Monthly developments in August 2000 and revisions for 1997-1999 and the second quarter of 2000

In the first eight months of 2000, the current account balance recorded a deficit of EUR 18.9 billion, compared to a surplus of EUR 3.9 billion for the corresponding months of 1999. A EUR 20.6 billion decrease in the goods surplus (from EUR 57.6 billion to EUR 37.0 billion) explains most of the deterioration. In addition, there was a EUR 4.2 billion increase in the current transfers deficit, while the deficits for services and income registered small declines. Portfolio investment recorded net inflows in August of EUR 15.3 billion, with net inflows in debt instruments, mostly bonds and notes, of the same amount. Unlike the situation in other months of the year there were no net portfolio equity outflows in August, partly because some direct investments abroad were financed by the take-up of shares by non-residents in the investing companies. In the first eight months of 2000, combined net direct and portfolio investment outflows amounted to EUR 58.6 billion, less than half the net outflow in the corresponding period last year (EUR 125.1 billion). As in earlier periods of the year, the main component of these outflows continued to be net direct and portfolio equity transactions. Together, they amounted to net outflows of EUR 166.2 billion over the period (EUR 112.4 billion in the corresponding months of 1999). On the other hand, there were net inflows in debt securities of EUR 107.6 billion, contrasting with a net outflow of EUR 12.7 billion in the first eight months of 1999. In addition to the key items for August 2000, this press release incorporates a revised and more detailed set of balance of payments (b.o.p.) statistics for the second quarter of 2000 as well as revisions for 1997-1999. Annex 1 Annex 2 (  pdf 7 kB,

In August 2000, the current account recorded a deficit of EUR 2.2 billion (compared to a deficit of EUR 1.8 billion in August 1999). The increase in the deficit between August 2000 and August 1999 reflects small increases in the deficits for income and current transfers, only partially offset by an improvement in the balance for services; the balance for goods was unchanged. In the financial account, direct investment recorded net outflows of EUR 45.7 billion in August 2000, reflecting direct investment abroad by euro area residents of EUR 53.7 billion and inward direct investment of EUR 8.0 billion. Elsewhere in the financial account, net outflows in financial derivatives amounted to EUR 0.6 billion in August 2000. Net inflows to other investment amounted to EUR 25.9 billion. Reserve assets decreased by EUR 1.2 billion in August 2000 (excluding valuation effects). Errors and omissions amounted to EUR 6.1 billion in August 2000, and to a negative EUR 34.8 billion in the first eight months of 2000. In particular, in the euro area current account, the goods balance has incorporated the result of a methodological change implemented by one Member State concerning the treatment of transit trade. This is the main contributor to the revision in the net goods balance, which amounts to ECU 9.1 billion in 1997, ECU 9.5 billion in 1998 and EUR 16.1 billion in 1999. Overall, after revisions the current account surplus for 1997 and 1998 is now ECU 61.5 billion and ECU 31.1 billion respectively (compared with ECU 76.2 billion and ECU 43.3 billion previously). For 1999 the current account now shows a deficit of EUR 5.8 billion (compared with the previously reported surplus of EUR 22.8 billion). to this press release contains statistics produced by the Eurosystem for the monthly balance of payments of the euro area for 1999 and 2000;

en Annex 3 (  pdf 17 kB,

 ) shows more detailed information for the second quarter of 2000;

en The results for August 2000 will also be published in the November 2000 issue of the

 ) includes the revised figures from 1997.

ECB Monthly Bulletin The European Central Bank and the European Commission (Eurostat) simultaneously disseminate press releases on the quarterly balance of payments for the euro area and the EU15. In line with the agreed allocation of responsibility, the European Central Bank is in charge of compiling and disseminating the euro area monthly and quarterly balance of payments statistics, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU15. The data comply with international standards, in particular those set out in the IMF Manual on Balance of Payments Statistics (5th edition). The aggregates for the euro area and the EU15 are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively.

. A detailed methodological note on euro area b.o.p. statistics is available on the ECB's website.

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