Dividends paid abroad on portfolio investment in early part of 2011 almost EUR 300 m more than last year

Current account

Finnish companies paid a total of EUR 2.8 bn abroad in dividends on portfolio investment in January–May. This is almost EUR 300 m more than in the year-earlier period. Finnish companies usually distribute dividends in March–May. On average, 98% of total annual dividends are paid in this period. The stock of Finnish equities owned by foreign investors decreased between end-December 2010 and end-May 2011 by almost EUR 7.5 bn. A large part of the change is due to a decline in the market value of equities.

The current account posted a deficit of EUR 0.9 bn in May, compared to a deficit of about EUR 0.6 bn in May 2010. 

• In May, the BOP goods account was in balance. A year earlier, it was EUR 0.4 bn in surplus. Compared with last year’s May figure, the value of exports increased by 16% and the value of imports by 27%. The value of imports was inflated inter alia by a rise in oil prices. In the period January–May of this year, a surplus of EUR 0.06 bn accumulated on the BOP goods account. In the same period a year ear-lier, there was a surplus of EUR 0.6 bn.

Financial account

Net capital inflows totalled EUR 4.0 bn.

• Net direct investment inflows totalled EUR 0.9 bn.
• Net portfolio investment inflows amounted to EUR 1.2 bn.
• Other investments (loans, deposits and trade credits) amounted to a net inflow of EUR 1.9 bn.

Net international investment position at end-May

Foreign assets exceeded foreign liabilities by EUR 20 bn.

• Finnish residents’ foreign assets amounted to EUR 575 bn. 
• Finnish residents’ foreign liabilities amounted to EUR 555 bn.

Net international investment position excluding equity items recorded net liabilities of EUR 53 bn.