Current account was in deficit in the first quarter of 2022

Current account

In the first quarter of 2022, the current account was EUR 2.2 billion in deficit. The four-quarter moving total of the current account was EUR 0.2 billion in surplus. The balance of goods and services showed a deficit of EUR 2.8 billion. Of the sub-items of the current account, the primary income account was EUR 1.3 billion in surplus, and the secondary income account was EUR 0.7 billion in deficit.

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Goods and services

The goods account in balance of payments terms was EUR 1.3 billion in deficit in the first quarter. In the corresponding quarter of the previous year, the goods account was EUR 0.2 billion in surplus. The service account showed a deficit of EUR 1.5 billion in the first quarter of 2022.

The value of goods exports in balance of payments terms increased by 27 per cent year-on-year and was EUR 19.3 billion, while the value of goods imports in balance of payments terms grew by 38 per cent year-on-year to EUR 20.6 billion. The value of service exports grew by 15 per cent year-on-year and was EUR 6.8 billion. The value of service imports, in turn, rose by 24 per cent from the year before to EUR 8.3 billion.

More detailed import and export figures in balance of payments terms by service item and area can be found in the statistics on international trade in goods and services starting from 2013. Decreases and increases made to the Finnish Customs figures, which result in goods trade in balance of payments terms, are also broken down in the statistics on international trade in goods and services.

Primary income

Primary income paid from abroad to Finland on net amounted to EUR 1.3 billion in the first quarter of 2022. Primary income paid from Finland abroad amounted to EUR 3.7 billion, while primary income paid from abroad to Finland totalled EUR 5.0 billion. The majority of primary income consists of property income.

In the first quarter of 2022, investment income paid to Finland on net amounted to EUR 1.3 billion, while investment income paid to Finland from abroad amounted to EUR 4.7 billion and investment income paid abroad from Finland to EUR 3.4 billion.

Financial account and net international investment position

In the first quarter of 2022, Finland had EUR 918.6 billion in foreign assets on gross and EUR 907.8 billion in foreign liabilities on gross. The net international investment position, that is, the difference between the stock of assets and liabilities, was thus EUR 10.8 billion as there were more assets than liabilities. During the first quarter of 2022, gross assets grew mainly as a result of growing stocks of other investments. Gross liabilities also increased due to the increased stocks of other investments.

The net international investment position strengthened from the previous quarter when the net international investment position was EUR -8.8 billion. Financial transactions stood for EUR 7.2 billion of the risen net international investment position, while valuation changes and other changes in the stock stood for EUR 12.3 billion.

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Financial account

In the first quarter of 2022, net capital outflow from Finland abroad amounted to EUR 7.2 billion. Net capital outflow from Finland abroad was highest in the form of portfolio investments, EUR 9.1 billion. Net capital inflow to Finland from abroad was in the form of other investments, EUR 5.7 billion.

Net international investment position

Examined by type of investment, there were most foreign assets on gross in the form of portfolio investments at the end of the first quarter of 2022. Portfolio investment assets grew from the previous quarter. At the end of the first quarter of 2022, there were EUR 421.5 billion in portfolio investment assets, while gross assets amounted to EUR 417.3 billion in the previous quarter. EUR 137.0 billion of the portfolio investment assets were in debt securities, and EUR 284.6 billion in shares and mutual fund shares.

The share of portfolio investments is also biggest in foreign liabilities on gross. Portfolio investment liabilities amounted to EUR 452.4 billion at the end of the first quarter of 2022. The stock of portfolio investment liabilities on gross fell from the previous quarter, when the stock was EUR 471.4 billion. At the end of the first quarter, portfolio investment liabilities amounted to EUR 260.2 billion in the form of debt securities and to EUR 192.2 billion in the form of shares and mutual fund shares.

When examining the net international investment position by type of investment, it can be seen that the biggest net assets were in direct investments, while the largest net liabilities were in the form of portfolio investments. At the end of the first quarter of 2022, net assets in direct investments amounted to EUR 46.3 billion and net liabilities in portfolio investments to EUR 30.9 billion. The large net liability of portfolio investments is explained by the net liabilities of EUR 123.2 billion in debt securities. Assets in shares and mutual fund shares were EUR 92.3 billion bigger than liabilities.

When the net investment position is examined by investor sector, employment pension schemes had the most foreign net assets, EUR 190.3 billion. The net assets of employment pension schemes fell from the previous quarter, when net assets amounted to EUR 192.1 billion. The difference between the stocks is mainly explained by valuation changes. Net liabilities were held most by other monetary financial institutions, EUR 174.3 billion. The net investment position of other monetary financial institutions weakened from the previous quarter mainly due to the increased net liability of other investments.