Current account posts large surplus in October

Current account

Financial account and international investment position

Capital inflows in October exceeded outflows by EUR 6.0 billion. Since the beginning of the year (January – October) there has been a net capital inflow of EUR 21.0 billion. In October, there was a net inflow of EUR 4.8 billion in portfolio investment, of which government bonds and money market instruments accounted for EUR 4.7 billion. Direct investment and other investments (loans, deposits and trade credits) each recorded a net capital inflow of EUR 0.4 billion. There was also a net capital inflow of EUR 0.3 billion from derivatives trading. 

At the end of October, Finnish residents’ foreign liabilities exceeded their foreign assets by EUR 7.2 billion. Gross assets amounted to EUR 423 billion, and gross liabilities to EUR 430 billion. The external liabilities of non-financial corporations, monetary financial institutions (MFIs), central government and local government exceeded their external assets. In contrast, the external assets of other financial institutions, employment pension funds and households exceeded their external liabilities. At the end of October, Finnish residents’ securities-based liabilities exceeded their securities-based assets by EUR 37.1 billion. Other liabilities (loans, deposits and trade credits) also exceeded assets, in the amount of EUR 6.2 billion. In contrast, direct investment assets exceeded liabilities by EUR 26.8 billion.

At the end of October, Finnish residents’ foreign liabilities exceeded their foreign assets and Finland’s net international investment position (gross assets minus gross liabilities) excluding equity items was negative, in the amount of EUR 36 billion.