Bank of Lithuania reports Lithuania returned to a current account deficit in Q1 2025

The Bank of Lithuania published Lithuania’s balance of payments data for the first quarter of 2025, showing the current account balance moved into deficit at EUR 99.0 million, or -0.5% of gross domestic product (GDP), after four consecutive quarters in surplus. The shift was driven by larger deficits on primary and secondary income that outweighed positive trade and services balances. The goods trade deficit widened by 3.2% to EUR 1.6 billion as imports rose faster than exports (EUR 376.9 million versus EUR 326.0 million), while the services surplus increased by 1.4% to EUR 2.2 billion as services imports fell more than exports (down 11.6% and 7.0% respectively). The primary income deficit rose 3.3 times to EUR 469.6 million, mainly reflecting an investment income deficit of EUR 515.4 million and a reduced surplus on other primary income to EUR 41.2 million linked to lower European Union agricultural subsidies. The secondary income deficit increased to EUR 161.0 million, reflecting lower EU financial support to general government alongside higher EU budget contributions and transfers of value added tax and gross national income-based own resources. Elsewhere, the capital account surplus declined to EUR 199.2 million from EUR 550.1 million in Q4 2024, and net financial account investment flows were negative at EUR 395.3 million (-2.1% of GDP), driven by a EUR 1.3 billion fall in official reserve assets and negative net direct and portfolio investment flows (EUR 257.2 million and EUR 112.6 million), partly offset by a positive other investment net flow of EUR 1.3 billion. At end-Q1 2025, the net international investment position was -EUR 82.0 million (-0.1% of GDP), gross external debt was EUR 66.0 billion (82.9% of GDP), and net external debt was -EUR 9.7 billion (-12.2% of GDP).