Balance of payments, international investment position and external debt of the Russian Federation in the 2nd quarter of 2024
The Bank of Russia published the balance of payments, international investment position and the external debt of the Russian Federation in Q2 2024 and revised indicators of Q1 2024 due to the receipt of additional reporting data as of September 30, 2024.
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 |
|
Current account |
15.6 | 7.7 | 15.5 | 11.3 | 24.1 | 17.4 |
|
Trade balance |
30.5 | 26.3 | 33.4 | 31.4 | 34.9 | 35.8 |
|
Balance on services |
-7.6 | -8.9 | -10.3 | -8.4 | -7.3 | -9.4 |
|
Balance on primary and secondary income |
-7.3 | -9.6 | -7.6 | -11.7 | -3.5 | -9.1 |
|
Balance on financial account |
13.0 | 4.7 | 12.1 | 11.7 | 25.0 | 17.2 |
|
Net acquisition of financial assets, excluding reserve assets |
6.4 | 10.9 | 22.5 | 4.2 | 24.8 | 13.1 |
|
Net incurrence of liabilities |
-11.7 | 4.7 | 8.2 | -8.7 | -7.1 | -5.4 |
|
Reserve assets |
-5.1 | -1.4 | -2.3 | -1.2 | -6.9 | -1.3 |
The current account surplus in Q2 2024 increased by $9.7 billion compared to the corresponding period of 2023 due to an increase in the trade balance related to a reduction in imports of goods with a stable export dynamics. At the same time, there was a decline in the current account surplus compared to the previous quarter, which is associated with a seasonal increase in investment income accrued in favor of non-residents.
Main components of the current account, in billions of US dollars
Exports of goods remained virtually unchanged compared to the last year. Imports of goods decreased by 9.4%, among other things, under the influence of a number of systemic restrictions that have made greater supply chains complexity. Compared to Q1 2024, exports and imports of goods, on the contrary, increased by 4.2% and 5.1% respectively. The exports dynamics was mainly influenced by a growth in world prices for the main goods of Russian exports. The rise in imports was primarily due to an increase in physical volumes of inflow of goods.
Trade balance of the Russian Federation, in billions of US dollars
The deficit in the balance on services remained virtually unchanged compared to Q2 2023, however it increased compared to the previous quarter, which is associated with the seasonal growth in Russians’ spending on foreign trips.
Balance on services, in billions of US dollars
The total deficit in the balance on primary and secondary income income insignificantly decreased compared to the previous year with an equivalent reduction in income received and paid. Compared to Q1 2024, it grew by $5.6 billion as a result of dividends declared by large Russian companies.
The balance on the financial account amounted to $17.2 billion.
Net lending by sectors, in billions of US dollars
The growth in financial assets of $11.8 billion was mainly driven by an increase in claims on other investment to non-residents with a slight decrease in assets in the form of other functional categories. The changes compared to the preliminary estimate are related to a revision of other investment and direct investment data.
Net acquisition of financial assets by residents by functional categories, in billions of US dollars
External liabilities reduced by $5.4 billion. The reduction was across all functional categories, however the most significant decrease was in direct investment due to a decline in liabilities on raised loans, as well as accounts payable. The changes compared to the preliminary estimate are also related to a revision of other investment and direct investment data.
Net incurrence of liabilities by residents by functional categories, in billions of US dollars
International investment position of the Russian Federation
The net international investment position of the Russian Federation slightly grew during Q2 2024 (from $882 billion as of March 31, 2024 to $883 billion as of June 30, 2024): an acquisition of foreign assets was almost completely offset by positive revaluations of liabilities and other changes.
Foreign assets and liabilities of the Russian Federation, in billions of US dollars
|
|
Assets | Liabilities | ||
|---|---|---|---|---|
|
Position as of March 31, 2024 |
Position as of June 30, 2024 |
Position as of March 31, 2024 |
Position as of June 30, 2024 |
|
|
Total |
1 556.5 |
1 558.9 |
674.5 |
675.9 |
|
Direct investment |
308.4 |
299.1 |
318.1 |
318.1 |
|
Portfolio investment |
68.8 |
61.4 |
148.0 |
149.2 |
|
Financial derivatives |
0.4 |
0.3 |
0.4 |
0.5 |
|
Other investment |
588.5 |
604.6 |
208.0 |
208.2 |
|
Reserve assets |
590.4 |
593.5 |
|
|
Foreign assets of the Russian Federation increased by $2.4 billion and amounted to $1,559 billion. The key drivers were transactions reflected in the balance of payments and positive revaluations related to a strengthening of currencies other than the US dollar, largely offset by a negative other changes, including those caused by the ongoing process of deoffshorization of Russian business.
External liabilities of the Russian Federation increased since the end of Q1 2024 by $1.4 billion to $676 billion due to a positive revaluation associated with a strengthening of the Russian ruble against the US dollar, with a negative impact of transactions on redemption of liabilities to non-residents and other changes related to the withdrawal of non-residents from the Russian companies’ equity.
International investment position of the Russian Federation, in billions of US dollars
External debt of the Russian Federation
The external debt of the Russian Federation as of June 30, 2024 amounted to $302 billion (15% of GDP over the last 12 months), having decreased by $1.3 billion since the end of Q1 2024.
The reduction in the external debt was due to a decline in other sectors’ liabilities by 4.7% mainly on raised loans, including within the framework of direct investment relationship. Foreign debt of central bank and banks, on the contrary, increased by 7.4%. General government’s indebtedness to non-residents grew by 1.5%.