The seasonally adjusted current account of the euro area recorded a deficit of EUR 4.6 billion in June 2010 (see Table 1). This reflected deficits in current transfers (EUR 7.8 billion) and income (EUR 1.6 billion), which were partly offset by surpluses in goods (EUR 2.6 billion) and services (EUR 2.2 billion).
The 12-month cumulated seasonally adjusted current account recorded a deficit of EUR 45.1 billion in June 2010 (around 0.5% of euro area GDP), compared with a deficit of EUR 147.9 billion a year earlier. The reduction in the current account deficit was due to a shift in goods from deficit (EUR 10.2 billion) to surplus (EUR 45.2 billion), an increase in the surplus in services (from EUR 29.7 billion to EUR 35.6 billion), and to decreases in the deficits in income (from EUR 70.2 billion to EUR 34.5 billion) and current transfers (from EUR 97.2 billion to EUR 91.3 billion).
Financial account
In the financial account, combined direct and portfolio investment recorded net outflows of EUR 4 billion in June 2010, as the net outflows in direct investment (EUR 7 billion) exceeded the net inflows in portfolio investment (EUR 3 billion).
The net outflows in direct investment resulted predominantly from net outflows in other capital (mostly inter-company loans) (EUR 11 billion).
Portfolio investment recorded net inflows in equity (EUR 16 billion), mainly reflecting net purchases of euro area equity by non-residents (EUR 19 billion), which were to a large extent offset by net outflows in debt instruments (EUR 13 billion).
Financial derivatives recorded net inflows of EUR 1 billion.
Other investment recorded net inflows of EUR 1 billion, reflecting net inflows in other sectors (EUR 18 billion) which were almost totally offset by net outflows in the Eurosystem (EUR 12 billion), and in MFIs excluding the Eurosystem (EUR 6 billion). The general government account was close to balance.
The Eurosystem’s stock of reserve assets was EUR 583 billion at the end of June 2010. Transactions in June 2010 contributed to a decrease of EUR 1 billion in the overall position.
In the 12-month period to June 2010, combined direct and portfolio investment recorded cumulated net inflows of EUR 174 billion, compared with net inflows of EUR 285 billion in the preceding 12-month period. This decrease was the result of lower net inflows in portfolio investment (down from EUR 443 billion to EUR 254 billion), which were partly offset by lower net outflows in direct investment (down from EUR 159 billion to EUR 81 billion). The decrease in net inflows in portfolio investment was due mainly to lower net inflows in debt instruments (down from EUR 487 billion to EUR 209 billion) that were partly counterbalanced by a shift from net outflows (EUR 44 billion) to net inflows (EUR 45 billion) in equity.
