According to the latest revisions, the EU27 external current account recorded a deficit of 2.8 billion euro in the fourth quarter of 2007, compared with a deficit of 13.4 bn in the fourth quarter of 2006 and a deficit of 21.2 bn in the third quarter of 2007.

In the fourth quarter of 2007, compared with the fourth quarter of 2006, a higher deficit was recorded in the goods account (-40.7 bn euro compared with -31.0 bn), while the surplus of the services account increased (+21.4 bn compared with +17.7 bn). The surplus of the income account nearly doubled (+32.8 bn compared with +16.5 bn) mainly due to the UK income account, which recorded a significant surplus after being in deficit for several quarters. The deficit of the current transfers account remained stable (-16.3 bn compared with -16.6 bn).

The surplus recorded in the services account (+21.4 bn euro) is mainly the result of surpluses in "other business services" (+11.3 bn), financial services (+8.8 bn), transportation (+3.9 bn) and computer & information services (+3.5 bn), partially offset by deficits in travel (-5.1 bn) and royalties and license fees (-3.4 bn).

In the fourth quarter of 2007, the EU27 external current account recorded a surplus with the USA (+33.6 bn euro), Switzerland (+9.2 bn), Canada (+4.9 bn), Hong Kong and India (both +2.2 bn), and a deficit with China (-38.6 bn), Russia (-8.7 bn) and Japan (-6.2 bn).

Preliminary annual results for 2007, compared with 2006, show a decrease in the EU27 external current account deficit (-72.4 bn euro compared with -82.9 bn), mainly due to a fall in the goods account deficit (-153.4 bn compared with -164.2 bn) and a higher surplus in the services account (+88.4 bn compared with +69.5 bn), which were partially offset by a deterioration in the income account (+49.9 bn compared with +66.9 bn) and, to a lesser extent, in the current transfers account (-57.4 bn compared with -55.1 bn).