Eurozone сurrent account surplus surges in July

According to the report from European Central Bank, in July 2019 the current account of the euro area recorded a surplus of €21 billion, compared with a surplus of €18 billion in June 2019. Surpluses were recorded for goods (€26 billion), primary income (€6 billion) and services (€2 billion). These were partly offset by a deficit for secondary income (€14 billion).

In the 12 months to July 2019, the current account recorded a surplus of €317 billion (2.7% of euro area GDP), compared with a surplus of €383 billion (3.3% of euro area GDP) in the 12 months to July 2018. This decline was mainly driven by a smaller surplus for services (down from €117 billion to €89 billion) and a bigger deficit for secondary income (up from €139 billion to €159 billion). Smaller surpluses for goods (down from €311 billion to €297 billion) and primary income (down from €93 billion to €90 billion) also contributed to the decline.

In the financial account, euro area residents made net acquisitions of foreign portfolio investment securities totalling €87 billion in the 12-month period to July 2019 (down from €457 in the 12 months to July 2018). Non-residents made net acquisitions of euro area portfolio investment securities amounting to €101 billion (down from €246 billion).