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Current account deficit at €0.2bn

05/10/2020 14:50

In the second quarter of 2020,  EU seasonally adjusted current account of the balance of payments recorded a surplus of €82.9 billion (2.7% of GDP), up from a surplus of €52.9 billion (1.5% of GDP) in the first quarter of 2020 and from a surplus of €72.7 billion (2.1% of GDP) in the second quarter of 2019, according to estimates released by Eurostat, the statistical office of the European Union.

In the second quarter of 2020 compared with the first quarter of 2020, based on seasonally adjusted data, the surplus of the goods account decreased (+€48.9 bn compared to +€83.5 bn). The deficit of the services account moved to surplus (+€24.8 bn compared to -€5.8 bn), as did the deficit of the primary income account (+€24.8 bn compared to -€10.1 bn), while the deficit of the secondary income account grew (-€15.5 bn compared to -€14.7 bn). The deficit of the capital account increased (-€8.6 bn compared to -€4.1 bn).

In the second quarter of 2020, based on non-seasonally adjusted data, the EU recorded external current account surpluses with the United Kingdom (+€35.6 bn), the USA (+€15.8 bn), Switzerland (+€15.5 bn), Russia (+€6.7 bn), Canada (+€6.2 bn), Hong Kong (+€4.4 bn) and Brazil (+€3.5 bn). Deficits were registered with China (-€29.0 bn), offshore financial centres (-€9.5 bn), Japan (-€0.5 bn) and India (-€0.2 bn).

Based on non-seasonally adjusted data, direct investment assets of the EU increased in the second quarter of 2020 by €27.6 bn, while direct investment liabilities grew by €176.0 bn. As a result, the EU was a net recipient of direct investment from rest of the world in the second quarter of 2020 by €148.3 bn. Portfolio investment recorded a net outflow of €159.9 bn, while for other investment there was a net inflow of €181.5 bn.

As concerns the total (intra-EU plus extra-EU) current account balances of the EU Member States, based on available non-seasonally adjusted data, fifteen recorded surpluses, ten deficits and two were in balance in the first quarter of 2020. The highest surpluses were observed in Germany (+€36.3 bn), the Netherlands (+€12.6 bn), Ireland (+€11.7 bn), Poland (+€6.6 bn), Denmark and Sweden (both +€5.9 bn), and the largest deficits in France (-€14.3 bn), Greece (-€3.5 bn) and Romania (-€3.0 bn).

Finally in Cyprus, the current account balance was -€0.2bn for Q2 2020, up from -€0.7bn in Q1 2020 and -€0.3bn in Q2 2019. The
trade in services balance was €0.7 bn in Q2 2020, up from €0.5bn in Q1 2020 and down from €1.3bn in Q2 2019.

In Greece, the current account balance was €1.4bn for Q2 2020, up from -€0.8bn in Q1 2020 and down from €11bn in Q2 2019. The trade in services balance was €3.6bn in Q2 2020, down from €8.9bn in Q1 2020 and down €18.4bn in Q2 2019.