- Current account recorded €12 billion surplus in May 2021, down from €22 billion in previous month
- Current account surplus amounted to €310 billion (2.7% of euro area GDP) in 12 months to May 2021, up from €228 billion (2.0%) one year earlier
- In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €950 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €187 billion in 12 months to May 2021
The current account of the euro area recorded a surplus of €12 billion in May 2021, a decrease of €10 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€25 billion) and services (€6 billion). These were partly offset by deficits for secondary income (€14 billion) and primary income (€5 billion).
Dataforthecurrentaccountoftheeuroarea
In the 12 months to May 2021, the current account recorded a surplus of €310 billion (2.7% of euro area GDP), compared with a surplus of €228 billion (2.0% of euro area GDP) in the 12 months to May 2020. This increase was driven by a larger surplus for goods (up from €309 billion to €375 billion) and for services (up from €39 billion to €76 billion). These developments were partly offset by a reduction in the surplus for primary income (down from €38 billion to €27 billion) and a larger deficit for secondary income (up from €158 billion to €168 billion).
In direct investment, euro area residents made net investments of €28 billion in non-euro area assets in the 12-month period to May 2021, following net disinvestments of €72 billion in the 12 months to May 2020 (Chart 2 and Table 2). Non-residents’ net investments in euro area assets decreased to €53 billion in the 12-month period to May 2021, down from €152 billion in the 12 months to May 2020.
In portfolio investment, net purchases of non-euro area debt securities by euro area residents increased to €427 billion in the 12-month period to May 2021, following net purchases of €407 billion in the 12 months to May 2020. Over the same period, euro area residents’ net purchases of non-euro area equity increased to €522 billion from €91 billion in the 12 months to May 2020. Non-residents made net sales of euro area debt securities amounting to €79 billion in the 12 months to May 2021, following net purchases of €131 billion in the 12 months to May 2020. Over the same period, non-residents’ net purchases of euro area equity increased to €266 billion from €212 billion in the 12 months to May 2020.
Dataforthefinancialaccountoftheeuroarea
In other investment, euro area residents recorded net disposals of non-euro area assets amounting to €16 billion in the 12 months to May 2021 (following net acquisitions of €382 billion in the 12 months to May 2020), while their net incurrence of liabilities increased to €330 billion from €196 billion.
The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €36 billion in the 12-month period to May 2021. This decrease was driven by euro area non-MFIs’ net outflows in portfolio investment debt and portfolio investment equity. These developments were mainly offset by the current and capital accounts surplusand, to a lesser extent, by the euro area non-MFIs’ net inflows in direct investment, other investment and other flows.
In May 2021 the Eurosystem’s stock of reserve assets increased to €885.5 billion, up from €852.1 billion in the previous month (Table 3). This increase was driven by positive changes in the price of gold (€34.1 billion) and, to a lesser extent, by net acquisitions of assets (€1.4 billion), which were partly offset by negative exchange rate changes (€2.2 billion).
ecb.europa.eu
