Balance of payments of Luxembourg in 2016
The Central Bank of Luxembourg (BCL) and STATEC inform that, according to preliminary provisional results, the current account for 2016 resulted in a surplus of 2.6 billion euros, corresponding to an almost 5% drop compared to 2015.
The trade deficit increased in 2016 and amounts to -3.3 billion euros (compared to -2.6 billion in 2015). Among others, this development can be explained by the significant decline in net exports of goods under merchanting (-1.2 billion euros respectively -39% compared to 2015).
During 2016, the surplus of international trade in services rose by 1.3% and settled at 20.6 billion euros (against 20.4 billion in 2015). However, in 2016, both exports and imports of services showed a slight drop compared to 2015, which had not been the case since 2008/2009. Restructuring within e-commerce companies and their gradual departure partly explains this development.
In the financial account, net inflows of capital in the portfolio investments declined in 2016 (120 billion euros) compared with 2015 (164 billion euros). The increased volatility of the financial markets at the beginning of 2016 resulted in a decline in non-residents' investments in equity securities issued by Luxembourg (mostly Investments Funds shares), which reached 128 billion euros in 2016, compared to 315 billion euros in 2015. Purchases of debt securities by non-residents also declined to 57 billion euros in 2016, compared with 122 billion euros in 2015. Net inflows on securities issued by Luxembourg thus sharply fell in 2016 down to 186 billion euros from € 437 billion in 2015.
With regard to foreign securities, residents similarly sharply reduced their investments in 2016, which totalled 65 billion euros compared to 73 billion euros in 2015.
Net inflows in portfolio investments were all compensated by net outflows of 122 billion euros in the other investments (loans and traditional deposits), in the direct investments flows as well as in the financial derivatives flows.
Detailed statistical tables are available on BCL’s website (www.bcl.lu) as well as on the website of STATEC (www.statistiques.lu).
Table: Balance of payments of Luxembourg