Cumulative FDI in Lithuania rose by 4.1% over the year and amounted to €19.3 billion or 39.6% of GDP on 31 December 2020. FDI per capita amounted to €6,912 on average (on 31 December 2019 – €6,644). Sweden (€3.6 billion), Estonia (€2.8 billion) and the Netherlands (€2.1 billion) remain the largest investors. The largest share of FDI was attracted by enterprises engaged in financial and insurance activities (€5.1 billion) and manufacturing (€3.1 billion).
Lithuania’s cumulative DI abroad declined by 2.6% over the year and amounted to €4.2 billion as at 31 December 2020. Lithuania’s DI in EU Member States accounted for 85.5% and in euro area countries – 70.1% of Lithuania’s total DI abroad. The largest investments were made in Latvia (€1.1 billion), Cyprus (€886.8 million) and Estonia (€859.3 million), reads the recent data jointly published by the Bank of Lithuania and Statistics Lithuania.
The flow of FDI in Lithuania was negative in Q4 2020 and amounted to –€25.7 million. This was determined by the negative flow of debt instruments (–€506.6 million), which was not offset by the positive flows of equity instruments (€20.4 million) and reinvested earnings (€460.5 million). During the period under review, the largest increase in investment was observed for Hong Kong (€76.2 million), the US (€69.4 million) and Swedish (€42.4 million) capital companies, whereas the largest decline was recorded for the UK (–€294.8 million) companies.
In terms of economic activity, the largest flows were directed to enterprises engaged in professional, scientific and technical (€136.4 million) activities as well as in information and communication (€58.3 million) activities, whereas investment in manufacturing enterprises contracted (–€205.9 million).
FDI income from non-resident investment amounted to €530.2 million in Q4 2020, a year-on-year increase of 15.9%. The largest growth was observed in reinvested earnings, which increased by 26.7%, however, dividends declined by 32.2%. The largest share of FDI income was earned by Swedish (€99.7 million) and Dutch (€82.6 million) investors.
The flow of Lithuania’s DI abroad was positive in Q4 2020 and amounted to €5.9 million. The largest investment flows were recorded for Poland (€10.9 million) and Estonia (€7.4 million). In terms of economic activity, the largest investments were directed to enterprises in wholesale and retail trade as well as repair of motor vehicles and motorcycles (€36.2 million).
DI income earned by Lithuanian investors abroad amounted to €54.7 million in Q4 2020. The largest share of income was earned from investment in Latvia (€27.1 million) and in terms of activity – from enterprises operating in wholesale and retail trade as well as repair of motor vehicles and motorcycles (€30.1 million).
