Insider Economy EU28 current account records €40.9 b surplus in Q2, €-0.2b deficit in...

EU28 current account records €40.9 b surplus in Q2, €-0.2b deficit in Cyprus

The EU28 seasonally adjusted current account of the balance of payments recorded a surplus of €40.9 billion (1.0% of GDP) in the second quarter of 2019, down from a surplus of €47.4 billion (1.2% of GDP) in the first quarter of 2019 and from a surplus of €67.6 billion (1.7% of GDP) in the second quarter of 2018, according to estimates released by Eurostat, the statistical office of the European Union.

In the second quarter of 2019 compared with the first quarter of 2019, based on seasonally adjusted data, the surplus of the goods account increased (+€32.4 b compared to +€16.6 b), while the surpluses of the services account (+€25.7 b compared to +€47.3 b) and the primary income account (+€3.5 b compared to +€5.4 b) both fell. The deficit of the secondary income account decreased (-€20.7 b compared to -€21.8 b). The deficit of the capital account grew (-€19.1 b compared to -€9.2 b).

In the second quarter of 2019, based on non-seasonally adjusted data, the EU28 recorded external current account surpluses with the USA (+€40.5 b), Switzerland (+€21.5 b), Hong Kong, Canada (both+€8.3 b), Brazil (+€8.1 b) and India (+€0.2 b). Deficits were registered with offshore financial centres (-€33.0 b), China (-€20.1 b), Russia (-€5.8 b) and Japan (-€2.4 b).

Based on non-seasonally adjusted data, direct investment assets of the EU28 decreased in the second quarter of 2019 by €56.7 b, while direct investment liabilities increased by €113.2 b. As a result, the EU28 was a net recipient of direct investment in the second quarter of 2019 by €169.9 b. Portfolio investment recorded a net inflow of €20.6 b while for other investment there was a net outflow of €190.2 b.

For Cyprus the current account and trade in services balances stood at €-0.2 billion in the second quarter of 2019, down form  €-0.6 billion in the first quarter and up from  €-0.1 billion in the second quarter of 2018. The trade of services balance was €1.4 billion up from €0.5 billion in the first quarter at same level as in the second quarter of 2018 ( €1.4 billion).

Meanwhile the household saving rate in the euro area was 13.3% in the second quarter of 2019, compared with 13.0% in the first quarter of 2019. The household investment rate in the euro area was 9.0% in the second quarter of 2019, compared with 9.2% the previous quarter.

(Cyprus News Agency)

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