Sweden’s trade surplus has reached 68.8 billion SEK, marking an increase of 11.9 billion SEK compared to the second quarter of 2022. The most significant change is observed in the trade balance, which has risen by 15.5 billion SEK compared to the same quarter in 2022.
Elisabet Göransson, an economist at the Payment Balance section, attributes this positive development to a robust merchanting sector during the second quarter, contributing to a favorable trade balance and ultimately bolstering the overall surplus in the payment balance.
As of the end of the quarter, Sweden’s total net assets vis-à-vis foreign countries, as reflected in the international investment position, amounted to 2,714.4 billion SEK. The financial balance indicates a net lending of 50.6 billion SEK to foreign countries during the second quarter of 2023.
What is the payment balance? The payment balance accounts for all of Sweden’s transactions with the rest of the world. It tracks the export and import of goods and services and measures changes in financial assets and liabilities vis-à-vis foreign countries. The payment balance comprises the trade balance, financial balance, and capital balance.
Trade Balance Surplus as a Percentage of Sweden’s GDP Sweden’s trade balance, as a percentage of the country’s GDP, stands at 5.0 percent, compared to 4.9 percent in the previous quarter. This percentage is calculated as the average over the last four quarters.
Trade Balance Highlights
- The trade balance records a surplus of 57.4 billion SEK in the second quarter of 2023, marking a 15.5 billion SEK increase compared to the same period in 2022.
- Goods exports total 570.5 billion SEK, increasing by 22.3 billion SEK compared to the corresponding quarter in the previous year.
- Goods imports amount to 513.2 billion SEK, representing a 6.9 billion SEK increase compared to the same period for the previous year.
- The surplus in merchanting, which contributes to the trade balance, rises by 16.3 billion SEK compared to the second quarter of 2022, reaching 57.5 billion SEK.
Services Balance
- The services balance records a deficit of 18.3 billion SEK, compared to a deficit of 14.9 billion SEK in the second quarter of 2022.
- Service imports amount to 280.6 billion SEK, an increase of 32.4 billion SEK compared to the second quarter of 2022.
- Meanwhile, service exports show an increase of 29.0 billion SEK compared to the same period, totaling 262.3 billion SEK.
Primary Income and Financial Balance
- Primary income, primarily comprising wages and capital returns, reports a surplus of 51.2 billion SEK in the second quarter of 2023.
- The surplus in capital returns decreases by 1.4 billion SEK compared to the same quarter in the previous year, totaling 50.6 billion SEK in the current quarter.
Secondary Income
- Secondary income, which includes international cooperation and EU fees/grants, records a deficit of 21.5 billion SEK. This is a decrease of 1.3 billion SEK compared to the same quarter in the previous year.
Net Lending in the Financial Balance The financial balance reports a net lending of 50.6 billion SEK in the second quarter of 2023. Net lending and net borrowing represent the positive and negative net positions in the financial balance, respectively.
Direct Investment
- Net lending within direct investment amounts to 29.2 billion SEK during the quarter.
- Foreign direct investment in Sweden increases by 83.8 billion SEK, while Swedish direct investment abroad increases by 113.0 billion SEK.
Portfolio Investment
- Net lending within portfolio investment is 2.4 billion SEK during the quarter.
- Foreign investors increase their portfolio investments in Sweden by 96.3 billion SEK, and Swedish investors increase their portfolio investments abroad by 98.7 billion SEK.
Other Investment
- Net lending within other investment amounts to 42.1 billion SEK.
- Swedish other investments abroad increase by 344.0 billion SEK, while foreign other investments in Sweden increase by 301.9 billion SEK.
Financial Derivatives and Foreign Exchange Reserves
- Net lending within financial derivatives is 17.3 billion SEK.
- Foreign exchange reserves show a decreased net lending of 40.4 billion SEK.
Increase in Swedish Net Assets Abroad The international investment position reflects an increase in Sweden’s net assets vis-à-vis foreign countries, reaching 2,714.4 billion SEK in the second quarter of 2023. This marks an increase compared to the previous quarter when net assets amounted to 2,046.4 billion SEK.
Swedish Assets and Liabilities Abroad Increase
- Swedish assets abroad amount to 20,851.0 billion SEK during the second quarter, representing an increase of 1,421.5 billion SEK compared to the previous quarter.
- Swedish liabilities to foreign countries increase by 753.5 billion SEK compared to the previous quarter, totaling 18,136.6 billion SEK.