Euro area monthly balance of payments: January 2020

• In January 2020 the current account of the euro area recorded a surplus of €35 billion, compared with a surplus of €33 billion in December 2019.
• In the 12-month period to January 2020, the current account recorded a surplus of €364 billion (3.1% of euro area GDP), compared with a surplus of €359 billion (also 3.1% of euro area GDP) in the 12 months to January 2019.
• In the financial accounteuro area residents made net acquisitions of foreign portfolio investment securities totalling €393 billion in the 12-month period to January 2020 (up from €138 billion in the 12 months to January 2019). Over the same period, non-residents made net acquisitions of euro area portfolio investment securities amounting to €419 billion (in comparison with net sales of €45 billion).

The current account of the euro area recorded a surplus of €35 billion in January 2020, increasing by €2 billion from the previous month (see Chart 1 and Table 1). Surpluses were recorded for goods (€27 billion), primary income (€14 billion) and services (€10 billion). These were partly offset by a deficit for secondary income (€17 billion).

Data for the current account of the euro area

In the 12 months to January 2020, the current account recorded a surplus of €364 billion (3.1% of euro area GDP), compared with a surplus of €359 billion (also 3.1% of euro area GDP) in the 12 months to January 2019. This increase reflected a larger surplus for goods (up from €295 billion to €340 billion), which was largely offset by reductions in the surpluses for primary income (down from €106 billion to €84 billion) and services (down from €113 billion to €95 billion). The deficit for secondary income remained stable at €155 billion.

In direct investment, euro area residents made net investments of €31 billion in non-euro area assets in the 12-month period to January 2020, following net disinvestments of €215 billion in the 12 months to January 2019 (see Chart 2 and Table 2). At the same time, non-residents made net investments in euro area assets of €56 billion in the 12-month period to January 2020, following net disinvestments of €264 billion in the 12 months to January 2019.

In portfolio investment, net purchases of foreign debt securities by euro area residents increased to €334 billion in the 12-month period to January 2020, following net purchases of €136 billion in the 12 months to January 2019. Over the same period, euro area residents made net purchases of foreign equity amounting to €59 billion, after net purchases of €1 billion in the 12 months to January 2019. Non-residents made net purchases of euro area debt securities of €136 billion in the 12 months to January 2020, after recording net sales of €124 billion in the 12 months to January 2019. Over the same period, non-residents’ net purchases of euro area equity increased to €283 billion from €79 billion.

Data for the financial account of the euro area

In other investment, euro area residents’ net acquisitions of foreign assets increased to €283 billion in the 12 months to January 2020 (following net acquisitions of €242 billion in the 12 months to January 2019), while non-euro area residents recorded net disposals of €49 billion in euro area assets, following net acquisitions of €270 billion.

The monetary presentation of the balance of payments (see Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €333 billion in the 12-month period to January 2020. This increase was mainly driven by a current and capital accounts surplus and, to a lesser extent, by euro area non-MFIs’ net inflows in portfolio investment equity. This increase was partly offset by euro area non-MFIs’ net outflows in portfolio investment debt securities.

In January 2020 the Eurosystem’s stock of reserve assets increased to €846.8 billion, up from €813.6 billion in the previous month (see Table 3). This increase was mostly driven by positive price changes (€27.8 billion) and to a lesser extent by positive exchange rate changes (€4.3 billion) and net acquisitions of assets (€1.0 billion).

Data for the reserve assets of the euro area

Data revisions

This press release does not incorporate revisions to previous periods.

Next press releases:

• quarterly balance of payments and international investment position: 7 April 2020 (reference data up to the fourth quarter of 2019)
• monthly balance of payments: 20 April 2020 (reference data up to February 2020)

For media queries, please contact Philippe Rispal, tel.: +49 69 1344 5482.

Notes

• Hyperlinks in this press release lead to data that may change with subsequent releases as a result of revisions.