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Balance of International Payments

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Current account balance of €1.5bn in Quarter 4 2021

Table 1.1 Balance of International Payments€ million
 Merchandise BalanceServices and Income BalanceCurrent Account BalanceCurrent Account Balance as % of GDP
Q4 202035,124-24,23510,89011.6
Q4 202141,277-39,7711,5061.4
 
Q1-Q4 2020144,952-154,846-9,892-2.7
Q1-Q4 2021172,943-114,14458,79813.9

The Balance of Payments current account, a measure of Ireland’s economic flows with the rest of the world, showed a surplus of €1.5bn in the fourth quarter of 2021. Increased R&D and Royalty imports have contributed to the reduced current account surplus.

Current Account
Q3 201912.465483158424
Q4 2019-63.5161880916754
Q1 2020-49.2835487394886
Q2 202011.6541962287259
Q3 202015.1416633507514
Q4 202011.5649766415266
Q1 202118.9417611114286
Q2 202114.8989309568967
Q3 202120.3511305440226
Q4 20211.41953658723128
MerchandiseServicesPrimary IncomeSecondary IncomeBalance on Current Account
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
Q4 202141.277-15.831-22.513-1.4271.506

Other points of note in the Quarter 4 2021 results are:

Current account (see Table 1.3)

  • Merchandise exports were €72,681m in the fourth quarter of 2021, an increase of €8,782m compared with the fourth quarter of 2020. Merchandise imports were €31,404m in the fourth quarter of 2021, an increase of €2,630m over the same period in 2020.
  • Service exports at €83,125m increased by €7,986m compared to the fourth quarter of 2020, mainly due to higher Computer services exports (which increased by €8,942m).
  • Service imports at €98,956m were up €18,320m over the same period in 2020, mainly due to higher Royalty imports and higher Business services imports.
  • Ireland’s trade balance at €25,446m, all goods and services exports less all goods and services imports, decreased by €4,181m in the fourth quarter of 2021 over the same period in 2020.
  • Investment income earned abroad at €30,377m, increased by €6,241m compared with one year earlier while investment income payable to foreign investors at €53,046m increased by €11,029m. The overall income balance for the quarter at -€23,939m decreased by €5,202m compared with the same period in 2020.
Direct InvestmentPortfolio InvestmentOther InvestmentReserve AssetsBalance on Financial Account
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
Q4 202124.023-0.022-15.6780.6548.977

Financial account (see Tables 1.4 and 1.5)

  • Direct investment in Ireland increased by €16,954m in the fourth quarter of 2021. This was due to increased other capital of €12,192m and increased reinvested earnings of €11,756m which were offset by decreased equity investment of €6,993m. Direct investment abroad increased by €40,977m in the quarter, mainly due to equity investment abroad which increased by €28,797m.
  • Portfolio investment in foreign assets increased by €144,629m in the quarter due to increased investment in both foreign equity of €63,623m and foreign debt instruments of €81,006m. Portfolio investment in Ireland increased by €144,651m, mainly due to increased purchase of Irish equity of €113,237m. Investment in Irish debt was €31,414m.
  • Other investment assets and liabilities decreased by €24,279m and €8,601m respectively in the fourth 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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