Euro area monthly balance of payments: November 2021

19 January 2022

• Current account recorded €24 billion surplus in November 2021, up from €19 billion in previous month
• Current account surplus amounted to €320 billion (2.7% of euro area GDP) in 12 months to November 2021, up from €195 billion (1.7%) one year earlier
• In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €878 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €165 billion in 12 months to November 2021

The current account of the euro area recorded a surplus of €24 billion in November 2021, an increase of €5 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for services (€23 billion) and goods (€16 billion). These were partly offset by a deficit for secondary income (€15 billion), while primary income was balanced.

Data for the current account of the euro area

In the 12 months to November 2021, the current account recorded a surplus of €320 billion (2.7% of euro area GDP), compared with a surplus of €195 billion (1.7% of euro area GDP) in the 12 months to November 2020. This increase was mainly driven by a shift in the services balance from a deficit of €12 billion to a surplus of €113 billion and, to a lesser extent, by a larger surplus for primary income (up from €33 billion to €51 billion). These developments were partly offset by a smaller surplus for goods (down from €332 billion to €321 billion) and a larger deficit for secondary income (up from €158 billion to €165 billion).

In direct investment, euro area residents made net investments of €53 billion in non-euro area assets in the 12-month period to November 2021, following net disinvestments of €45 billion in the 12 months to November 2020 (Chart 2 and Table 2). Non-residents disinvested €100 billion in net terms from euro area assets in the 12-month period to November 2021, following net acquisitions of €81 billion in the 12 months to November 2020.

In portfolio investment, euro area residents’ net purchases of non-euro area equity increased to €405 billion in the 12-month period to November 2021, up from €257 billion in the 12 months to November 2020. Over the same period, net purchases of non-euro area debt securities by euro area residents increased to €473 billion, up from €283 billion in the 12 months to November 2020. Non-residents’ net purchases of euro area equity increased to €447 billion in the 12-month period to November 2021, up from €111 billion in the 12 months to November 2020. Over the same period, non-residents made net sales of euro area debt securities amounting to €283 billion, following net purchases of €127 billion in the 12 months to November 2020.

Data for the financial account of the euro area

In other investment, euro area residents recorded net acquisitions of non-euro area assets amounting to €158 billion in the 12 months to November 2021 (following net acquisitions of €231 billion in the 12 months to November 2020), while their net incurrence of liabilities increased to €816 billion (up from €249 billion in the 12 months to November 2020).

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €182 billion in the 12-month period to November 2021. This decrease was mainly driven by euro area non-MFIs’ net outflows in portfolio investment debt and, to a lesser extent, in direct investment. These developments were partly offset by the current and capital accounts surplus and by euro area non-MFIs’ net inflows in portfolio investment equity, other investment and other flows.

In November 2021 the Eurosystem’s stock of reserve assets increased to €1,045.4 billion, up from €1,019.0 billion in the previous month (Table 3). This increase was driven by price changes (€15.4 billion, of which €15.3 billion was due to monetary gold), exchange rate changes (€10.3 billion) and, to a lesser extent, net acquisitions of assets (€0.6 billion).

Data for the reserve assets of the euro area

Data revisions

This press release incorporates revisions to the data for October 2021. These revisions did not significantly alter the figures previously published.

Next releases:

• Monthly balance of payments: 18 February 2022 (reference data up to December 2021)
• Quarterly balance of payments and international investment position: 5 April 2022 (reference data up to the fourth quarter of 2021)

For media queries, please contact Philippe Rispal, tel.: +49 69 1344 5482.

Notes

• Current account data are always seasonally and working day-adjusted, unless otherwise indicated, whereas capital and financial account data are neither seasonally nor working day-adjusted.
• Hyperlinks in this press release lead to data that may change with subsequent releases as a result of revisions.