- Current account recorded €26 billion deficit in August 2022, increasing from €20 billion in previous month
- Current account recorded deficit of €19 billion (0.1% of euro area GDP) in 12 months to August 2022, after surplus of €338 billion (2.8%) one year earlier
- In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €38 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €42 billion in 12 months to August 2022
The current account deficit of the euro area amounted to €26 billion in August 2022, an increase of €6 billion from the previous month (Chart 1 and Table 1). Deficits were recorded for goods (€21 billion) and secondary income (€15 billion). These were partly offset by surpluses for services (€7 billion) and primary income (€3 billion).
Dataforthecurrentaccountoftheeuroarea
In the 12 months to August 2022, the current account recorded a deficit of €19 billion (0.1% of euro area GDP), compared with a surplus of €338 billion (2.8% of euro area GDP) in the 12 months to August 2021. This change in the balance was mainly driven by a switch from a surplus (€374 billion) to a deficit (€9 billion) for goods and, to a lesser extent, by a reduction in the surplus for primary income (down from €58 billion to €19 billion) and a slightly larger deficit for secondary income (up from €163 billion to €165 billion). These developments were partly offset by a larger surplus for services (up from €70 billion to €136 billion).
In direct investment, euro area residents made net investments of €186 billion in non-euro area assets in the 12-month period to August 2022, following net investments of €24 billion in the 12 months to August 2021 (Chart 2 and Table 2). Non-residents disinvested €3 billion in net terms from euro area assets in the 12-month period to August 2022, following net disinvestments of €63 billion in the 12 months to August 2021.
In portfolio investment, euro area residents’ net sales of non-euro area equity amounted to €56 billion in the 12 months to August 2022, following net purchases of €540 billion in the 12 months to August 2021. In the 12 months to August 2022, net purchases of non-euro area debt securities by euro area residents decreased to €94 billion, down from €425 billion in the 12 months to August 2021. Non-residents’ net purchases of euro area equity decreased to €203 billion in the 12-month period to August 2022, down from €435 billion in the 12 months to August 2021. Over the same period non-residents made net sales of euro area debt securities amounting to €161 billion, following net sales of €277 billion in the 12 months to August 2021.
Dataforthefinancialaccountoftheeuroarea
In other investment, euro area residents recorded net acquisitions of non-euro area assets amounting to €467 billion in the 12 months to August 2022 (following net acquisitions of €86 billion in the 12 months to August 2021), while their net incurrence of liabilities increased to €674 billion (up from €616 billion in the 12 months to August 2021).
The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €159 billion in the 12-month period to August 2022. This decrease was driven by euro area non-MFIs’ net outflows in direct investment, other investment, portfolio investment debt and other flows. These developments were partly offset by the current and capital accounts surplus and by euro area non-MFIs’ net inflows in portfolio investment equity.
In August 2022 the Eurosystem’s stock of reserve assets increased to €1,130.6 billion, up from €1,129.2 billion in the previous month (Table 3). This increase was driven by positive exchange rate changes (€4.4 billion) and, to a lesser extent, by net acquisitions of assets (€2.2 billion), which were partly offset by negative price changes (€5.1 billion).
Dataforthereserveassetsoftheeuroarea
Datarevisions
This press release incorporates revisions to the data for July 2022, which mainly affect portfolio investment. It also includes revisions to the seasonally adjusted current account components from January 2008 onwards owing to the incorporation of newly estimated seasonal factors. These revisions did not significantly alter the overall pattern of figures previously published.
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