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Balance of payments at €1.6bn surplus



Luxembourg’s central bank (BCL) on Tuesday released its report on the balance of payments for the first three quarters of 2021 Library photo: Christophe Lemaire / Paperjam

Luxembourg’s central bank (BCL) on Tuesday released its report on the balance of payments for the first three quarters of 2021 Library photo: Christophe Lemaire / Paperjam

Luxembourg’s balance of payments--the transactions of the country’s economy with the rest of the world--showed a surplus of €1,655m at the end of the first three quarters of 2021, Statec and the central bank (BCL) said on Tuesday.

The goods surplus stood at €1,135m, with increased in exports (9%) and imports (12%). The balance of international trade in services increased by 10% in the first three quarters of 2021 (+€1,637m)

Different sectors fared more or less well in this growth, however. Trade in non-financial services, for example, increased 4% for exports and 3% for imports. International trade in financial services posted stronger growth, with +16% for exports and +19% for imports.

Direct investment flows saw losses for assets (-€118bn) and liabilities (-€106bn).

Transactions in Luxembourg equities, resulted in net inflows of €339bn during the first three quarters of 2021, compared with net inflows of €135bn in the same period in 2020 as financial markets improved.

Debt securities, on the other hand, continued to experience net sales, reaching €23bn during the first three quarters of 2021. Transactions in foreign equity securities resulted in net purchases of €173bn during the first three quarters of 2021, compared to net purchases of €3bn in the same quarters of 2020.

Foreign debt securities underwent net purchases, amounting to €103bn during the first three quarters of 2021, an amount almost identical to that recorded over the same period in 2020.

Overall, the balance of payment surplus was down €1,561m compared to the same period of the previous year, the BCL and Statec said.