Press release

20 July 2020

• In May 2020 the current account of the euro area recorded a surplus of €8 billion, compared with a surplus of €14 billion in April 2020.
• In the 12-month period to May 2020, the current account recorded a surplus of €264 billion (2.2% of euro area GDP), compared with a surplus of €318 billion (2.7% of euro area GDP) in the 12 months to May 2019.
• In the financial accounteuro area residents made net acquisitions of foreign portfolio investment securities totalling €468 billion in the 12-month period to May 2020 (up from €72 billion in the 12 months to May 2019). Over the same period, non-residents made net acquisitions of euro area portfolio investment securities amounting to €355 billion (up from €132 billion).

The current account of the euro area recorded a surplus of €8 billion in May 2020, decreasing by €6 billion from the previous month (see Chart 1 and Table 1). Surpluses were recorded for goods (€17 billion), primary income (€5 billion) and services (€4 billion). These were partly offset by a deficit for secondary income (€18 billion).

Data for the current account of the euro area

In the 12 months to May 2020, the current account recorded a surplus of €264 billion (2.2% of euro area GDP), compared with a surplus of €318 billion (2.7% of euro area GDP) in the 12 months to May 2019. This decline was mainly driven by a reduction in the surpluses for services (down from €99 billion to €31 billion) and primary income (down from €89 billion to €69 billion). These developments were partly offset by a larger surplus for goods (up from €289 billion to €317 billion) and a smaller deficit for secondary income (down from €159 billion to €152 billion).

In direct investment, euro area residents made net investments of €49 billion in non-euro area assets in the 12-month period to May 2020, following net disinvestments of €156 billion in the 12 months to May 2019 (see Chart 2 and Table 2). At the same time, non-residents made net investments in euro area assets of €126 billion in the 12-month period to May 2020, following net disinvestments of €237 billion in the 12 months to May 2019.

In portfolio investment, net purchases of foreign debt securities by euro area residents increased to €382 billion in the 12-month period to May 2020, following net purchases of €106 billion in the 12 months to May 2019. Over the same period, euro area residents made net purchases in foreign equity of €86 billion, after net sales of €33 billion in the 12 months to May 2019. Non-residents made net purchases of euro area debt securities (€38 billion) in the 12 months to May 2020, after recording net sales of €6 billion in the 12 months to May 2019. Over the same period, non-residents’ net purchases of euro area equity rose to €317 billion from €139 billion.

Data for the financial account of the euro area

In other investment, euro area residents’ net acquisitions of foreign assets increased to €394 billion in the 12 months to May 2020 (following net acquisitions of €254 billion in the 12 months to May 2019), while their net incurrence of liabilities increased to €248 billion from €63 billion.

The monetary presentation of the balance of payments (see Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €145 billion in the 12-month period to May 2020. This increase was mainly driven by current and capital accounts surpluses and, to a lesser extent, by euro area non-MFIs’ net inflows in direct investment and portfolio investment equity. These developments were partly offset by euro area non-MFIs’ net outflows in portfolio investment debt securities and by other flows, in particular other investment net outflows.

In May 2020 the Eurosystem’s stock of reserve assets decreased to €895.8 billion, down from €909.9 billion in the previous month (see Table 3). This decrease was largely driven by negative price and exchange rate changes (€7.9 billion and €7.8 billion respectively), which were only partly offset by net acquisitions of assets (€1.6 billion).

Data for the reserve assets of the euro area

Data revisions

This press release incorporates revisions to the data for April 2020.These revisions did not significantly alter the figures previously published.

The production of monthly b.o.p. statistics has in most countries been affected by the COVID-19 crisis. The lockdown measures implemented across the euro area have created challenges for the data collection and compilation process. In addition, the abrupt economic impact of these measures has caused particular difficulties for the estimation of infra-annual data. The releases are therefore subject to higher uncertainty. More information on the potential impact of the COVID-19 crisis on b.o.p. statistics can be found here.

Next press releases:

• monthly balance of payments: 19 August 2020 (reference data up to June 2020)
• quarterly balance of payments and international investment position: 2 October 2020 (reference data up to the second quarter of 2020)

For media queries, please contact Philippe Rispal, tel.: +49 69 1344 5482.

Notes

• Hyperlinks in this press release lead to data that may change with subsequent releases as a result of revisions.