Euro area monthly balance of payments: April 2021

18 June 2021

• Current account recorded €23 billion surplus in April 2021, up from €18 billion in previous month
• Current account surplus amounted to €288 billion (2.5% of euro area GDP) in 12 months to April 2021, up from €239 billion (2.0%) one year earlier
• In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €1 trillion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €159 billion in 12 months to April 2021

The current account of the euro area recorded a surplus of €23 billion in April 2021, an increase of €5 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€27 billion), services (€8 billion) and primary income (€1 billion). These were partly offset by a deficit for secondary income (€13 billion).

Data for the current account of the euro area

In the 12 months to April 2021, the current account recorded a surplus of €288 billion (2.5% of euro area GDP), compared with a surplus of €239 billion (2.0% of euro area GDP) in the 12 months to April 2020. This increase was driven by a larger surplus for services (up from €27 billion to €82 billion) and, to a lesser extent, for goods (up from €321 billion to €359 billion). These developments were partly offset by a reduction in the surplus for primary income (down from €41 billion to €16 billion) and an increase in the deficit for secondary income (up from €151 billion to €168 billion).

In direct investment, euro area residents made net investments of €57 billion in non-euro area assets in the 12-month period to April 2021, following net disinvestments of €155 billion in the 12 months to April 2020 (Chart 2 and Table 2). Non-residents net investments in euro area assets increased to €187 billion in the 12-month period to April 2021, up from €32 billion in the 12 months to April 2020.

In portfolio investment, net purchases of non-euro area debt securities by euro area residents increased to €499 billion in the 12-month period to April 2021, following net purchases of €357 billion in the 12 months to April 2020. Over the same period, euro area residents’ net purchases of non-euro area equity increased to €501 billion from €44 billion in the 12 months to April 2020. Non-residents made net sales of euro area debt securities amounting to €97 billion in the 12 months to April 2021, following net purchases of €183 billion in the 12 months to April 2020. Over the same period, non-residents’ net purchases of euro area equity increased to €257 billion from €197 billion in the 12 months to April 2020.

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 €176 billion in the 12 months to April 2021 (following net acquisitions of €582 billion in the 12 months to April 2020), while their net incurrence of liabilities decreased to €164 billion from €309 billion.

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €16 billion in the 12-month period to April 2021. This increase was driven by the current and capital accounts surplus, and the euro area non-MFIs’ net inflows in direct investment and, to a lesser extent, in other investment and other flows. These developments were partly offset by euro area non-MFIs’ net outflows in portfolio investment debt and portfolio investment equity.

In April 2021 the Eurosystem’s stock of reserve assets increased to €852.1 billion, up from €849.5 billion in the previous month (Table 3). This increase was driven by positive changes in the price of gold (€9.2 billion) and, to a lesser extent, by net acquisitions of assets (€0.7 billion), which were partly offset by negative exchange rate changes (€7.7 billion).

Data for the reserve assets of the euro area

Data revisions

This press release does not incorporate revisions to previous periods.

Next releases:

• Quarterly balance of payments and international investment position: 5 July 2021 (reference data up to the first quarter of 2021)
• Monthly balance of payments: 20 July 2021 (reference data up to May 2021)

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.