Balance of payments, international investment position and external debt of the Russian Federation in the 3d quarter of 2024
The Bank of Russia published the balance of payments, international investment position and the external debt of the Russian Federation in Q3 2024 and revised indicators of Q1 – Q2 2024 due to accounting of additional reporting data as of December 28, 2024.
Balance of payments of the Russian Federation
Balance of payments of the Russian Federation, in billions of US dollars
|
Key Aggregates |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|
Current account |
15.6 | 7.7 | 15.5 | 11.3 | 24.0 | 17.3 | 7.8 |
|
Trade balance |
30.5 | 26.3 | 33.4 | 31.4 | 34.7 | 35.6 | 31.9 |
|
Balance on services |
-7.6 | -8.9 | -10.3 | -8.4 | -7.2 | -9.3 | -12.6 |
|
Balance on primary and secondary income |
-7.3 | -9.6 | -7.6 | -11.7 | -3.5 | -9.0 | -11.5 |
|
Balance on financial account |
13.0 | 4.7 | 12.1 | 11.7 | 22.3 | 10.3 | 6.4 |
|
Net acquisition of financial assets, excluding reserve assets |
6.4 | 10.9 | 22.5 | 4.2 | 24.9 | 14.1 | 11.8 |
|
Net incurrence of liabilities |
-11.7 | 4.7 | 8.2 | -8.7 | -4.3 | 2.5 | 2.1 |
|
Reserve assets |
-5.1 | -1.4 | -2.3 | -1.2 | -6.9 | -1.3 | -3.2 |
The current account surplus in Q3 2024 decreased by $9.5 billion compared to the preceding quarter due to not only a decrease in the positive trade balance, but also to a growth in the deficit in the balance of external trade in services and in the balance of investment income.
Main components of the current account, in billions of US dollars
Compared to the Q2 2024 exports of goods in value terms increased by 3.0%, imports of goods – by 9,9%, which is largely due to the improvement of international price conditions.
Trade balance of the Russian Federation, in billions of US dollars
The deficit in the balance of external trade in services has increased significantly compared to the previous quarter and to the corresponding period of 2023. A key role was played by the growth of imports of travel services against the backdrop of activation of outbound tourism.
Balance on services, in billions of US dollars
The total deficit in balance on primary and secondary income increased by $2.5 billion compared to Q2 2024 as a result of an increase of the amount of dividends accrued in favor of non-residents.
The balance on financial account amounted to $6.4 billion.
Net lending by sectors, in billions of US dollars
Net lending to the rest of the world, recorded in the financial account of the balance of payments (excluding reserve assets), was mainly formed by an increase in financial assets by $11.8 billion, mainly in the form of claims on non-residents in other investment. This was due, among other things, to an increase in lags in settlements for foreign economic activities. The changes regarding the preliminary estimate were made taking into account the upward revision, including data on other investment.
Net acquisition of financial assets by residents by functional categories, in billions of US dollars
External liabilities increased by $2.1 billion. The increase in other investment was partially offset by the reduction in liabilities on raised loans within the framework of direct investment relationship, as well as on portfolio investment. Data for Q3 2024 has been revised upward by $7.1 billion mainly due to a more detailed analysis of information on refunds of cross-border payments under foreign trade agreements, which have increased significantly due to the increased sanction pressure on the infrastructure of international settlements. The same factor influenced the revision of data on changes in liabilities for Q1 – Q2 2024.
Net incurrence of liabilities by residents by functional categories, in billions of US dollars
Taking into account the revisions of all components of the balance of payments for the 9 months of 2024, net errors and omissions amounted to $9.8 billion in absolute terms ($8.8 billion a year earlier).
International investment position of the Russian Federation
The growth in net international investment position of the Russian Federation in Q3 2024 (from $873 billion at the end of the preceding quarter to $943 billion as of September 30, 2024) was driven by an increase in external assets and a decrease in external liabilities.
Foreign assets and liabilities of the Russian Federation, in billions of US dollars
|
|
Assets | Liabilities | ||
|---|---|---|---|---|
|
Position as of June 30, 2024 |
Position as of September 30, 2024 |
Position as of June 30, 2024 |
Position as of September 30, 2024 |
|
|
Total |
1 559.7 |
1 582.5 |
687.1 |
639.1 |
|
Direct investment |
295.8 |
282.5 |
315.6 |
282.4 |
|
Portfolio investment |
61.4 |
50.7 |
149.2 |
134.5 |
|
Financial derivatives |
0.3 |
0.3 |
0.5 |
0.4 |
|
Other investment |
608.6 |
615.3 |
221.8 |
221.8 |
|
Reserve assets |
593.5 |
633.7 |
|
|
Foreign assets of the Russian Federation increased by $22.8 billion and amounted to $1,583 billion. The growth of other investment and reserve assets played a decisive role.
Since the end of the preceding quarter, external liabilities of the Russian Federation have decreased by $48.0 billion to $639 billion, mainly as a result of a decrease in indebtedness on direct and portfolio investment.
International investment position of the Russian Federation, in billions of US dollars
External debt of the Russian Federation
As of September 30, 2024, the external debt of the Russian Federation amounted to $309 billion (15% of GDP over the past 12 months), having decreased by $6.0 billion since the end of Q2 2024.
The decrease in the external debt was mainly due to a 3.9% decline in the debt of other sectors, mainly on raised loans, including within the framework of the direct investment relationship. On the contrary, the external debt of the central bank and banks increased by 3.0%. External government debt to non-residents decreased by 5.6%, mainly in the form of non-resident investments in sovereign securities.