The current account deficit measured 95.2 b.kr. in Q4/2024. This represents a deterioration of 147.4 b.kr. relative to the previous quarter and 77.7 b.kr. relative to Q4/2023. There was a deficit on goods trade in the amount of 104.1 b.kr and a 34.5 b.kr. surplus on services trade. The deficit on primary income was 10.5 b.kr., and the deficit on secondary income was 15.1 b.kr.
Table 1. Balance of payments
| B.kr. | 2023/4 | 2024/1 | 2024/2 | 2024/3 | 2024/4 |
|---|---|---|---|---|---|
Current account balance | -17,5 | -34,6 | -39,3 | 52,3 | -95,2 |
Balance on goods | -77,8 | -51,6 | -87,2 | -71,6 | -104,1 |
Balance on services | 34,1 | 18,1 | 67,9 | 141,2 | 34,5 |
Balance on primary income | 39,1 | 10,2 | -5,4 | -4,9 | -10,5 |
Secondary income, net | -13,0 | -11,3 | -14,6 | -12,4 | -15,1 |
Capital account | -1,4 | -0,8 | -1,4 | -0,4 | -1,2 |
Financial account | -4,2 | 35,9 | -40,9 | 65,8 | 79,4 |
Direct investment | 21,3 | 9,0 | -16,4 | -18,1 | 15,7 |
Portfolio investment | 96,0 | -191,6 | 105,4 | 27,5 | 109,6 |
Derivatives | -3,7 | 0,1 | 1,5 | -2,8 | -3,6 |
Other investments | -121,8 | 98,5 | -110,1 | 69,1 | -52,3 |
International reserves | 4,0 | 119,8 | -21,4 | -9,9 | 9,9 |
Net errors and omissions | 14,7 | 71,3 | -0,3 | 14,0 | 175,7 |
At the end of Q4, the net international investment position was positive by 1,963 b.kr., or 42.5% of GDP. It improved by 120 b.kr., or 2.6% of GDP, during the quarter. External assets totalled 6,549 b.kr. at the end of the quarter, and external liabilities were 4,586 b.kr. The position improved by 79 b.kr. during the quarter, owing to financing activities. Foreign assets increased by 140 b.kr. and foreign liabilities by 61 b.kr. Price and exchange rate movements during the quarter increased asset values by 21 b.kr. and reduced the value of liabilities by 30 b.kr., thereby yielding an improvement of 51 b.kr. in the net external position. The króna appreciated during the quarter by just under 3.5% in terms of the trade-weighted index. Prices in foreign securities markets fell by 0.4% between quarters, and prices in the domestic stock market rose by 16.3%
Table 2. Quarter-on-quarter change in international investment position
| Position at end-Q3/2024 | Financial account | Exchange rate and price changes | Other changes | Position at end-Q4/2024 | |
|---|---|---|---|---|---|
b.kr. | |||||
Foreign assets, total | 6,383 | 140 | 21 | 5 | 6,549 |
Direct investment | 1,062 | 27 | -26 | 20 | 1,083 |
Portfolio investment | 3,687 | 144 | 82 | 0 | 3,912 |
Derivatives* | 16 | -4 | 4 | 1 | 17 |
Other investments | 720 | -37 | -16 | -16 | 650 |
International reserves | 899 | 10 | -23 | 0 | 886 |
Foreign liabilities, total | 4,540 | 61 | -30 | 15 | 4,586 |
Direct investment | 1,750 | 11 | -5 | 9 | 1,765 |
Portfolio investment | 1,528 | 35 | -17 | 0 | 1,545 |
Derivatives* | 10 | 0 | -1 | 0 | 11 |
Other investments | 1,253 | 15 | -9 | 6 | 1,264 |
Net international investment position (NIIP) | 1,843 | 79 | 51 | -10 | 1,963 |
% of GDP | 39.9% | 1.7% | 1.1% | -0.2% | 42.5% |