Trade in goods resulted in a surplus of just over SEK 16 billion, which is a decrease of SEK 5 billion compared with the corresponding quarter in the previous year. Imports rose more than exports, resulting in a reduced surplus in trade in goods. Merchanting, which is included in trade in goods, contributed a surplus of just over SEK 21 billion, which was an increase of almost SEK 2 billion compared with the corresponding quarter last year.

Increased surplus in trade in services

Trade in services showed a surplus of SEK 23 billion, which was an increase of SEK 10 billion compared with the corresponding quarter in the previous year.

Exports of services were SEK 181 billion, which is an increase of just over SEK 10 billion compared with the corresponding quarter in the previous year. Imports of services were SEK 158 billion and remained unchanged in the same comparison.

Research and development services and data services were the primary contributors to increased exports. The increase in research and development services was affected by non-recurring items, which are considered to raise the export level temporarily.

Increased surplus in primary income

Primary income showed a surplus of nearly SEK 25 billion in the fourth quarter. This item had a surplus of SEK 20 billion in the corresponding quarter last year. Compensation of employees resulted in a surplus of nearly SEK 2 billion while investment income resulted in a surplus of almost SEK 23 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 5 billion, which can be compared with a surplus of just over SEK 2 billion in the corresponding quarter of the previous year. Dividends on shares and fund holdings resulted in a surplus of SEK 9 billion. This item showed a surplus of SEK 7 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 nearly SEK 25 billion, which can be compared with a deficit of 19 billion in the corresponding quarter of the previous year.

Capital outflow in the financial account

The financial account resulted in a net capital outflow of SEK 108 billion. Portfolio investments, direct investments and financial derivatives resulted in a capital outflow while other investments and reserve assets resulted in a capital inflow.

Direct investments resulted in a capital outflow of SEK 69 billion. Swedish direct investments abroad increased by SEK 68 billion, while foreign direct investments in Sweden decreased by SEK 1 billion.

Portfolio investment transactions resulted in a capital outflow of just over SEK136 billion. Foreign investors decreased their portfolio investments in Sweden by SEK 117 billion, while Swedish investors increased their portfolio investments abroad by SEK 19 billion.

Foreign investors reduced their holdings in Swedish debt securities by just over SEK 104 billion. Holdings in short-term debt securities decreased by SEK 127 billion while holdings in long-term debt securities increased by just over SEK 22 billion. The reduction is largely explained by banks reducing their borrowing in short-term debt securities denominated in foreign currencies by SEK 152 billion. However, this is partly offset by several other sectors, primarily non-financial corporations, which increased their borrowing in short-term debt securities denominated in SEK by a total of SEK 26 billion. Total borrowing in SEK increased by SEK 57 billion. Government bonds were the main contributor to the increase. Foreign investors made net sales of SEK 13 billion in Swedish shares and fund holdings.

Swedish investors increased their holdings in foreign debt securities by SEK 12 billion. The increase is nearly exclusively due to an increase in short-term debt securities. Holdings in foreign shares and fund holdings increased by 7 billion in total.

Other investments resulted in a net capital inflow of SEK 99 billion. Other investments abroad decreased by SEK 100 billion, while foreign other investments in Sweden decreased by nearly SEK 1 billion.

Financial derivatives resulted in a capital outflow of SEK 11 billion. Reserve assets resulted in a capital inflow of SEK 10 billion in the fourth quarter.

Net assets decreased in the international investment position

At the end of the fourth quarter of 2018, Sweden’s international investment position showed net external assets of SEK 331 billion. This was a reduction compared with the previous quarter, when net assets amounted to SEK 463 billion.

Assets decreased by SEK 1,785 billion during the quarter, while liabilities decreased by SEK 1,654 billion. Sweden’s assets and liabilities relative to other countries fell during the quarter, largely due to restructuring in the financial market. This is not reflected in financial transactions but classified in other changes.

Other investments were the part of the international investment position that contributed the most to the reduced net assets, while portfolio investments offset this through a reduced net liability. Direct investments and reserve assets resulted in reduced net assets while net assets in financial derivatives increased.

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

Differences between the balance of payments and the national accounts

There are differences in exports and imports between the balance of payment and the national accounts. This is in part due to reconciliations in the national accounts, which are described in the national accounts in-depth description. The balance of payments and the national accounts work together in a long-term approach to coordinate statistics.

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 the publication of the fourth quarter of 2018, the time series for the 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 by account items in the balance of payments 2015Q1–2018Q3 contains the scope of revisions in the balance of payments by account item.

The table Revisions by account items in the international investment position 2015Q1–2018Q3 contains the scope of revisions in the international investment position by assets/liabilities and account item.