion.