Eurozone current account balance widens in May

According to the report from European Central Bank, the current account of the euro area recorded a surplus of €30 billion in May 2019, an increase of €8 billion from the previous month. Surpluses were recorded for goods (€27 billion), primary income (€8 billion) and services (€5 billion). These were partly offset by a deficit for secondary income (€10 billion).

In the 12 months to May 2019, the current account recorded a surplus of €323 billion (2.8% of euro area GDP), compared with a surplus of €392 billion (3.4% of euro area GDP) in the 12-month period to May 2018. This decline was driven by smaller surpluses for goods (down from €322 billion to €287 billion), services (down from €114 billion to €102 billion) and primary income (down from €94 billion to €92 billion), as well as by a larger deficit for secondary income (up from €138 billion to €158 billion).

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities totalling €61 billion in the 12-month period to May 2019 (decreasing from €555 billion in the 12-month period to May 2018). Non-residents’ net purchases of euro area portfolio investment securities amounted to €50 billion (down from €279 billion).