Eurozone trade surplus rose markedly in August

According to the report from European Central Bank, in August 2019 the current account of the euro area recorded a surplus of €27 billion, compared with a surplus of €22 billion in July 2019. Surpluses were recorded for goods (€28 billion), primary income (€7 billion) and services (€5 billion). These were partly offset by a deficit for secondary income (€14 billion).

In the 12 months to August 2019, the current account recorded a surplus of €312 billion (2.7% of euro area GDP), compared with a surplus of €398 billion (3.5% of euro area GDP) in the 12 months to August 2018. All major components contributed to this decline, particularly a smaller surplus for services (down from €119 billion to €73 billion) and a bigger deficit for secondary income (up from €138 billion to €161 billion). Smaller surpluses were also recorded for goods (down from €328 billion to €314 billion) and primary income (down from €89 billion to €86 billion).

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities totalling €153 billion in the 12-month period to August 2019 (down from €411 billion in the 12 months to August 2018). Over the same period, non-residents made net acquisitions of euro area portfolio investment securities amounting to €208 billion (up from €153 billion).