FX.co ★ Eurozone Current Account Surplus Increases In September

The European Central Bank reported on Tuesday that the euro area's current account surplus expanded in September, largely due to a recovery in primary income. The surplus reached EUR 37 billion, climbing from EUR 35 billion in August, contrary to expectations of a decrease to EUR 27.0 billion. Primary income showed a substantial improvement, rising to EUR 2 billion from a deficit of EUR 3 billion previously. Meanwhile, the deficit in secondary income improved slightly, narrowing to EUR 14 billion from EUR 15 billion.

However, the surplus in the goods trade saw a slight decline, dropping to EUR 33 billion from EUR 34 billion. Similarly, the surplus in services decreased to EUR 16 billion from EUR 19 billion.

Over the 12-month period leading up to September, the current account surplus was EUR 425 billion, representing 2.8% of GDP, a significant increase from EUR 182 billion or 1.3% of GDP recorded the previous year.

In terms of the financial account, euro area residents made net acquisitions of non-euro area portfolio investment securities totaling EUR 551 billion, while non-residents' net purchases of euro area portfolio investment securities amounted to EUR 686 billion during the same period.