the flow of foreign direct investment (FDI) in Lithuania amounted to €449.7 million in Q4 2022, which was driven by the growth in reinvestments (€622.3 million). During the period under review, the largest increase in investment was observed for the UK (€302.7 million), Swedish (€124.8 million) and Latvian (€119.3 million) capital companies, whereas the sharpest decline was recorded for Polish (€204.7 million) capital companies. In terms of economic activity, investments in manufacturing (€231.4 million) as well as financial and insurance activities (€142.1 million) were the ones to stand out.
Over the course of 2022, the flow of FDI amounted to €2 billion and, compared with 2021, fell by 15.5% owning to a plunge in reinvestments, which had failed to offset the growth in debt instruments;
FDI income by non-residents amounted to €745.7 million in Q4 2022 and was 3% lower year on year. The bulk of income was reinvested (€622.3 million). The largest share of FDI income was earned by Swedish (€162.9 million) and the UK (€132.8 million) investors. Over 2022, FDI income increased by 5.9% to €3 billion;
cumulative FDI in Lithuania grew by 9.7% over the year and amounted to €29.7 billion, or 44.4% of GDP, as at 31 December 2022. By comparison, accumulated FDI in Latvia amounted to €22.6 billion and to €32.8 billion in Estonia. FDI per capita in Lithuania amounted to an average of €10,397 (as at 31 December 2021 – to €9,661). Compared with FDI per capita in Latvia, Lithuania is not far behind, but there is a significant gap in comparison to Estonia (see Chart 1). At the end of Q4 2022, the largest investors in Lithuania included Germany (€5.6 billion), Sweden (€3.2 billion), Estonia (€3.1 billion), the Netherlands (€2.5 billion) and the UK (€2 billion). The largest share of investments (34.7%) was attracted by companies engaged in financial and insurance activities;
the flow of Lithuania’s DI abroad was positive in Q4 2022 and amounted to €49.6 million. The largest investment flows were recorded for Poland (€57.2 million). In terms of economic activity, the largest investments were directed to enterprises in administrative and support service activities (€28.1 million), wholesale and retail trade as well as repair of motor vehicles and motorcycles (€17.1 million);
DI income earned by Lithuanian investors abroad in Q4 2022 amounted to €53.5 million. The majority of these (€35.2 million) were reinvested earnings. The largest share of income was earned from investments in Latvia (€47.7 million), and, in terms of economic activity, from undertakings in electricity, gas, steam supply and air conditioning (€14.7 million) as well as information and communication activities (€12 million). Investment income received from companies engaged in wholesale and retail trade as well as repair of motor vehicles and motorcycles decreased by 85.4% (see Chart 2). Throughout the year, Lithuania’s DI income abroad amounted to €177.8 million;
Lithuania’s cumulative DI abroad grew by 4.4% over the year and stood at €10.6 billion as at 31 December 2022. Lithuania’s DI in EU Member States accounted for 53.7%, in euro area countries – for 43.6%, whereas in the US – for 40.4% of Lithuania’s total DI abroad. The largest share of Lithuania’s cumulative DI abroad (49.4% or €5.2 billion) went to companies engaged in professional, scientific and technical activities.
