23.03.2015, 11:37
Swiss balance of payments and international investment position: Q4 2014 and review of the year 2014
OREANDA-NEWS. Swiss balance of payments and international investment
position: Q4 2014 and review of the year 2014.
Introduction of new surveys on cross-border capital linkages
Switzerland’s balance of payments and international investment position for the fourth quarter of 2014 contain, for the first time, the complete results of the revised quarterly surveys on cross-border capital linkages.1 The SNB conducts this survey at 560 companies (groups) in Switzerland. The survey enables, in particular, improved recording of direct investment loans. In addition, it now also covers intragroup lending by insurance companies, thereby closing a statistical gap. Both changes primarily impact stocks in the international investment position, whereas the current account and the financial account are affected only marginally. Thus, in the fourth quarter of 2014, around three-quarters of the CHF 170 billion increase in assets and the CHF 149 billion increase in liabilities can be ascribed to this statistical effect.
Summary of balance of payments and international investment position
Q4 2014
In the fourth quarter of 2014, the current account surplus amounted to CHF 17 billion, CHF 3 billion more than in the year-back quarter. The receipts surplus on goods increased by CHF 5 billion to CHF 17 billion. In trade in services and primary income (labour and investment income), the receipts surplus amounted to CHF 4 billion and CHF 2 billion, respectively, as in Q4 2013. The surplus of expenses on secondary income (current transfers) increased by CHF 1 billion against the year-back quarter, amounting to CHF 6 billion.
In the financial account, net acquisition of financial assets amounted to CHF 3 billion (Q4 2013: CHF 16 billion). On the liabilities side, a net reduction of CHF 4 billion was recorded, as against a net incurrence of CHF 2 billion in the fourth quarter of 2013.
In Switzerland’s international investment position, stocks of assets amounted to CHF 4,243 billion (up by CHF 170 billion compared to Q3 2014) and stocks of liabilities to CHF 3,427 billion (up by CHF 149 billion). The net international investment position came to CHF 816 billion (a rise of CHF 22 billion). Besides the impact of the statistical change, it was primarily the growth in the overall level of currency reserves by CHF 33 billion to CHF 541 billion that contributed to the increase in the net international investment position.
Review of the year 2014
In 2014, the current account surplus amounted to CHF 45 billion, CHF 23 billion less than in the previous year. The decrease was predominantly due to a lower surplus in investment income, which receded by CHF 17 billion to CHF 18 billion. The surplus of receipts from trade in goods and services advanced by CHF 1 billion to CHF 71 billion. Secondary income (current transfers) recorded an increase in net expenditure by CHF 6 billion to CHF 24 billion.
In the financial account, net acquisition of financial assets amounted to CHF 29 billion, as against CHF 115 billion in 2013. On the liabilities side, a net reduction of CHF 18 billion was recorded, compared to a net incurrence of CHF 16 billion in the previous year.
Stocks of assets in the international investment position rose by CHF 348 billion to CHF 4,243 billion, while stocks of foreign liabilities expanded by CHF 280 billion to CHF 3,427 billion. As a consequence, the net international investment position increased by CHF 68 billion to CHF 816 billion.
Introduction of new surveys on cross-border capital linkages
Switzerland’s balance of payments and international investment position for the fourth quarter of 2014 contain, for the first time, the complete results of the revised quarterly surveys on cross-border capital linkages.1 The SNB conducts this survey at 560 companies (groups) in Switzerland. The survey enables, in particular, improved recording of direct investment loans. In addition, it now also covers intragroup lending by insurance companies, thereby closing a statistical gap. Both changes primarily impact stocks in the international investment position, whereas the current account and the financial account are affected only marginally. Thus, in the fourth quarter of 2014, around three-quarters of the CHF 170 billion increase in assets and the CHF 149 billion increase in liabilities can be ascribed to this statistical effect.
Summary of balance of payments and international investment position
Q4 2014
In the fourth quarter of 2014, the current account surplus amounted to CHF 17 billion, CHF 3 billion more than in the year-back quarter. The receipts surplus on goods increased by CHF 5 billion to CHF 17 billion. In trade in services and primary income (labour and investment income), the receipts surplus amounted to CHF 4 billion and CHF 2 billion, respectively, as in Q4 2013. The surplus of expenses on secondary income (current transfers) increased by CHF 1 billion against the year-back quarter, amounting to CHF 6 billion.
In the financial account, net acquisition of financial assets amounted to CHF 3 billion (Q4 2013: CHF 16 billion). On the liabilities side, a net reduction of CHF 4 billion was recorded, as against a net incurrence of CHF 2 billion in the fourth quarter of 2013.
In Switzerland’s international investment position, stocks of assets amounted to CHF 4,243 billion (up by CHF 170 billion compared to Q3 2014) and stocks of liabilities to CHF 3,427 billion (up by CHF 149 billion). The net international investment position came to CHF 816 billion (a rise of CHF 22 billion). Besides the impact of the statistical change, it was primarily the growth in the overall level of currency reserves by CHF 33 billion to CHF 541 billion that contributed to the increase in the net international investment position.
Review of the year 2014
In 2014, the current account surplus amounted to CHF 45 billion, CHF 23 billion less than in the previous year. The decrease was predominantly due to a lower surplus in investment income, which receded by CHF 17 billion to CHF 18 billion. The surplus of receipts from trade in goods and services advanced by CHF 1 billion to CHF 71 billion. Secondary income (current transfers) recorded an increase in net expenditure by CHF 6 billion to CHF 24 billion.
In the financial account, net acquisition of financial assets amounted to CHF 29 billion, as against CHF 115 billion in 2013. On the liabilities side, a net reduction of CHF 18 billion was recorded, compared to a net incurrence of CHF 16 billion in the previous year.
Stocks of assets in the international investment position rose by CHF 348 billion to CHF 4,243 billion, while stocks of foreign liabilities expanded by CHF 280 billion to CHF 3,427 billion. As a consequence, the net international investment position increased by CHF 68 billion to CHF 816 billion.
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