European Central Bank reports euro area current account surplus widens to EUR 403 billion and net external assets rise to EUR 1.11 trillion

The European Central Bank published euro area balance of payments and international investment position statistics showing a current account surplus of EUR 403 billion (2.7% of GDP) in the four quarters to the third quarter of 2024, up from EUR 191 billion (1.3% of GDP) a year earlier. Over the same period, the largest bilateral current account surpluses were recorded vis-à-vis the United Kingdom (EUR 210 billion) and Switzerland (EUR 79 billion), while the largest deficit was vis-à-vis China (EUR 90 billion); the balance vis-à-vis the United States shifted from a EUR 31 billion deficit to a EUR 7 billion surplus. The wider current account surplus was mainly driven by a higher goods surplus (EUR 365 billion from EUR 186 billion), largely reflecting a smaller deficit in energy products (EUR 267 billion from EUR 366 billion), alongside a larger surplus in machinery and manufactured products (EUR 306 billion from EUR 259 billion). Services and primary income surpluses also increased to EUR 153 billion (from EUR 138 billion) and EUR 44 billion (from EUR 31 billion) respectively, while the secondary income deficit narrowed slightly to EUR 159 billion (from EUR 163 billion). At end of the third quarter of 2024, the euro area’s net international investment position stood at EUR 1.11 trillion (7.4% of GDP), up from EUR 0.97 trillion in the previous quarter, mainly reflecting lower net liabilities in other investment and higher reserve assets and portfolio debt; gross external debt was EUR 16.69 trillion (111% of GDP). The release incorporates revisions for reference periods from the first quarter of 2021 to the second quarter of 2024, and the next publications are scheduled for 17 January 2025 (monthly balance of payments, up to November 2024) and 4 April 2025 (quarterly balance of payments and international investment position, up to the fourth quarter of 2024).