The EU27 seasonally adjusted current account of the balance of payments recorded a surplus of €90.9 billion (2.6% of GDP) in the fourth quarter of 2019, before coronavirus containment measures began to be widely introduced by Member States, down from a surplus of €112.1 billion (3.2% of GDP) in the third quarter of 2019 and from a surplus of €93.4 billion (2.7% of GDP) in the fourth quarter of 2018, according to estimates released by Eurostat.
In the fourth quarter of 2019 compared with the third quarter of 2019, based on seasonally adjusted data, the surplus of the goods account increased (+€83.4 bn compared to +€79.1 bn), while the surplus of the services account dropped (+€12.1 bn compared to +€35.3 bn).
Surplus of the primary income account fell (+€10.8 bn compared to +€11.8 bn), while the deficit of the secondary income account grew (-€15.5 bn compared to -€14.1 bn). The deficit of the capital account increased (-€8.6 bn compared to -€2.5 bn).
Main partners
In the fourth quarter of 2019, based on non-seasonally adjusted data, the EU27 recorded external current account surpluses with the USA (+€40.7 bn), Switzerland (+€19.7 bn), the United Kingdom (+€19.6 bn), Brazil (+€9.7 bn), Canada (+€8.5 bn), Hong Kong (+€4.3 bn), Japan (+€2.2 bn) and India (+€1.0 bn). Deficits were registered with China (-€19.7 bn), offshore financial centres (-€12.0 bn) and Russia (-€2.0 bn).
Financial account
Based on non-seasonally adjusted data, direct investment assets of the EU27 decreased in the fourth quarter of 2019 by €62.2 bn, while direct investment liabilities fell by €229.2 bn. As a result, the EU27 was a net direct investor to rest of the world in the fourth quarter of 2019 by €167.1 bn. Portfolio investment recorded a net outflow of €123.2 bn, while for other investment there was a net inflow of €27.4 bn.
Current account of Member States (including intra-EU flows)
As concerns the total (intra-EU plus extra-EU) current account balances of the EU27 Member States, based on available non-seasonally adjusted data, fifteen recorded surpluses, ten deficits and two were in balance in the fourth quarter of 2019.
The highest surpluses were observed in Germany (+€68.6 bn), the Netherlands (+€30.6
bn), Italy (+€19.7 bn), France (+€8.5 bn) and Spain (+€8.1 bn), and the largest deficits in Ireland (-€28.4 bn), Greece (-€2.6 bn) and Romania (-€2.2 bn).
The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.
The euro area (EA19) includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland. ■