The EU28 seasonally adjusted current account of the balance of payments recorded a surplus of €40.9 billion (1.0% of GDP) in the second quarter of 2019, down from a surplus of €47.4 billion (1.2% of GDP) in the first quarter of 2019 and from a surplus of €67.6 billion (1.7% of GDP) in the second quarter of 2018, according to estimates released by Eurostat, the statistical office of the European Union.
In the second quarter of 2019 compared with the first quarter of 2019, based on seasonally adjusted data, then surplus of the goods account increased (+€32.4 bn compared to +€16.6 bn), while the surpluses of the services account (+€25.7 bn compared to +€47.3 bn) and the primary income account (+€3.5 bn compared to +€5.4 bn both fell.
The deficit of the secondary income account decreased (-€20.7 bn compared to -€21.8 bn). The deficit of the capital account grew (-€19.1 bn compared to -€9.2 bn).
In the second quarter of 2019, based on non-seasonally adjusted data, the EU28 recorded external current account surpluses with the USA (+€40.5 bn), Switzerland (+€21.5 bn), Hong Kong, Canada (both+€8.3 bn), Brazil (+€8.1bn) and India (+€0.2 bn).
Deficits were registered with offshore financial centres (-€33.0 bn), China (-€20.1 bn), Russia (-€5.8 bn) and Japan (-€2.4 bn).
Based on non-seasonally adjusted data, direct investment assets of the EU28 decreased in the second quarter of 2019 by €56.7 bn, while direct investment liabilities increased by €113.2 bn.
As a result, the EU28 was a net recipient of direct investment in the second quarter of 2019 by €169.9 bn. Portfolio investment recorded a net inflow of €20.6 bn, while for other investment there was a net outflow of €190.2 bn.
As concerns the total (intra-EU plus extra-EU) current account balances of the EU28 Member States, based on available non-seasonally adjusted data, thirteen recorded surpluses, fourteen deficits and one was in balance in the second quarter of 2019.
The highest surpluses were observed in Germany (+€59.9 bn), Italy (+€14.9 bn), the Netherlands (+€13.6 bn), Spain (+€10.9 bn) and Denmark (+€7.2 bn), and the largest deficits in the United Kingdom (-€27.0 bn), Ireland (-€26.5 bn), France (-€3.9 bn) and Finland (-€3.6 bn). ■
A Fall heatwave will continue into the weekend over portions of the Desert Southwest and central/southern California as a persistent trend of upper-ridging over the region remains in place.