Eurozone сurrent account surplus unexpectedly rose in October

European Central Bank said, in October 2019 the current account of the euro area recorded a surplus of €32 billion, compared with a surplus of €28 billion in September 2019. Surpluses were recorded for goods (€30 billion), services (€10 billion) and primary income (€6 billion). These were partly offset by a deficit for secondary income (€13 billion).

In the 12 months to October 2019, the current account recorded a surplus of €324 billion (2.7% of euro area GDP), compared with a surplus of €373 billion (3.2% of euro area GDP) in the 12 months to October 2018. This decline was mainly driven by a reduction in the surpluses for services (down from €117 billion to €79 billion) and to a smaller extent for primary income (down from €89 billion to €77 billion), but also by a widening of the secondary income deficit (up from €142 billion to €160 billion). These developments were only partly offset by a larger surplus for goods (up from €308 billion to €328 billion).

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities totalling €308 billion in the 12-month period to October 2019 (up from €283 billion in the 12 months to October 2018). Over the same period, non-residents made net acquisitions of euro area portfolio investment securities amounting to €276 billion (up from €146 billion).