Euro area monthly balance of payments: August 2023

• PRESS RELEASE

Euro area monthly balance of payments: August 2023

19 October 2023

• Current account recorded €28 billion surplus in August 2023, up from €21 billion in previous month
• Current account surplus amounted to €126 billion (0.9% of euro area GDP) in 12 months to August 2023, up from €12 billion (0.1%) one year earlier
• In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €307 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €489 billion in 12 months to August 2023

The current account of the euro area recorded a surplus of €28 billion in August 2023, an increase of €7 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€35 billion) and services (€6 billion). These were partly offset by a deficit for secondary income (€13 billion). The primary income balance was close to zero.

Data for the current account of the euro area

In the 12 months to August 2023, the current account recorded a surplus of €126 billion (0.9% of euro area GDP), compared with a surplus of €12 billion (0.1% of euro area GDP) one year earlier. The widening of the surplus was mainly driven by a switch from a deficit (€23 billion) to a surplus (€155 billion) for goods, and to a lesser extent, by a smaller deficit for secondary income (down from €175 billion to €157 billion). These developments were partly offset by smaller surpluses for primary income (down from €61 billion to €5 billion) and for services (down from €149 billion to €124 billion).

In direct investment, euro area residents made net disinvestments of €368 billion in non-euro area assets in the 12 months to August 2023, following net investments of €376 billion one year earlier (Chart 2 and Table 2). Non-residents disinvested €516 billion in net terms from euro area assets in the 12 months to August 2023, following net investments of €65 billion one year earlier.

In portfolio investment, euro area residents’ net sales of non-euro area equity decreased to €2 billion in the 12 months to August 2023, down from €78 billion one year earlier. Over the same period, net purchases of non-euro area debt securities by euro-area residents increased to €309 billion, up from €78 billion one year earlier. Non-residents’ net purchases of euro area equity decreased to €156 billion in the 12 months to August 2023, down from €231 billion one year earlier. Over the same period, non-residents made net purchases of euro area debt securities amounting to €334 billion, following net sales of €162 billion one year earlier.

Data for the financial account of the euro area

In other investment, euro area residents recorded net disposals of non-euro area assets amounting to €97 billion in the 12 months to August 2023 (following net acquisitions of €509 billion one year earlier), and they recorded net disposals of liabilities amounting to €294 billion (following net acquisitions of €735 billion one year earlier).

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €150 billion in the 12 months to August 2023. This increase was driven by the current and capital accounts surplus and euro area non-MFIs’ net inflows in portfolio investment debt, portfolio investment equity and other investment. These developments were partly offset by euro area non-MFIs’ net outflows in direct investment and other flows.

In August 2023 the Eurosystem’s stock of reserve assets increased to €1,118.8 billion up from €1,109.7 billion in the previous month (Table 3). This increase was mostly driven by positive price changes (€4.5 billion) and positive exchange rate changes (€3.5 billion) and, to a lesser extent, by net acquisitions of assets (€1.3 billion).

Data for the reserve assets of the euro area

Data revisions

This press release incorporates revisions to the data for July 2023. These revisions did not significantly alter the figures previously published.

Next releases:

• Monthly balance of payments: 17 November 2023 (reference data up to September 2023)
• Quarterly balance of payments: 11 January 2024 (reference data up to the third quarter of 2023)^[1]

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

Notes

• Current account data are always seasonally and working day-adjusted, unless otherwise indicated, whereas capital and financial account data are neither seasonally nor working day-adjusted.
• Hyperlinks in this press release lead to data that may change with subsequent releases as a result of revisions.

1. On 27 October 2023 there will be a second release of the quarterly balance of payments and international investment position data (reference data up to the second quarter of 2023) with revisions to data for periods since at least the first quarter of 2013. This second release will not include a press or statistical release and is aimed at ensuring consistency between the balance of payments/international investment position and the euro area sector accounts.

European Central Bank