Balance of payments of Luxembourg during the first three quarters of year 2019

The Central Bank of Luxembourg (BCL) and STATEC inform that the current account showed a surplus of 785 million euros in the first three quarters of 2019, an increase of 54 million compared to the same period of the previous year.

The deficit on transactions in goods has decreased by some 478 million euros, which is explained by a significant increase (+521 million euros) in net exports of merchanting. The "traditional" trade balance, however, has remained structurally in deficit and has only varied slightly (-42 million euros) over the first nine months of 2019.

The balance of international trade in services for the first nine months of 2019 amounted to 18.3 billion euros, an increase of more than 1.1 billion compared to the same period of 2018 (+ 6.4%). Three quarters of this growth comes from financial services, whose exports and imports show growth rates of + 3.8% and + 2.7% respectively. This performance is related to the growth in average net assets managed by investment funds over the same period (+3.6%). The surplus generated by non-financial services has increased by around 290 million euros (+ 6.5%), in particular due to other business services.

In the financial account, direct investment flows are still characterized by disinvestment operations for both assets (-123 billion euros) and liabilities (-99 billion euros). These operations concern a small number of SOPARFIs that restructured, ceased or relocated their activities. Regarding portfolio investment, non-resident investments in securities issued by Luxembourg (largely Investments Funds shares) have decreased, reaching 134 billion euros during the first three quarters of 2019, compared to net inflows of 157 billion euros in the same period of 2018. With regard to foreign securities, during the first three quarters of 2019, residents disposed of equity securities (net sales of 41 billion euros) in favor of debt securities (net purchases of 145 billion euros). Direct and portfolio investment flows have resulted in net inflows of 28 billion euros during the first three quarters of 2019, offset entirely by the net outflows in financial derivatives as well as in other investments (deposits and traditional credits).

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

Unit : millions of euros	January to September 2018			January to September 2019
	Credit	Debit	Balance	Credit	Debit	Balance
CURRENT ACCOUNT	240 301	239 570	731	248 022	247 237	785
Goods	14 715	15 975	-1 260	15 279	16 060	-782
General merchandise (incl. "non-monetary gold")	11 463	15 975	-4 512	11 506	16 060	-4 554
Goods under merchanting (net exports)	3 252		3 252	3 773		3 773
Services	71 595	54 357	17 238	74 935	56 591	18 345
Financial services	41 324	28 502	12 822	42 899	29 259	13 640
Non financial services	30 270	25 855	4 416	32 036	27 332	4 705
Primary income	147 143	162 444	-15 301	150 745	167 443	-16 698
Secondary income	6 848	6 794	54	7 063	7 143	-80
CAPITAL ACCOUNT	367	184	184	100	254	-153
	Assets	Liabilities	Net	Assets	Liabilities	Net
FINANCIAL ACCOUNT			915			640
DIRECT INVESTMENT	-99 427	-130 868	31 441	-123 123	-99 524	-23 598
Equity and Reinvestment of earnings	-140 413	-154 355	13 942	-108 664	-44 162	-64 502
Debt instruments	40 986	23 487	17 499	-14 459	-55 363	40 903
PORTFOLIO INVESTMENT	126 649	197 378	-70 728	103 665	108 185	-4 520
Equity securities	81 546	157 017	-75 471	-41 292	133 687	-174 979
Debt securities	45 103	40 361	4 743	144 956	-25 502	170 458
FINANCIAL DERIVATIVES			10 032			12 561
OTHER INVESTMENT	85 475	55 349	30 126	77 911	61 788	16 123
RESERVE ASSETS			44			74
ERRORS AND OMISSIONS			-1			8
source : BCL, STATEC

For further information, please contact:

• STATEC           - Mr. Bley                                           at 247-84393           

• BCL                   - « Communication » section         at 4774-4265 ou 4599

 

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