According to the latest revisions, the EU27 external current account recorded a deficit of 57.3 billion euro in the fourth quarter of 2008, compared with a deficit of 21.6 bn in the fourth quarter of 2007 and a deficit of 67.4 bn in the third quarter of 2008.

In the fourth quarter of 2008, compared with the fourth quarter of 2007, the deficits of the goods account (-43.3 bn euro compared with -42.6 bn) and the current transfers account (-16.7 bn compared with -16.6 bn) remained nearly stable. The surplus of the services account fell (+17.1 bn compared with +21.4 bn) and the surplus of the income account turned into a deficit (-14.3 bn compared with +16.3 bn).

The surplus recorded in the services account (+17.1 bn euro) is mainly the result of surpluses in financial services (+7.1 bn), "other business services", which includes miscellaneous business, professional and technical services (+6.7 bn), transportation (+6.1 bn) and computer & information services (+4.2 bn), partially offset by deficits in travel (-5.2 bn) and royalties & license fees (-3.4 bn).

In the fourth quarter of 2008, the EU27 external current account recorded a surplus with Switzerland (+8.6 bn euro), the USA (+7.9 bn), Canada (+1.9 bn) and Brazil (+1.5 bn), and a deficit with China (-44.1 bn), Japan (-8.8 bn) and Russia (-6.0 bn).

Financial Account

In the fourth quarter of 2008, the EU27 made direct investment abroad of 23.9 bn euro, compared with 171.9 bn in the fourth quarter of 2007, while foreign direct investors disinvested in the EU27 by 34.4 bn, compared with investment of 140.0 bn in the same quarter of 2007.

In the fourth quarter of 2008, portfolio investment recorded a net inflow of 370.1 bn compared with a net inflow of 8.3 bn in the fourth quarter of 2007. Other investment, which includes currency and deposits, loans, trade credits, recorded a net outflow of 401.3 bn, compared with a net outflow of 37.4 bn in the same quarter of 2007.