Trade in goods resulted in a surplus of SEK 19 billion, which is an increase of SEK 2 billion compared with the corresponding quarter in the previous year. Exports rose more than imports, resulting in an increased surplus in trade in goods. Merchanting, which is included in trade in goods, contributed a surplus of SEK 22 billion, which was an increase of almost SEK 3 billion compared with the corresponding quarter last year.

Weakened trade in services

Trade in services showed a surplus of SEK 3 billion, down by nearly SEK 6 billion compared with the corresponding period last year.

Exports of services were SEK 158 billion, which is an increase of nearly SEK 4 billion compared with the corresponding quarter in the previous year. Imports of services amounted to slightly less than SEK 156 billion, an increase of SEK 9 billion in the same comparison.

Charges for the use of intellectual property and travel services were the primary contributors to increased exports, while the exports of other business services decreased. Travel services and charges for the use of intellectual property were also the primary contributors to increased imports of services. Travel services refer to consumption when travelling in a different country than the country of economic domicile.

Increased surplus in primary income

Primary income showed a surplus of SEK 37 billion in the third quarter. This item had a surplus of SEK 32 billion in the corresponding quarter last year. Income on portfolio investments was the primary contributor to the increased surplus in primary income. Compensation of employees resulted in a surplus of just over SEK 1 billion, while investment income resulted in a surplus of SEK 36 billion.

Income on direct investments contributed a surplus of SEK 17 billion, which is an increase of SEK 1 billion compared with the corresponding quarter last year.

Income on portfolio investments contributed a surplus of SEK 19 billion, which can be compared with a surplus of just under SEK 14 billion in the corresponding quarter of the previous year. Dividends on shares and fund holdings resulted in a surplus of SEK 23 billion. This item showed a surplus of nearly SEK19 billion in the corresponding quarter in the previous year. The surplus increase was due to increased dividends abroad on shares and fund holdings. However, return on debt securities showed a decreased deficit compared with the corresponding quarter in the previous year.

Secondary income resulted in a deficit of SEK 20 billion, which can be compared with a deficit of close to SEK 17 billion during the corresponding quarter of the previous year.

Capital inflow in the financial account

The financial account resulted in a net capital inflow of SEK 88 billion. Portfolio investments and direct investments resulted in capital inflow, while other investments, financial derivatives and reserve assets resulted in a capital outflow.

Direct investments resulted in a capital inflow of SEK 25 billion. Swedish direct investments abroad increased by SEK 30 billion, while foreign direct investment in Sweden increased by SEK 55 billion.

Portfolio investment transactions resulted in a capital inflow of SEK 152 billion. Foreign investors increased their portfolio investments in Sweden by SEK 94 billion, while Swedish investors reduced their portfolio investments abroad by SEK 58 billion.

Foreign investors increased their holdings in Swedish debt securities by SEK 93 billion. Holdings in long-term debt securities increased by SEK 100 billion while holdings in short-term debt securities decreased by SEK 7 billion. The increase is primarily attributable to the banks’ increased borrowing in long-term debt securities denominated in foreign currencies. Borrowing in SEK also increased, if not as much. The increase was attributable to several sectors. The reduction in short-term debt securities was partly due to the SEK 27 billion decrease in the banks’ borrowing. However, this is offset by non-financial corporations, which increased their borrowing by SEK 20 billion. Foreign investors made net purchases of Swedish shares and fund holdings for nearly SEK 1 billion.

Swedish investors decreased their holdings in foreign debt securities by SEK 13 billion. Long-term debt securities decreased by SEK 20 billion while short-term debt securities increased by SEK 6 billion. Holdings in foreign shares and fund holdings decreased by 45 billion in total.

Other investments resulted in a net capital outflow of SEK 71 billion. Other investments abroad decreased by SEK 87 billion, while foreign other investments in Sweden decreased by SEK 157 billion.

Financial derivatives resulted in a capital outflow of SEK 15 billion. Reserve assets resulted in a capital outflow of SEK 3 billion in the third quarter.

Net assets decreased in the international investment position

At the end of the third quarter of 2018, Sweden’s international investment position showed net external assets of SEK 511 billion. This was a reduction compared with the previous quarter, when net assets amounted to SEK 604 billion.

Assets decreased by SEK 144 billion during the quarter, while liabilities decreased by SEK 51 billion. Portfolio investments were the part of the international investment position that contributed most to the decrease in net external assets through increased net liabilities. Direct investments and reserve assets also contributed to the decrease through a reduction in net assets. Net assets in financial derivatives and other investments increased.

Sweden’s largest net external assets are in other investments, reserve assets and direct investments. Sweden’s largest net liabilities are in debt securities in portfolio investments.

Revisions

The compilation of the balance of payments and the international investment position makes use of certain preliminary information. The statistics will be revised in line with more definitive figures in the updated statistics.

In connection with publication of the third quarter 2018, the time series for balance of payments and the international investment position was revised from the first quarter of 2015.

The revision period has been extended beyond the normal period, as the annual direct investment survey showed a need to revise also 2015.

The table Revisions in balance of payments 2015Q1–2018Q2 contains the scope and description of revisions in balance of payments by account item.

The table Revisions in the international investment position 2015Q1–2018Q2 contains the scope and description of revisions in the international investment position by assets/liabilities and account item.

Corrections

Trade in foreign debt securities was corrected for the period first quarter of 2017–third quarter 2018. The correction is primarily due to the reception of supplementary data on primary trade.