Euro area monthly balance of payments: June 2021

19 August 2021

• Current account recorded €22 billion surplus in June 2021, up from €14 billion in previous month
• Current account surplus amounted to €316 billion (2.8% of euro area GDP) in 12 months to June 2021, up from €235 billion (2.0%) one year earlier
• In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €953 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €54 billion in 12 months to June 2021

The current account of the euro area recorded a surplus of €22 billion in June 2021, an increase of €8 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€22 billion), services (€11 billion) and primary income (€3 billion). These were partly offset by a deficit for secondary income (€14 billion).

Data for the current account of the euro area

In the 12 months to June 2021, the current account recorded a surplus of €316 billion (2.8% of euro area GDP), compared with a surplus of €235 billion (2.0% of euro area GDP) in the 12 months to June 2020. This increase was driven by larger surpluses for goods (up from €309 billion to €372 billion) and for services (up from €44 billion to €83 billion). These developments were partly offset by a reduction in the surplus for primary income (down from €38 billion to €31 billion) and by a larger deficit for secondary income (up from €155 billion to €170 billion).

In direct investment, euro area residents made net disinvestments of €4 billion in non-euro area assets in the 12-month period to June 2021, down from balanced net investments in the 12 months to June 2020. Non-residents’ net investments in euro area assets decreased to €57 billion in the 12-month period to June 2021, down from €190 billion in the 12 months to June 2020 (Chart 2 and Table 2).

In portfolio investment, net purchases of non-euro area debt securities by euro area residents decreased to €407 billion in the 12-month period to June 2021, down from €436 billion in the 12 months to June 2020. Over the same period, euro area residents’ net purchases of non-euro area equity increased to €545 billion, up from €116 billion in the 12 months to June 2020. Non-residents made net sales of euro area debt securities amounting to €216 billion in the 12 months to June 2021, following net purchases of €230 billion in the 12 months to June 2020. Over the same period, non-residents’ net purchases of euro area equity increased to €270 billion, up from €232 billion in the 12 months to June 2020.

Data for the financial account of the euro area

In other investment, euro area residents recorded net acquisitions of non-euro area assets amounting to €18 billion in the 12 months to June 2021 (following net acquisitions of €208 billion in the 12 months to June 2020), while their net incurrence of liabilities was €429 billion (following net disposals of €9 billion in the 12 months to June 2020).

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €36 billion in the 12-month period to June 2021. This decrease was driven by euro area non-MFIs’ net outflows in portfolio investment debt and portfolio investment equity. These developments were mainly offset by the current and capital accounts surplus and, to a lesser extent, by the euro area non-MFIs’ net inflows in direct investment, other investment and other flows.

In June 2021 the Eurosystem’s stock of reserve assets decreased to €869.0 billion, down from €885.5 billion in the previous month (Table 3). This decrease was mainly driven by negative changes in the price of gold (€27.8 billion) that was only partly offset by positive exchange rate changes (€6.4 billion) and by net acquisitions of assets (€5.3 billion).

Data for the reserve assets of the euro area

Data revisions

This press release incorporates revisions to the data for April and May 2021. These revisions did not significantly alter the figures previously published.

Next releases:

• Monthly balance of payments: 17 September 2021 (reference data up to July 2021)
• Quarterly balance of payments and international investment position: 4 October 2021 (reference data up to the second quarter of 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.