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Balance of International Payments

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Current account balance of €23bn in Quarter 3 2021

Table 1.1 Balance of International Payments€ million
 Merchandise BalanceServices and Income BalanceCurrent Account BalanceCurrent Account Balance as % of GDP
Q3 202037,895-22,60815,28715.1
Q3 202145,728-22,46923,25920.4
     
Q1-Q3 2020109,828-130,611-20,782-7.5
Q1-Q3 2021131,666-74,37357,29218.1

The Balance of Payments current account, a measure of Ireland’s economic flows with the rest of the world, showed a surplus of €23bn in the third quarter of 2021. Increased Goods for processing exports have contributed to the current account surplus.

Current Account
Q2 2019-39.588582343147
Q3 201912.465483158424
Q4 2019-63.5161880916754
Q1 2020-49.2835487394886
Q2 202011.6541962287259
Q3 202015.1416633507514
Q4 202011.5649766415266
Q1 202118.7554005669862
Q2 202114.9107252837727
Q3 202120.3856468139779
MerchandiseServicesPrimary IncomeSecondary IncomeBalance on Current Account
Q2 201927.129-38.748-21.285-0.628-33.532
Q3 201931.2481.313-20.094-0.85211.616
Q4 201929.188-68.463-18.838-0.66-58.773
Q1 202037.656-61.58-20.951-1.05-45.924
Q2 202034.277-1.664-21.784-0.9749.855
Q3 202037.8956.842-28.722-0.72815.287
Q4 202035.124-5.498-17.703-1.03410.89
Q1 202143.6584.953-28.305-1.26519.04
Q2 202142.282.945-29.252-0.9814.993
Q3 202145.7284.805-26.597-0.67723.259

Other points of note in the Quarter 3 2021 results are:

Current account (see Table 1.3)

  • Merchandise exports were €72,264m in the third quarter of 2021, an increase of €10,915m compared with the third quarter of 2020. Merchandise imports were €26,536m in the third quarter of 2021, an increase of €3,082m over the same period in 2020.
  • Service exports at €71,418m increased by €13,600m compared to the third quarter of 2020, mainly due to higher Computer services exports (which increased by €9,948m).
  • Service imports at €66,613m were up €15,638m over the same period in 2020, mainly due to higher Royalty imports.
  • Ireland’s trade balance at €50,533m, all goods and services exports less all goods and services imports, increased by €5,796m in the third quarter of 2021 over the same period in 2020.
  • Investment income earned abroad at €24,624m, increased by €1,901m compared with one year earlier while investment income payable to foreign investors at €51,429m decreased by €284m. The overall income balance for the quarter at -€27,274m increased by €2,176m compared with the same period in 2020.
Direct InvestmentPortfolio InvestmentOther InvestmentReserve AssetsBalance on Financial Account
Q2 2019-53.151-17.92217.6190.116-53.339
Q3 2019-2.461-8.32512.3180.1441.677
Q4 2019-59.46731.046-30.4960.169-58.748
Q1 2020-52.356-85.89479.8370.139-58.274
Q2 2020-58.41448.25110.867-0.0140.689
Q3 2020-6.5140.88316.0660.7611.196
Q4 20207.08516.074-11.9480.4111.621
Q1 202122.85512.427-23.2540.17312.201
Q2 20213.693-0.64117.670.07220.794
Q3 2021-11.444-2.05722.4024.08112.982

Financial account (see Tables 1.4 and 1.5)

  • Direct investment in Ireland decreased by €2,454m in the third quarter of 2021. This was due to decreased other capital of €12,751m and decreased equity investment of €1,811m which were offset by increased reinvested earnings of €12,108m. Direct investment abroad decreased by €13,898m in the quarter, mainly due to decreased reinvested earnings and other capital investment abroad while equity investment abroad increased by €4,012m.
  • Portfolio investment in foreign assets increased by €50,394m in the quarter due to increased investment in both foreign equity of €24,298m and foreign debt instruments of €26,096m. Portfolio investment in Ireland increased by €52,451m, mainly due to increased purchase of Irish equity of €43,844m. Investment in Irish debt was €8,607m.
  • Other investment assets and liabilities increased by €24,378m and €1,976m respectively in the third quarter of 2021.
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 Account activity classified by Institutional Sector

Table 1.6 Current and Capital Accounts showing geographical detail

Table 1.7 Financial Account showing geographical detail


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