January 4, 2023
Review of foreign direct investment for III quarter 2022
Statistics Lithuania and the Bank of Lithuania announce provisional data on foreign direct investment for III quarter 2022.
In III quarter 2022, the flow of foreign direct investment (FDI) in Lithuania amounted to EUR 483.3 million, which was driven by the growth in reinvestments (EUR 531 million). During the period under review, the largest increase in investment was observed for Polish (EUR 171 million), Swiss (EUR 164.7 million) and Swedish (EUR 152.3 million) capital companies, whereas the sharpest decline was recorded for Cypriot (EUR 90.7 million) capital companies. The FDI flow from Russia remained negative in III quarter 2022, amounting to EUR 19.8 million. In terms of economic activity, investments in manufacturing (EUR 340 million) as well as financial and insurance activities (EUR 166.8 million) were the ones to stand out.
In III quarter 2022, FDI income by non-residents amounted to EUR 792.4 million, a year-on-year increase of 10 per cent. The largest share of FDI income was earned by the UK (EUR 197.8 million), Cypriot (EUR 126.6 million) and Swedish (EUR 109.4 million) investors.
Cumulative FDI in Lithuania rose by 11.2 per cent over a year and amounted to EUR 28.9 billion, or 44.7 per cent of GDP, as at 30 September 2022. FDI per capita in Lithuania amounted to an average of EUR 10,173 (as at 30 September 2021 – to EUR 9,244). At the end of III quarter 2022, the largest investors in Lithuania included Germany (EUR 5.6 billion), Sweden (EUR 3.1 billion), Estonia (EUR 2.9 billion) and the Netherlands (EUR 2.5 billion) (see Chart 1). The largest share of FDI (35.1 per cent) was attracted by companies engaged in financial and insurance activities.
The flow of Lithuania’s DI abroad was positive and totalled EUR 97.1 million over the reporting period. In terms of economic activity, a significant share of the flow resulted from investment in financial and insurance (EUR 30 million) and wholesale and retail trade; repair of motor vehicles and motorcycles (EUR 29.3 million).
In III quarter 2022, DI income earned by Lithuanian investors abroad amounted to EUR 100.2 million. The majority of these (EUR 66 million) were reinvested earnings. The largest share of income was earned from investments in Latvia (EUR 56.6 million), and in terms of economic activity – from enterprises operating in wholesale and retail trade as well as repair of motor vehicles and motorcycles (EUR 52.5 million) and financial and insurance activities (EUR 22 million).
Lithuania’s cumulative DI abroad grew by 7.3 per cent over the year and stood at 10.4 billion as at 30 September 2022 (see Chart 2). Lithuania’s DI in the EU Member States accounted for 52.7, in the US – 40.9 per cent of Lithuania’s total DI abroad. The largest share of Lithuania’s cumulative DI abroad (50.8 per cent or EUR 5.3 billion) went to companies engaged in professional, scientific and technical activities.
Source: Bank of Lithuania, Statistics Lithuania
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