Eurozone current account surplus rose in June

According to the report from European Central Bank, the current account of the euro area recorded a surplus of €21 billion in June 2020, increasing by €10 billion from the previous month. Surpluses were recorded for goods (€25 billion), services (€4 billion) and primary income (€2 billion). These were partly offset by a deficit for secondary income (€10 billion).

In the 12 months to June 2020, the current account recorded a surplus of €267 billion (2.2% of euro area GDP), compared with a surplus of €305 billion (2.6% of euro area GDP) in the 12 months to June 2019. This decline was mainly driven by decreases in the surpluses for services (down from €88 billion to €31 billion) and primary income (down from €89 billion to €65 billion). These developments were partly offset by an increase in the surplus for goods (up from €287 billion to €321 billion) and a decrease in the deficit for secondary income (down from €159 billion to €150 billion).

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities totalling €514 billion in the 12-month period to June 2020 (up from €134 billion in the 12 months to June 2019). Over the same period, non-residents made net acquisitions of euro area portfolio investment securities amounting to €439 billion (up from €132 billion).