Euro area monthly balance of payments: October 2021

20 December 2021

• Current account recorded €18 billion surplus in October 2021, unchanged from previous month
• Current account surplus amounted to €311 billion (2.6% of euro area GDP) in 12 months to October 2021, up from €186 billion (1.6%) one year earlier
• In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €937 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €140 billion in 12 months to October 2021

The current account of the euro area recorded a surplus of €18 billion in October 2021, unchanged from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€16 billion) and services (€16 billion). These were partly offset by a deficit for secondary income (€15 billion), while the primary income was balanced.

Data for the current account of the euro area

In the 12 months to October 2021, the current account recorded a surplus of €311 billion (2.6% of euro area GDP), compared with a surplus of €186 billion (1.6% of euro area GDP) in the 12 months to October 2020. This increase was mainly driven by a switch in the services balance from a deficit of €28 billion to a surplus of €98 billion and also by larger surpluses for primary income (up from €35 billion to €53 billion) and goods (up from €327 billion to €331 billion). These developments were partly offset by a larger deficit for secondary income (up from €148 billion to €170 billion).

In direct investment, euro area residents made net investments of €22 billion in non-euro area assets in the 12-month period to October 2021, following net disinvestments of €75 billion in the 12 months to October 2020 (Chart 2 and Table 2). Non-residents disinvested €30 billion in net terms from euro area assets in the 12-month period to October 2021, following net acquisitions of €58 billion in the 12 months to October 2020.

In portfolio investment, euro area residents’ net purchases of non-euro area equity increased to €487 billion in the 12 months to October 2021, up from €215 billion in the 12 months to October 2020. Over the same period, net purchases of non-euro area debt securities by euro area residents increased to €450 billion, up from €278 billion in the 12 months to October 2020. Non-residents’ net purchases of euro area equity increased to €383 billion in the 12 months to October 2021, up from €153 billion in the 12 months to October 2020. Over the same period non-residents made net sales of euro area debt securities amounting to €243 billion, following net purchases of €186 billion in the 12 months to October 2020.

Data for the financial account of the euro area

In other investment, euro area residents’ net acquisitions of non-euro area assets amounted to €173 billion in the 12 months to October 2021 (down from €180 billion in the 12 months to October 2020), while their net incurrence of liabilities increased to €811 billion (up from €71 billion in the 12 months to October 2020).

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €169 billion in the 12-month period to October 2021. This decrease was mainly driven by euro area non-MFIs’ net outflows in portfolio investment debt and, to a lesser extent, in direct investment and portfolio investment equity. These developments were partly offset by the current and capital accounts surplus and by euro area non-MFIs’ net inflows in other investments and other flows.

In October 2021 the Eurosystem’s stock of reserve assets increased to €1,019.3 billion, up from €1,002.4 billion in the previous month (Table 3). This increase was mainly driven by positive price changes (€14.7 billion, of which €15.2 billion was due to monetary gold) and, to a lesser extent, by net acquisitions of assets (€3.2 billion), which were only partly offset by negative exchange rate changes (€1.2 billion).

Data for the reserve assets of the euro area

Data revisions

This press release includes revisions to the seasonally adjusted current account components from January 2008 onwards owing to the incorporation of newly estimated seasonal and calendar factors. These revisions did not significantly alter the overall pattern of figures previously published

Next releases:

• Quarterly balance of payments and international investment position: 11 January 2022 (reference data up to the third quarter of 2021)
• Monthly balance of payments: 19 January 2022 (reference data up to November 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.