Euro Area’s Current Account Surplus rises to 2.9% of GDP in the Second Quarter

Source: ECB

The current account surplus in the euro area was 337 billion euros in the second quarter of 2021, a 2.9% of GDP, up from 200 billion euros or 1.7% of GDP in the prior year. DAX is down -0.26%, EURUSD is up +0.30%.

• The increase in the euro area’s current account surplus reflected a shift of services balance from a negative value of 23 billion euros, to a surplus of 79 billion euros. Goods surplus also improved from a positive of 305 billion euros to a higher 385 billion euros.
• Primary income dragged the current account surplus after falling from 71 billion euros to 42 billion euros. The secondary income deficit also increased from 153 billion euros to 169 billion euros.
• Overall international investment position in the euro area reflected a decline in net liabilities to 576 billion euros or 4.9% of GDP, from 649 billion euros in the previous quarter. 
• By geographical region, the UK led the euro area in bilateral current account surpluses at 176 billion euros, followed by the US at 74 billion euros. The largest current account deficit was by China at 66 billion euros.