Monthly developments in May 2002 and revisions for the fourth quarter of 2001 and first quarter of 2002

During the first five months of 2002, the cumulated current account balance turned into a surplus of EUR 5.4 billion from a deficit of EUR 19.4 billion over the same period last year, stemming from an increase in the goods surplus from EUR 12.9 billion to EUR 44.7 billion. The slightly higher deficit in services, income and current transfers only partly offset this movement. In the financial account, combined direct and portfolio investment in the euro area experienced large net inflows of EUR 37.1 billion in May 2002, owing mainly to high net inflows in portfolio investment (EUR 32.0 billion). On a cumulated basis during the first five months of 2002, combined direct and portfolio investment recorded net outflows which were substantially lower (EUR 15.3 billion) than during the same period in 2001 (EUR 123.9 billion). In addition to the key items for May 2002, this press release incorporates a revised set of balance of payments (b.o.p.) statistics for the fourth quarter of 2001 and the first quarter of 2002 (Table 3). Following these revisions, the current account surplus amounted to EUR 10.7 billion in the fourth quarter of 2001 (EUR 4.3 billion lower than in the previous release) and to EUR 11.1 billion in the first quarter of 2002 (EUR 6.8 billion higher than in the previous release).

Note on balance of payments statistics produced by the Eurosystem

Euro-indicators News Releases The results up to May 2002 will also be published in the August 2002 issue of the

The euro area current account balance showed a small surplus of EUR 0.1 billion in May 2002 compared with a deficit of EUR 2.2 billion in May 2001. This development is the result of an increase in the goods surplus (from EUR 4.4 billion to EUR 9.2 billion), more than offsetting an increase (of EUR 2.5 billion) in the income deficit, while the balances for services and current transfers remained virtually unchanged. Looking at month-on-month developments on the basis of seasonally adjusted data, the surplus on trade in goods increased by EUR 4.0 billion in May 2002 compared with April, as exports of goods grew by 4.0% and imports of goods fell by 0.9%. Within portfolio investment, large net inflows were recorded in equity securities (EUR 21.9 billion) and money market instruments (EUR 8.4 billion), while net inflows in bonds and notes were of a smaller magnitude (EUR 1.7 billion). The other investment account recorded net outflows of EUR 32.4 billion in May 2002. Reserve assets decreased by EUR 2.1 billion (excluding valuation effects) and net errors and omissions were EUR -6.1 billion. In the financial account, the main revisions for the fourth quarter of 2001 occurred in other investment (additional net outflows of EUR 3.7 billion) and direct investment (additional net inflows of EUR 1.4 billion). As regards the first quarter of 2002, the main revisions concerned portfolio investment outflows (up by EUR 11.8 billion) and direct investment net outflows (up by EUR 5.4 billion). The European Central Bank and the European Commission (Eurostat) each disseminate a press release on the same day on the quarterly balance of payments for the euro area and the EU15 (   ). In line with the agreed allocation of responsibilities, the European Central Bank compiles and disseminates monthly and quarterly balance of payments statistics for the euro area, 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 Balance of Payments Manual (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.

ECB Monthly Bulletin

Annexes

. A detailed methodological note is available on the ECB's website.

Table 1 Table 2 Table 3

European Central Bank Press and Information Division Kaiserstrasse 29, D-60311 Frankfurt am Main Tel.: +49 69 13 44 74 55, Fax: +49 69 13 44 74 04 Internet: http://www.ecb.europa.eu

: Monthly balance of payments of the euro area for 2001 and 2002. : Euro area current account - seasonally adjusted data. : Quarterly balance of payments data of the euro area. Reproduction is permitted provided that the source is acknowledged