Eurozone quarterly balance of payments and international investment position: Q3 2023

January 11, 2024

• The current account balance will have a surplus of 175 billion euros (1.2% of euro area GDP) in the four quarters to the third quarter of 2023, compared to a deficit of 19 billion euros (0.1% of GDP) in the same period last year.
• Geographically corresponding country: Largest bilateral current account surplus England (170 billion euros) and Switzerland (71 billion euros), the largest deficit China (134 billion euros) America (16 billion euros)
• The international investment position showed net assets of €327 billion (2.3% of euro area GDP) at the end of Q3 2023.

Current account

of Current account of The euro area recorded a surplus of 175 billion euros (1.2% of euro area GDP) in the four quarters to the third quarter of 2023, after recording a deficit of 19 billion euros (0.1% of GDP) in the same period last year ( table 1). This development was mainly driven by the transformation from a deficit (54 billion euros) to a surplus. Goods (178 billion euros) and to a lesser extent side income (Reduced from 170 billion euros to 155 billion euros). These developments were partially offset by a decrease in retained earnings. main income (Reduced from 58 billion euros to 20 billion euros) service (Reduced from 147 billion euros to 132 billion euros).

lower surplus service This was due to a decrease in the surplus of transportation service (from 28 billion euros to 4 billion euros) and Expansion of the deficit in Other services (from 34 billion euros to 61 billion euros).recorded a larger surplus Telecommunications, computer and information services (from 148 billion euros to 158 billion euros), Insurance, pension, finance service (from 10 billion euros to 20 billion euros) and travel services (from 52 billion euros to 61 billion euros), while the deficit was Other business services decreased (from 56 billion euros to 49 billion euros).

decrease in main income The surplus was mainly due to an increase in the deficit. portfolio stock income On the other hand, a larger surplus was recorded (from 98 billion euros to 145 billion euros). direct investment income (from 62 billion euros to 69 billion euros) Reserved asset income (from 4 billion euros to 11 billion euros).

table 1

euro area current account balance

(Billions of euros, period trading, non-business days and non-seasonally adjusted, unless otherwise indicated)

Eurozone current account data

Geographically matched data for the euro area’s current account balance (Chart 1) shows that the euro area recorded its largest bilateral surplus against the euro in the four quarters ending in the third quarter of 2023. England (170 billion euros, up from 154 billion euros in the same period last year) Switzerland (increased from 59 billion euros to 71 billion euros).The eurozone also recorded a surplus of 76 billion euros against the Remain group. of other countriesThe deficit follows a deficit of 21 billion euros in the same period last year.Largest bilateral deficit recorded China (134 billion euros, down from 151 billion euros in the same period last year) America (15 billion euros following a surplus of 7 billion euros).

The most significant year-on-year changes in the geographic components of the current account balance for the four quarters ending in the third quarter of 2023 are:of Goods Deficit decreased compared to Russia (from 103 billion euros to 15 billion euros), China (from 183 billion euros to 154 billion euros) and for the rest of the group of other countries (from 159 billion euros to 69 billion euros). The latter is partly Goods These include a deficit with Norway (from 71 billion euros to 48 billion euros), a widening surplus with Turkiye (from 8 billion euros to 23 billion euros), and a decline in imports from members of the Organization of the Petroleum Exporting Countries.surplus of Goods for EU member states and EU institutions outside the euro area decreased from 65 billion euros to 29 billion euros, America From 171 billion euros to 200 billion euros.

in servicedeficit against America Although the deficit increased (from 95 billion euros to 117 billion euros) offshore center decreased (from 27 billion euros to 13 billion euros).in main income, a larger deficit was recorded America (from 70 billion euros to 98 billion euros), while side income for EU member states and EU institutions outside the euro area decreased (from 98 billion euros to 80 billion euros).

Geographic breakdown data of euro area current account balance

international investment position

At the end of the third quarter of 2023, international investment position Compared to the rest of the world, net assets in the euro area amounted to €327 billion (2.3% of euro area GDP), up from €184 billion in the previous quarter (Figure 2 and Table 2).

Eurozone net foreign investment position data

The €143 billion increase in net assets was primarily due to a decrease in net debt. Other investments (Decrease from 1.17 trillion euros to 1.03 trillion euros). Additionally, a larger net worth was recorded. portfolio debt (increasing from €1.21 trillion to €1.24 trillion), net debt was portfolio capital decreased (from 3.21 trillion euros to 3.19 trillion euros). These developments were partially offset by a decrease in net assets in 2016. direct investment (Reduced from 2.28 trillion euros to 2.25 trillion euros).