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This chapter contains information on Ireland's transactions and positions with the rest of the world. The results shown are consistent with the new methodological standards implemented in June 2014, namely the IMF's Balance of Payments and International Investment Position Manual, sixth edition (BPM6). The Balance of International Payments data (tables 18.1, 18.2 and 18.3) show transactions between residents of Ireland and non-residents. Table 18.4 shows the end of year stocks (or levels) of Ireland's financial assets and liabilities, the International Investment Position. The data in table 18.5 shows the outstanding amount of credit granted by credit institutions resident in Ireland to Irish private sector residents, although loans granted by non-resident credit institutions to Irish residents are not included. Table 18.6 combines data from the financial and non-financial sector accounts and shows the trend in saving and investment for households.
| Table 18.1 Balance of International Payments – Current and Capital Accounts | |||||
| €million | |||||
| Item | 2019 | 2020 | |||
| Exports | Imports | Exports | Imports | ||
| Current Account | |||||
| Merchandise | 225,944 | 107,828 | 244,809 | 99,856 | |
| of which: Merchanting (net export) | 13,960 | - | 14,873 | - | |
| Services | 230,152 | 335,716 | 244,069 | 305,968 | |
| Repairs and Processing | 2,049 | 6,261 | 2,707 | 7,377 | |
| Transport | 8,041 | 4,236 | 2,535 | 3,914 | |
| Tourism and travel | 5,786 | 7,374 | 1,645 | 2,072 | |
| Insurance | 10,271 | 8,361 | 11,284 | 9,282 | |
| Financial services | 17,620 | 15,686 | 19,129 | 16,943 | |
| Royalties/Licences | 10,482 | 85,851 | 13,085 | 84,421 | |
| Communications | 484 | 568 | 259 | 442 | |
| Computer services | 118,459 | 6,161 | 134,182 | 6,306 | |
| Business services | 48,106 | 199,717 | 48,214 | 173,741 | |
| Research and development | 5,487 | 137,006 | 9,198 | 104,183 | |
| Operational leasing | 19,425 | 1,185 | 18,122 | 1,183 | |
| Misc. business services | 23,194 | 61,525 | 20,897 | 68,376 | |
| Other services n.e.s. | 8,854 | 1,500 | 11,033 | 1,472 | |
| Primary Income | 110,428 | 190,265 | 96,204 | 185,365 | |
| Compensation of Employees | 524 | 676 | 245 | 538 | |
| Investment Income | 108,314 | 189,116 | 94,447 | 184,388 | |
| Direct investment income | 22,562 | 91,727 | 20,945 | 98,970 | |
| Income on equity | 17,540 | 80,815 | 18,104 | 87,854 | |
| Dividends & distributed branch profits | 4,217 | 20,739 | 1,723 | 24,304 | |
| Reinvested earnings | 13,323 | 60,074 | 16,383 | 63,551 | |
| Income on debt | 5,022 | 10,915 | 2,841 | 11,117 | |
| Portfolio investment income | 64,862 | 81,164 | 57,853 | 71,839 | |
| Income on equity | 20,904 | 63,596 | 17,447 | 55,018 | |
| Income on debt | 43,958 | 17,568 | 40,406 | 16,821 | |
| Other investment income | 20,890 | 16,224 | 15,647 | 13,579 | |
| Other primary income | 1,588 | 474 | 1,512 | 438 | |
| Secondary Income | 5,182 | 8,668 | 5,867 | 9,651 | |
| Current Account - Total | 571,707 | 642,477 | 590,947 | 600,839 | |
| Current Account Balance | -70,772 | -9,892 | |||
| Capital Account Balance | -35,310 | -15,526 | |||
| Memorandum Item: Government income | 101 | 3,362 | 61 | 2,304 | |
| Source: CSO | |||||
Table 18.1 shows the Current and Capital accounts from the Balance of Payments release. The current account is subdivided into three main sections; Merchandise, Services and Income.
In 2020 the current account, a measure of Ireland’s economic flows with the rest of the world, had a deficit of €9.9bn. The merchandise surplus of €145bn was offset by profit and interest outflows of €89.2bn and a services deficit of €61.9bn.
The largest categories of services exports were computer services (€134.2bn) and business services (€48.2bn), while the largest categories of service imports were business services (€173.7bn) due to high R&D related IP imports (€104.2bn) and royalties (€84.4bn).
Interactive table: PXStat BPA15
Link to publication: International Accounts
Table 18.2 shows the exports of merchandise and services by partner country in 2020.
In 2020 total exports of merchandise and services amounted to €488.9bn. The top three countries accounted for 39.8% of exports. The largest trading partner for exports was United States (€98.3bn) followed by exports to United Kingdom of €55.3bn and exports to Germany of €40.9bn.
Interactive table: PXStat BPA19
Link to publication: International Accounts
Table 18.3 shows the imports of merchandise and services by partner country in 2020.
In 2020 total imports of merchandise and services amounted to €405.8bn. The top two countries accounted for 40.9% of imports. The largest trading partner for imports was United States (€121.8bn); followed by imports from United Kingdom of €44bn.
| The value for merchandise and services imports from the US was amended on 17 Dec 2021. |
|---|
Interactive table: PXStat BPA19
Link to publication: International Accounts
| 18.4 International Investment Position - detailed data | |||||||
| €million | |||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Foreign assets | |||||||
| Direct Investment Abroad | 509,706 | 835,530 | 812,639 | 822,832 | 838,928 | 1,001,686 | 987,531 |
| Equity capital and reinvested earnings | 437,273 | 749,944 | 745,116 | 750,436 | 749,545 | 1,007,550 | 1,039,429 |
| Other capital | 72,432 | 85,586 | 67,523 | 72,396 | 89,384 | -5,864 | -51,897 |
| Portfolio Investment | 2,011,569 | 2,246,763 | 2,442,775 | 2,688,561 | 2,746,608 | 3,402,109 | 3,637,469 |
| Equity | 772,568 | 879,460 | 952,792 | 1,109,071 | 1,094,649 | 1,389,059 | 1,531,880 |
| Debt instruments | 1,239,000 | 1,367,303 | 1,489,983 | 1,579,490 | 1,651,959 | 2,013,049 | 2,105,589 |
| Bonds and notes | 840,176 | 934,516 | 1,049,890 | 1,129,869 | 1,247,307 | 1,557,331 | 1,621,287 |
| Money market instruments | 398,824 | 432,787 | 440,092 | 449,620 | 404,652 | 455,719 | 484,302 |
| Other Investment | 1,183,108 | 1,283,707 | 1,234,539 | 1,218,254 | 1,271,198 | 1,481,348 | 1,680,597 |
| Loans, currency and deposits | 757,735 | 862,959 | 844,200 | 890,703 | 955,141 | 1,101,619 | 1,216,469 |
| Trade Credits | 46,422 | 49,921 | 51,647 | 49,080 | 50,755 | 77,924 | 81,509 |
| Other assets | 378,951 | 370,827 | 338,692 | 278,472 | 265,300 | 301,807 | 382,620 |
| Reserve assets | 1,426 | 2,013 | 3,384 | 3,672 | 4,550 | 5,087 | 6,207 |
| Monetary gold | 180 | 178 | 201 | 198 | 205 | 248 | 282 |
| Special drawing rights | 776 | 829 | 817 | 776 | 797 | 828 | 815 |
| Reserve Position in the IMF | 308 | 329 | 1,029 | 959 | 981 | 995 | 951 |
| Foreign Exchange | 3 | 3 | 379 | 597 | 883 | 906 | 981 |
| Other | 159 | 674 | 958 | 1,142 | 1,684 | 2,110 | 3,178 |
| Total Foreign Assets | 3,705,808 | 4,368,013 | 4,493,337 | 4,733,319 | 4,861,284 | 5,890,230 | 6,311,804 |
| Foreign liabilities | |||||||
| Direct Investment in Ireland | 354,045 | 817,580 | 797,521 | 882,171 | 916,516 | 1,079,570 | 1,097,554 |
| Equity capital and reinvested earnings | 379,597 | 598,350 | 706,277 | 791,120 | 819,830 | 922,276 | 997,095 |
| Other capital | -25,552 | 219,230 | 91,244 | 91,051 | 96,686 | 157,294 | 100,459 |
| Portfolio Investment | 2,364,508 | 2,798,428 | 2,909,500 | 3,142,512 | 3,172,291 | 3,974,976 | 4,263,989 |
| Equity | 1,937,051 | 2,313,180 | 2,450,073 | 2,705,168 | 2,727,364 | 3,415,592 | 3,642,558 |
| Debt instruments | 427,457 | 485,248 | 459,428 | 437,344 | 444,927 | 559,384 | 621,431 |
| Bonds and notes | 413,568 | 466,421 | 445,071 | 419,860 | 433,919 | 544,797 | 600,860 |
| Money market instruments | 13,889 | 18,827 | 14,357 | 17,484 | 11,008 | 14,587 | 20,571 |
| Other Investment | 1,307,346 | 1,272,675 | 1,251,886 | 1,204,710 | 1,370,785 | 1,514,110 | 1,587,194 |
| Loans, currency and deposits | 713,243 | 692,977 | 713,055 | 719,827 | 828,936 | 910,038 | 924,882 |
| Trade Credits | 19,849 | 30,497 | 41,013 | 46,783 | 43,514 | 44,503 | 53,669 |
| Other liabilities | 574,254 | 549,201 | 497,819 | 438,099 | 498,335 | 559,569 | 608,643 |
| Total Foreign Liabilities | 4,025,899 | 4,888,683 | 4,958,908 | 5,229,393 | 5,459,591 | 6,568,655 | 6,948,736 |
| Source: CSO | |||||||
Table 18.4 shows the International Investment Position.
At the end of 2020 Ireland’s stock of financial assets amounted to €6,311.8bn. The corresponding stock of financial liabilities was €6,948.7bn. This resulted in a net foreign liability of €636.9bn.
Interactive table: PXStat BPQ26
Link to publication: International Accounts
| 18.5 Irish Private Sector Credit and Deposits, end of year 2013-2020 | ||||||||
| €m | ||||||||
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Credit advanced to Irish private sector | 278,266 | 226,881 | 199,877 | 185,771 | 179,144 | 173,866 | 166,016 | 155,109 |
| 1. Households | 107,660 | 96,873 | 91,963 | 88,169 | 89,909 | 91,399 | 92,037 | 86,954 |
| 1.1 Loans for house purchase | 83,322 | 78,292 | 77,029 | 73,469 | 74,799 | 76,126 | 76,493 | 73,770 |
| 1.2 Consumer credit | 12,933 | 11,524 | 11,234 | 12,093 | 12,896 | 13,321 | 13,856 | 11,667 |
| 1.3 Other loans | 11,405 | 7,057 | 3,700 | 2,607 | 2,214 | 1,952 | 1,693 | 1,518 |
| 2. Non-financial corporations | 79,648 | 60,328 | 47,099 | 42,587 | 41,526 | 41,709 | 39,104 | 36,497 |
| 2.1 Loans | 79,526 | 60,071 | 46,819 | 42,346 | 41,255 | 40,885 | 38,570 | 36,320 |
| 2.2 Securities | 122 | 257 | 280 | 241 | 271 | 824 | 533 | 177 |
| 3. Insurance corporations and pension funds/other financial intermediaries | 90,958 | 69,514 | 60,815 | 55,015 | 47,709 | 40,758 | 34,875 | 31,658 |
| 3.1 Loans | 30,738 | 21,179 | 18,506 | 17,002 | 17,242 | 17,764 | 15,843 | 13,769 |
| 3.2 Securities | 60,220 | 48,335 | 42,309 | 38,013 | 30,466 | 22,994 | 19,032 | 17,889 |
| Deposits of Irish private sector | 180,358 | 165,821 | 176,070 | 180,116 | 187,205 | 193,809 | 218,699 | 254,866 |
| 4. Households | 91,182 | 91,460 | 94,741 | 97,128 | 99,495 | 104,047 | 110,465 | 124,529 |
| 5. Non-financial corporations | 33,933 | 39,744 | 42,652 | 45,579 | 50,533 | 52,362 | 61,655 | 72,699 |
| 6. Insurance corporations and pension funds/Other financial intermediaries | 55,243 | 34,616 | 38,678 | 37,408 | 37,178 | 37,400 | 46,579 | 57,638 |
| Source: Central Bank of Ireland | ||||||||
Table 18.5 shows the outstanding amount of credit extended by credit institutions resident in Ireland to Irish private sector residents. It is important to note that the loans granted by non-resident credit institutions to Irish residents are not included in these tables. Hence, if a bank changes its jurisdiction this will affect the amounts shown in this table.
After a continuing decline from 2012 to 2016, and slight increases from 2017 to 2019, the amount owed by households to Irish banks decreased in 2020, standing at €87.0bn at year end. There is a persisting trend in recent years where households’ credit liabilities have fallen in cumulative terms by €24.1bn since 2012. Loans for house purchase decreased by 3.6% in 2020 over the previous year, while deposits held by households rose by 12.7% from 2019 to 2020.
| GFCF | Net Capital Transfers | Deposits | Loans | Insurance, Pensions and Shares | Gross Savings | |
| 2009 | 8.8075101135218 | -0.282766655708133 | 5.2614202250906 | 2.01366476523815 | 0.826823896597376 | 14.8993060253312 |
| 2010 | 5.80870508083562 | -0.219912940433904 | 0.548180396929281 | 9.8183523861205 | -1.24519592004236 | 13.3612207019781 |
| 2011 | 4.56704100708432 | -0.133483018475304 | -1.72683745760774 | 8.85124592294578 | 1.35423443756402 | 7.79100077631827 |
| 2012 | 4.11908376364855 | -0.0676524847227679 | 0.989173525613431 | 7.31716889792146 | -0.594098748176568 | 10.2778693645634 |
| 2013 | 4.17583648493732 | -0.138914667073124 | 0.203158550900019 | 4.562347692615 | 1.14714457628105 | 8.49007433656123 |
| 2014 | 4.1729575174887 | -0.0832828380690253 | 2.59830788313175 | 5.57979736945661 | 0.10317420901148 | 7.65370185040143 |
| 2015 | 4.66319990744766 | -0.111959981305591 | 3.94392343711328 | 4.51969193038585 | 0.631076025105539 | 8.2925673181102 |
| 2016 | 5.50544428966578 | -0.267495602075 | 3.21561627922974 | 2.72282680172762 | 1.01426034913194 | 7.80960936036448 |
| 2017 | 6.36987786899173 | -0.326603278 | 4.06315482263201 | 0.941930334344126 | 3.07771674729291 | 12.2437149304565 |
| 2018 | 7.33891150157362 | -0.593927480892825 | 5.052350949968 | 1.13435900908064 | 1.06461982304372 | 12.8937328142937 |
| 2019 | 7.24880117309944 | -0.444364891113999 | 7.265001850226 | 0.309063220007619 | 4.78182095335877 | 14.4557315450967 |
Interactive link: PXStat ISA04
Household1 saving peaked at €14.9bn in 2009 and amounted to €14.5bn in 2019. How households have been using their savings is illustrated in Figure 18.5. The line graph is the trend in actual gross household saving while the bar chart illustrates transactions in investment and borrowing by households.
During the entire period there is a clear link between transactions in loans and transactions in gross fixed capital formation (GFCF) of households. The transactions in loans relate predominantly to borrowing to fund investment in property while the capital formation relates to the property investments themselves.
Since 2009 households have not been borrowing, in net terms. At the same time investment in property has fallen to levels that can be financed by the saving of the sector without having recourse to borrowing. In fact the gross capital formation of households fell from a high of €25.8bn in 2006 to €4.1bn in 2012, ultimately rising to €7.3bn in 2018, and declining slightly to €7.2bn in 2019 (for full time series see the related PxStat ISA04 table). Repayment of loans amounting to €0.3bn, also known as deleveraging, continued to be a use of household saving in 2019. The use of household saving to fund transactions in investment assets such as deposits and insurance and pensions is also apparent in the graph.
1Data refers to Households and non-profit institutions serving households (S.14 + S.15 ESA2010 sector categories).
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