The current account exhibited a seasonal pattern and is lower, as a rule, in the second quarter, as primary incomes are affected by dividends paid by many Swedish companies.

Trade in goods resulted in a surplus of SEK 20 billion, which is a decrease of SEK 14 billion compared with the corresponding quarter last year. Imports rose more than exports, which led to a lower surplus in trade in goods.

Weakened trade in services

Trade in services showed a surplus of SEK 11 billion, down by SEK 8 billion compared with the corresponding quarter last year.

Exports of services amounted to SEK 157 billion, which is a decrease of SEK 7 billion compared with the corresponding quarter in the previous year, while imports of services amounted to SEK 146 billion, an increase of SEK 1 billion compared with the corresponding quarter in the previous year.

The decreased exports of services is mainly attributable to decreases in professional and management consulting services, and technical, trade-related and other business services. Travel was the main contributor to the increased imports of services.

Deficit in primary income

Primary income showed a deficit of SEK 12 billion in the second quarter. This item had a deficit of SEK 6 billion in the corresponding quarter last year. Compensation of employees resulted in a surplus of SEK 3 billion, while investment income resulted in a deficit of SEK 15 billion.

Income on direct investments contributed a surplus of SEK 15 billion, which was on par with the corresponding quarter last year.

Income on portfolio investments resulted in a deficit of SEK 30 billion, which can be compared with a deficit of SEK 24 billion during the corresponding quarter of the previous year. Dividends on shares and fund holdings resulted in a deficit of SEK 26 billion. This item showed a deficit of SEK 18 billion in the corresponding quarter in the previous year. The deficit increase was due to higher dividends abroad than in Sweden on shares and fund holdings. However, return on debt securities showed a decreased deficit compared with the corresponding quarter in the previous year. Investment income exhibited a seasonal pattern and net return is lower, as a rule, in the second quarter, due to dividends paid by many Swedish companies.

Secondary income resulted in a deficit of SEK 10 billion, which can be compared with a deficit of SEK 11 billion in the corresponding quarter of the previous year.

Capital inflow in the financial account

The financial account resulted in a net capital inflow of SEK 9 billion. Direct investments and portfolio investments resulted in capital inflow, while other investments, financial derivatives and reserve assets resulted in a capital outflow in the second quarter.

Direct investments resulted in a capital inflow of SEK 18 billion. Swedish direct investment abroad decreased by SEK 8 billion, while foreign direct investment in Sweden increased by SEK 10 billion.

Portfolio investment transactions resulted in a capital inflow of SEK 46 billion. Foreign investors increased their portfolio investments in Sweden by SEK 4 billion, while Swedish investors decreased their portfolio investments abroad by SEK 42 billion.

Swedish investors decreased their holdings in foreign debt securities by SEK 18 billion, of which holdings in short-term debt securities accounted for the largest decrease, corresponding to SEK 39 billion. Holdings in foreign shares decreased by SEK 38 billion in the quarter, to which net sales of US shares contributed most. At the same time, investments in foreign funds increased by SEK 14 billion.

Foreign investors’ holdings in Swedish debt securities decreased by SEK 1 billion. Foreign holdings in long-term debt securities increased by SEK 12 billion, while holdings in short-term debt securities decreased by SEK 13 billion. Foreign investors made net purchases of Swedish shares and funds for SEK 5 billion.

Other investments resulted in a net capital outflow of SEK 37 billion. Swedish other investments abroad increased by SEK 138 billion, while foreign other investments in Sweden increased by SEK 101 billion.

Reserve assets resulted in a capital outflow of SEK 4 billion in the second quarter. Financial derivatives resulted in a capital outflow of SEK 14 billion.

Net assets increased in the international investment position

At the end of the second quarter of 2018, Sweden’s international investment position showed net external assets of SEK 861 billion. This was an increase compared with the previous quarter, when net assets amounted to SEK 573 billion.

Assets increased by SEK 661 billion during the quarter, while liabilities increased by SEK 373 billion compared with the previous quarter. Portfolio investments were the part of the international investment position to contribute most to the increase in net external assets through a decreased net liability. Direct investments, other investments and reserve assets also contributed to the increase through increased net assets. Net assets in financial derivatives decreased.

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

Balance of payments for the second quarter 2018 will be published 2018-12-04 at 09:30.