The working day and seasonally adjusted current account of the euro area recorded a deficit of EUR 1.2 billion in May 2009 (corresponding to a deficit of EUR 13.0 billion in non-adjusted terms). This reflected a deficit in current transfers (EUR 7.9 billion), which was partly offset by surpluses in goods (EUR 2.9 billion), services (EUR 2.2 billion) and income (EUR 1.6 billion).
The 12-month cumulated, working day-adjusted current account up to May 2009 recorded a deficit of EUR 125.1 billion (about 1.4% of euro area GDP), compared with a deficit of EUR 21.7 billion a year earlier. This change was due to a shift in the goods account from a surplus (EUR 32.4 billion) to a deficit (EUR 12.5 billion), increases in the deficits in income (from EUR 12.3 billion to EUR 42.8 billion) and current transfers (from EUR 93.8 billion to EUR 101.0 billion), and a decrease in the surplus in services (from EUR 51.9 billion to EUR 31.1 billion).
Financial account
In the non-seasonally adjusted financial account, combined direct and portfolio investment showed net inflows in May 2009 (EUR 60 billion), both in portfolio investment (EUR 54 billion) and in direct investment (EUR 6 billion).
The net inflows in direct investment resulted from net inflows in other capital (mostly inter-company loans) (EUR 8 billion) , which were partly offset by net outflows in equity capital and reinvested earnings (EUR 2 billion).
Portfolio investment recorded net inflows in both debt instruments (EUR 46 billion) and equity (EUR 8 billion). The developments in debt instruments largely reflected net purchases of euro area bonds and notes by non-residents.
Financial derivatives recorded net inflows of EUR 10 billion.
Other investment recorded net outflows of EUR 43 billion, mainly as a result of net outflows for the Eurosystem (EUR 20 billion) and other sectors (EUR 17 billion).
Reserve assets increased by EUR 2 billion (excluding valuation effects). The stock of the Eurosystem’s reserve assets stood at EUR 423 billion at the end of May 2009.
In the 12-month period to May 2009, combined direct and portfolio investment showed cumulated net inflows of EUR 418 billion, compared with net outflows of EUR 18 billion a year earlier. This shift mainly resulted from a rise in net inflows of portfolio investment (from EUR 130 billion to EUR 594 billion), largely reflecting a shift from net outflows to net inflows in money market instruments. The rise in net inflows of portfolio investment was to a limited extent offset by higher net outflows of direct investment (up from EUR 148 billion to EUR 176 billion).
