The seasonally adjusted current account of the euro area recorded a deficit of EUR 5.1 billion in April 2011. This reflected deficits for current transfers (EUR 7.3 billion) and goods (EUR 4.1 billion), which were partially offset by surpluses for income (EUR 3.6 billion) and services (EUR 2.7 billion).
The 12-month cumulated seasonally adjusted current account recorded a deficit of EUR 52.3 billion in April 2011 (around 0.6% of euro area GDP), compared with a deficit of EUR 12.4 billion a year earlier. This increase resulted mainly from a decrease in the surplus for goods (from EUR 44.6 billion to EUR 1.9 billion) and, to a lesser extent, from a shift for the income account from a surplus (EUR 3.6 billion) to a deficit (EUR 2.7 billion), which were partly offset by an increase in the surplus for services (from EUR 35.4 billion to EUR 42.7 billion) and a decrease in the deficit for current transfers (from EUR 96.1 billion to EUR 94.2 billion).
Financial account
In the financial account, combined direct and portfolio investment recorded net inflows of EUR 21 billion in April 2011. This was due to net inflows for portfolio investment (EUR 48 billion), which were partly offset by net outflows for direct investment (EUR 27 billion).
The net outflows for direct investment resulted mainly from net outflows for equity capital and reinvested earnings (EUR 30 billion).
The net inflows for portfolio investment were accounted for primarily by net inflows for debt instruments (EUR 90 billion), which were partially offset by net outflows for equity (EUR 42 billion). The net inflows for debt instruments resulted mainly from net purchases by foreign investors of euro area long-term debt securities such as bonds and notes (EUR 72 billion).
The financial derivatives account was close to balance.
Other investment recorded net outflows of EUR 22 billion, reflecting net outflows for other sectors (EUR 22 billion), the Eurosystem (EUR 5 billion) and general government (EUR 3 billion), which were partly offset by net inflows for MFIs excluding the Eurosystem (EUR 8 billion).
The Eurosystem’s stock of reserve assets decreased from EUR 577 billion to EUR 572 billion in April 2011, mainly on account of net transactions (EUR 6 billion).
In the 12-month period to April 2011, combined direct and portfolio investment recorded cumulated net inflows of EUR 221 billion, compared with net inflows of EUR 169 billion in the preceding 12-month period. This increase was mainly the result of lower net outflows for direct investment (down from EUR 101 billion to EUR 63 billion) and higher net inflows for portfolio investment (up from EUR 270 billion to EUR 284 billion). The lower net outflows for direct investment mainly reflected lower net outflows for other capital (mostly inter-company loans).
