- 听surplus at 鈧�231 billion (2.0% of euro area GDP) in four quarters to third quarter of 2020, down from 鈧�265 billion a year earlier
- : largest bilateral surpluses vis-脿-vis听United Kingdom听(鈧�138 billion) and听United States听(鈧�73 billion), with听largest deficits听vis-脿-vis听offshore centres听(鈧�100 billion) and听China听(鈧�79 billion)
- 听showed net liabilities of 鈧�10 billion (around 0.1% of euro area GDP)听at end of third quarter
Current account
罢丑别听current account听surplus of the听euro area declined to 鈧�231 billion (2.0% of euro area GDP) in the four quarters to the third quarter of 2020, from 鈧�265 billion a year earlier (see Table听1). This decrease reflected a reduction in the surpluses for听services听(from 鈧�72听billion to 鈧�10 billion) and听primary income听(from 鈧�60听billion to 鈧�40听billion).听These developments were partly offset by an increase in the surplus for听goods听(from 鈧�297听billion to 鈧�326听billion) and a lower deficit for听secondary income听(down from 鈧�164听billion to 鈧�145听billion).
The smaller surplus for听services听was mainly due to a decline in the surplus for听travel听(from 鈧�40 billion to 鈧�12 billion) and increases in the deficit for听other business services听(from 鈧�81 billion to 鈧�100 billion) and for听other services听(from 鈧�10 billion to 鈧�21 billion). These developments were only partially offset by an increase in the surplus for听telecommunication, computer and information services听(from 鈧�90 billion to 鈧�97听billion).
The decrease in the听primary income听surplus was due to a fall in the surplus for听investment income听(from 鈧�34 billion to 鈧�10 billion). This reflected mainly a lower surplus for听direct investment income听(down from 鈧�99 billion to 鈧�38 billion), which was partly offset by a smaller deficit for听portfolio equity income听(down from 鈧�110 billion to 鈧�77 billion) and a larger surplus for听portfolio debt income听(up from 鈧�29 billion to 鈧�36 billion).
Data on the geographic counterparts of the euro area current account (see Chart 1) show that in the four quarters to the third quarter of 2020 the euro area recorded its largest bilateral surpluses vis-脿-vis the听United Kingdom听(鈧�138 billion, down from 鈧�189 billion a year earlier), the听United States听(鈧�73 billion, down from 鈧�111 billion) and听Switzerland听(鈧�53 billion, down from 鈧�59 billion). It also recorded a current account surplus vis-脿-vis a residual group of听other countries听(鈧�172 billion, up from 鈧�100 billion). The largest bilateral deficits were recorded vis-脿-vis听offshore centres听(鈧�100 billion, up from 鈧�77 billion) and听China听(鈧�79 billion, up from 鈧�69 billion).
The most significant geographic changes in the four quarters to the third quarter of 2020 relative to the previous year were as follows. In the听goods听balance there were decreases in the surpluses vis-脿-vis the听United Kingdom听(from 鈧�113 billion to 鈧�95 billion) and听offshore centres听(from 鈧�49 billion to 鈧�31 billion), an increase in the deficit vis-脿-vis听China听(from 鈧�82 billion to 鈧�92 billion), and a shift from a deficit of 鈧�14 billion to a surplus of 鈧�68 billion vis-脿-vis the residual group of听other countries, partly reflecting a decline in the deficit vis-脿-vis听Russia听(from 鈧�39 billion to 鈧�10 billion). In听services,听the deficit vis-脿-vis the听United States听increased (from 鈧�15 billion to 鈧�58 billion) and the surplus vis-脿-vis the United Kingdom decreased (from 鈧�45 billion to 鈧�31 billion). Moreover, in听primary income听surpluses decreased vis-脿-vis the听United Kingdom听(from 鈧�27 billion to 鈧�11 billion) and vis-脿-vis the residual group of other countries (from 鈧�120 billion to 鈧�106 billion) were recorded, while the听secondary income听deficit vis-脿-vis the听EU Member States and EU institutions outside the euro area听declined from 鈧�103 billion to 鈧�80 billion.
International investment position
At the end of the third quarter of 2020 the international investment position of the euro area recorded net liabilities of 鈧�10 billion vis-脿-vis the rest of the world (0.1% of euro area GDP), compared with net liabilities of 鈧�100 billion in the previous quarter (see Chart听2 and Table听2).
This improvement of 鈧�90 billion reflected large but partly offsetting changes in the various investment components. Smaller net liabilities were recorded for听portfolio equity听(鈧�2,482 billion, down from 鈧�2,616 billion) and听other investment听(鈧�562 billion, down from 鈧�662 billion), while net assets increased in听direct investment听(鈧�1,830 billion, up from 鈧�1,813 billion) and decreased for听portfolio debt听(鈧�392 billion, down from 鈧�531 billion).
The change in the euro area鈥檚 net international investment position in the third quarter of 2020 was driven by positive net flows due to price changes, transactions and other volume changes, which were partially compensated by negative net exchange rate changes (see Chart 3).
The increase in net assets for听direct investment听was mainly due to transactions and positive net price changes, partially compensated by negative net exchange rate changes (see Table 2). Lower net liabilities for听portfolio equity听resulted mainly from positive net price changes and transactions, while lower net liabilities for听other investment听were mainly driven by transactions. The听decrease in net assets for听portfolio debt听was due to negative net flows in transactions, price changes, exchange rate changes and other volume changes (see Table 2).
At the end of the third quarter of 2020 the听gross external debt听of the euro area amounted to 鈧�15.1 trillion (around 133% of euro area GDP), down by 鈧�145 billion compared with the previous quarter.
Data revisions
This statistical release incorporates revisions to data for the reference periods between the first quarter of 2017 and the second quarter of 2020. The revisions reflect revised national contributions to the euro area aggregates as a result of the incorporation of newly available information and do not significantly alter the figures previously published.
Next releases
- Monthly balance of payments: 19 January 2021 (reference data up to November 2020)
- Quarterly balance of payments and international investment position: 9 April 2021 (reference data up to the fourth quarter of 2020)
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