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Current account deficit of €14.6bn in Quarter 1 2020
The Balance of Payments current account, a measure of Ireland’s economic flows with the rest of the world, showed a deficit of €14.6bn in the first quarter of 2020. Large imports of intellectual property in the quarter, similar to Q2 and Q4 2019 have put the account in deficit.
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| Current Account |
Q4 2017 | 15.7108563131582 |
Q1 2018 | 14.0150354374873 |
Q2 2018 | 13.8390941460721 |
Q3 2018 | 12.9536795807672 |
Q4 2018 | -15.8463385447228 |
Q1 2019 | 10.7772509840293 |
Q2 2019 | -38.3864861688368 |
Q3 2019 | 12.452669962882 |
Q4 2019 | -30.7250927111529 |
Q1 2020 | -16.0401559001273 |
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normal
| Merchandise | Services | Primary Income | Secondary Income | Balance on Current Account |
Q4 2017 | 30.723 | -1.571 | -15.63 | -0.694 | 12.827 |
Q1 2018 | 28.412 | 0.608 | -16.866 | -0.991 | 11.163 |
Q2 2018 | 28.044 | -0.017 | -16.155 | -1.076 | 10.795 |
Q3 2018 | 27.258 | 1.279 | -16.675 | -0.846 | 11.016 |
Q4 2018 | 25.418 | -18.214 | -19.753 | -0.808 | -13.357 |
Q1 2019 | 30.224 | -0.079 | -19.668 | -1.324 | 9.153 |
Q2 2019 | 28.1 | -38.931 | -21.111 | -0.66 | -32.602 |
Q3 2019 | 31.604 | 0.996 | -20.096 | -0.895 | 11.609 |
Q4 2019 | 29.197 | -37.317 | -19.751 | -0.693 | -28.564 |
Q1 2020 | 34.409 | -28.156 | -19.728 | -1.081 | -14.557 |
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Other points of note in the Quarter 1 2020 results are:
Current account (see Table 1.3)
- Merchandise exports were €59,452m in the first quarter of 2020, an increase of €2,953m compared with the first quarter of 2019. Merchandise imports were €25,043m in the first quarter of 2020, a decrease of €1,232m over the same period in 2019.
- Service exports at €52,712m increased by €4,432m compared to the first quarter of 2019, mainly due to higher computer services exports (which increased by €4,356m).
- Service imports at €80,868m were up €32,509m over the same period in 2019 due to the increased R&D related intellectual property imports.
- Ireland’s trade balance at €6,252m, all goods and services exports less all goods and services imports, decreased by €23,893m in the first quarter of 2020 over the same period in 2019.
- Investment income earned abroad at €25,945m, increased by €285m compared with one year earlier while investment income payable to foreign investors at €45,910m increased by €356m. The overall income balance for the quarter at -€20,809m increased by €183m compared with the same period in 2019.
normal
| Direct Investment | Portfolio Investment | Other Investment | Reserve Assets | Balance on Financial Account |
Q4 2017 | -31.389 | -1.059 | 47.706 | 0.102 | 15.36 |
Q1 2018 | 16.74 | 19.365 | -33.684 | -0.022 | 2.399 |
Q2 2018 | 11.434 | -16.041 | 19.784 | 0.005 | 15.181 |
Q3 2018 | 15.206 | 8.493 | -15.738 | 0.209 | 8.17 |
Q4 2018 | -21.605 | 25.783 | -62.669 | 0.578 | -57.913 |
Q1 2019 | 6.121 | 10.265 | -5.096 | 0.002 | 11.291 |
Q2 2019 | -56.32 | -9.936 | 9.38 | 0.121 | -56.754 |
Q3 2019 | -5.398 | -6.617 | 16.685 | 0.125 | 4.795 |
Q4 2019 | -31.71 | 35.461 | -29.574 | 0.181 | -25.641 |
Q1 2020 | -14.702 | -83.137 | 73.562 | 0.138 | -24.138 |
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Financial account (see Tables 1.4 and 1.5)
- Direct investment in Ireland increased by €4,076m in the first quarter of 2020. This was due to equity investment of €7,516m and reinvested earnings of €9,844m which were offset by a decrease in other capital of €13,284m. Direct investment abroad decreased by €10,626m in the quarter, mainly due to decreased other capital investment abroad of €26,099m.
- Portfolio investment in foreign assets decreased by €113,863m in the quarter. Investment in foreign equity decreased by €11,680m while investment in foreign debt instruments decreased by €102,182m. Portfolio investment in Ireland decreased by €30,726m, mainly due to decreased purchase of Irish equity of €39,726m.
- Other investment assets and liabilities increased by €178,561m and €104,998m respectively in the first quarter of 2020 due to a significant increase in both IFSC enterprise assets and liabilities.
Table 1.2 Summary of Current, Capital and Financial Account Balances
Table 1.3 Current and Capital Accounts
Table 1.4 Financial Account
Table 1.5 Current, Capital and Financial Accounts showing IFSC and non-IFSC activity
Table 1.6 Current and Capital Accounts showing geographical detail
Table 1.7 Financial Account showing geographical detail
Next Chapter >> Modified Current Account 2019