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EU current account surplus €82.9 bn

Christian Fernsby ▼ | October 6, 2020
In the second quarter of 2020, marked severely by coronavirus containment measures in the Member States, the EU seasonally adjusted current account of the balance of payments recorded a surplus of €82.9 billion (2.7% of GDP).
Europe Amsterdam
Account surplus   Europe Amsterdam
That is up from a surplus of €52.9 billion (1.5% of GDP) in the first quarter of 2020 and from a surplus of €72.7 billion (2.1% of GDP) in the second quarter of 2019, according to estimates released by Eurostat.

In the second quarter of 2020 compared with the first quarter of 2020, based on seasonally adjusted data, the surplus of the goods account decreased (+€48.9 bn compared to +€83.5 bn).

The deficit of the services account moved to surplus (+€24.8 bn compared to -€5.8 bn), as did the deficit of the primary income account (+€24.8 bn compared to -€10.1 bn), while the deficit of the secondary income account grew (-€15.5 bn compared to -€14.7 bn). The deficit of the capital account increased (-€8.6 bn compared to -€4.1 bn).

Main partners

In the second quarter of 2020, based on non-seasonally adjusted data, the EU recorded external current account surpluses with the United Kingdom (+€35.6 bn), the USA (+€15.8 bn), Switzerland (+€15.5 bn), Russia (+€6.7 bn), Canada (+€6.2 bn), Hong Kong (+€4.4 bn) and Brazil (+€3.5 bn).

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Deficits were registered with China (-€29.0 bn), offshore financial centres (-€9.5 bn), Japan (-€0.5 bn) and India (-€0.2 bn).

Financial account

Based on non-seasonally adjusted data, direct investment assets of the EU increased in the second quarter of 2020 by €27.6 bn, while direct investment liabilities grew by €176.0 bn. As a result, the EU was a net recipient of direct investment from rest of the world in the second quarter of 2020 by €148.3 bn.

Portfolio investment recorded a net outflow of €159.9 bn, while for other investment there was a net inflow of €181.5 bn.

Current account of Member States (including intra-EU flows)

As concerns the total (intra-EU plus extra-EU) current account balances of the EU Member States, based on available non-seasonally adjusted data, fifteen recorded surpluses, ten deficits and two were in balance in the first quarter of 2020.

The highest surpluses were observed in Germany (+€36.3 bn), the Netherlands (+€12.6 bn), Ireland (+€11.7 bn), Poland (+€6.6 bn), Denmark and Sweden (both +€5.9 bn), and the largest deficits in France (-€14.3 bn), Greece (-€3.5 bn) and Romania (-€3.0 bn).

The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.

The euro area (EA19) includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

Offshore Financial Centres (OFC) is an aggregate which includes 40 countries. As examples, the aggregate contains financial centres such as Liechtenstein, Guernsey, Jersey, the Isle of Man, Andorra, Gibraltar, Panama, Bermuda, the Bahamas, the Cayman Islands, British Virgin Islands, Bahrain, Hong Kong, Singapore and the Philippines.


 

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