Monthly developments in November 2003 and revisions from April up to October 2003

Seasonally adjusted current account in surplus in November

Compared with the revised data for October 2003, the seasonally adjusted current account surplus decreased by EUR 6.3 billion in November. This was the result of reductions in the surpluses for goods (by EUR 3.2 billion) and services (by EUR 1.9 billion), as well as an increase of EUR 4.2 billion in the deficit of current transfers. The income deficit decreased by EUR 3.0 billion. Euro area balance of payments: 12-month cumulated flows (Euro 12; EUR billions) ------ net direct investment ––– net portfolio investment

The seasonally adjusted current account of the euro area showed a surplus of EUR 1.7 billion in November 2003 (EUR 4.4 billion in non-seasonally adjusted terms). This reflected surpluses in both goods (EUR 7.9 billion) and services (EUR 1.0 billion), which were partly offset by deficits in income (EUR 1.4 billion) and current transfers (EUR 5.8 billion). The 12-month cumulated surplus of the euro area current account up to November 2003 amounted to EUR 30.6 billion, i.e. around 0.4 % of GDP, as compared with EUR 65.5 billion a year before. This development resulted from a lower surplus for goods (mainly reflecting lower exports), together with higher deficits for income and current transfers. These developments were partly offset by a higher services surplus. ––– current account balance             

Net inflows in direct investment

The developments in direct investment largely resulted from non-residents' equity capital investment (including reinvested earnings) in the euro area (EUR 5.0 billion), and disinvestment abroad in the same category by euro area residents (EUR 4.1 billion). Other investment recorded net outflows of EUR 8.3 billion in November 2003, mainly as a result of a larger increase in the short-term external assets of monetary financial institutions (MFIs) than in their short-term liabilities. Template on international reserves and foreign currency liquidity In the 12-month period up to November 2003, combined direct and portfolio investment recorded cumulated net outflows of EUR 2.4 billion, as compared with cumulated net inflows of EUR 58.5 billion a year earlier. This mainly resulted from lower net inflows in portfolio investment, stemming in particular from an increase in investment by euro area residents in foreign debt instruments (up from EUR 125.7 billion to EUR 225.8 billion) and, to a lesser extent, in equity securities (up from EUR 39.4 billion to EUR 75.2 billion). These outflows were partially offset by an increase in net purchases by non-residents of debt instruments issued by euro area residents (up from EUR 151.8 billion to EUR 221.9 billion). Turning to direct investment, net outflows for the 12-month period up to November 2003 were slightly lower than for the same period one year earlier; both cumulated direct investment abroad and direct investment in the euro area decreased, by EUR 124.5 billion and EUR 111.1 billion respectively.

In the financial account, combined direct and portfolio investment showed net inflows of EUR 2.2 billion in November 2003, reflecting net inflows in direct investment (EUR 6.5 billion), and net outflows of EUR 4.3 billion in portfolio investment. The developments in portfolio investment were due to net purchases by euro area investors of foreign securities (EUR 26.8 billion), predominantly debt instruments (EUR 19.7 billion), which exceeded net purchases by non-residents of euro area securities (EUR 22.5 billion), particularly equity securities (EUR 15.9 billion). Reserve assets decreased by EUR 5.5 billion in November 2003 (excluding valuation effects). The stock of the Eurosystem's reserve assets stood at EUR 321.9 billion at the end of November 2003 (   ).

Data revisions

Revisions have reduced the (non-seasonally adjusted) euro area current account surplus for the third quarter by EUR 2.9 billion, to EUR 13.6 billion. By contrast, for October, the revisions have increased the current account surplus by EUR 1.2 billion to EUR 9.3 billion.

Additional information on the sharing of responsibilities with regard to the compilation of the b.o.p. of the euro area and EU15

Eurostat's Euro-indicators News Releases The results up to November 2003 will also be published in the February 2004 issue of the

In addition to the monthly data for November 2003, this press release incorporates additional breakdowns for the third quarter of 2003, as well as a revised set of balance of payments statistics from April up to October 2003. In the financial account, the main amendment consisted of a EUR 15.2 billion increase in net inflows of portfolio investment in the second quarter, essentially stemming from larger than previously assessed net purchases by non-residents of euro area debt instruments. The European Central Bank and the European Commission (Eurostat) each disseminate on the same day a press release 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 for 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. The next press release on euro area balance of payments is scheduled for publication on 24 February 2004.

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

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