Balance of payments and international investment position
Balance of payments
The euro area balance of payments summarises all the transactions between euro area residents and non-residents, on a monthly and quarterly basis. Transactions between euro area residents are excluded.
The balance of payments consists of:
- the goods and services account
- primary and secondary income accounts
- the capital account
- the financial account
The different accounts within the balance of payments are distinguished according to the nature of the economic resources (e.g. goods, services, income or financial resources) provided and received.
The balance of payments is based on a double-entry accounting system. Each transaction is recorded as consisting of two entries – a credit entry and a debit entry. The sum of the credit entries and the sum of the debit entries are the same.
International investment position
The euro area international investment position shows the outstanding amount and composition of:
- euro area residents’ financial claims on non-residents
- euro area residents’ financial liabilities to non-residents
The difference between the assets and liabilities is the net international investment position and represents either a net claim on, or a net liability to, non-euro area residents.
Other changes in financial assets and liabilities account
The other changes in financial assets and liabilities account records the changes in positions due to economic events other than transactions. It allows for a full reconciliation of the changes in the international investment position broken down into transactions, revaluations (price and exchange rate changes) and other volume changes.
Selected features
Seasonal adjustment
Within the balance of payments, the current account components are seasonally adjusted on a monthly basis. Where appropriate, these data are also adjusted for working day effects, as well as for the impact of leap years and Easter.
Monetary presentation
The monetary presentation of the balance of payments is a tool for assessing the impact of balance of payments transactions involving euro area non-monetary financial institutions (non-MFIs) on monetary developments.
The principle underlying this presentation is the link between the external counterpart of money (M3), as reflected in the balance sheet of the MFI sector, and the transactions of the MFI sector included in the balance of payments.
Data within the Statistical Data Warehouse
- Summary data
- Current and capital accounts, including geographical breakdown and seasonally adjusted data
- Financial account and international investment position, including other changes in financial assets and liabilities and geographical breakdown
- Monetary presentation of the balance of payments
- All b.o.p. and i.i.p. time series
Sources and methods
The concepts and definitions used are in line with international statistical standards.
- European Union Balance of Payments and International Investment Position statistical sources and methods - “B.o.p. and i.i.p. book”, November 2016
- IMF’s Balance of Payments and International Investment Position Manual, sixth edition (BPM6)
Additional methodological information:
- Estimation of euro currency in circulation outside the euro area, April 2017
- Estimation of euro area balance of payments and international investment positions: extending the BPM6 series, April 2017
- Euro area balance of payments and international investment position compilation: enhanced compilation method, April 2017
Reports
The Quality Report on euro area and national balance of payments and international investment position statistics is published every year starting with this edition. The report focuses on the collection, compilation and dissemination of the statistics
The international role of the euro report is published annually and reviews the use of the euro in global markets and by residents of countries outside the euro area. The statistical annex includes payment transactions for goods and services and financial market transactions with euro area residents or with other non-residents.