Seðlabanki

Balance of payments and external debt

According to provisional figures, the current account of the balance of payments from January to September 2002 was 2.6 billion kronur in surplus, compared to a deficit of 36 billion kronur during the corresponding period in 2001. At fixed exchange rate, the current account balance improved by 38 billion kronur from the previous year. A surplus of 4.1 billion kronur was registered in the third quarter, a sharp reversal from the third quarter 2001, when a deficit of 6.7 billion kronur was registered. In the first nine months of 2002, exports of goods and services rose by 6.4%, but imports declined by 5.2%. As a result of falling interest rates abroad and rising receipts from foreign investment, the deficit on the balance on income shrunk considerably, from 22.5 billion kronur in the first nine months of 2001 to 12.5 billion kronur during the corresponding period this year.

On the capital and financial accounts, there was a deficit of 2.6 billion kronur. Outward foreign direct investment amounted to 6.5 billion kronur, residents purchased foreign securities for 18.3 billion kronur, a sharp increase from the previous year, and the Central Bank reserves rose by 17.9 billion kronur, largely because of short-term movements in the Treasury's borrowing operations. Other investment, such as trade credits, foreign deposits and lending to non-residents also rose considerably. On the other hand, there was a substantial inflow of capital from foreign borrowing, bank loans and bond issues.

At the end of September, net external liabilities amounted to 556.5 billion kronur, 31 billion kronur lower than at year end 2001. This was the result of the appreciation of the krona and the current account surplus during the period.

The balance of payments in million of kronur

Nr. 17/2002
December 6, 2002