
Lithuania: CAB’s exposed to primary-income, export, and investments flow
The growth in the deficit was due to the payment of dividends, while the increase in the foreign trade deficit resulted from a decline in exports.
The growth in the deficit was due to the payment of dividends, while the increase in the foreign trade deficit resulted from a decline in exports.
The deficit on the CAB shrank 4.5 times, thanks to a dramatic plunge in the foreign trade and the increasing surplus on the balance of services.
The amount of payment transactions of EMIs and PIs grew strongly in Q1 2022 and was double the level of a year ago. Revenues grew 3.5 times.
Following a rapid recovery from the pandemic, the Lithuanian economy faces the economics of the conflict in Ukraine in a strong position.
In March the deficit in the CAB was up by 2.6 times due to an increase in the foreign trade deficit. The annual inflation growth rate stands at 15.6%.
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In Lithuania, the inflation rate reached around 11% in early 2022, and heating bills are expected to increase by 50% to 60%.
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Last December the surplus on the CAB contracted to €66.5 million due to a significant widening of the foreign trade deficit.
Lithuanian export of goods rose more rapidly than imports. The largest share of FDI was attracted by companies in financial and insurance activities.