Euro area monthly balance of payments: September 2022

The current account deficit of the euro area amounted to €8 billion in September 2022, narrowing by €19 billion compared to the previous month (Chart 1 and Table 1). Deficits were recorded for secondary income (€12 billion) and goods (€11 billion). These were partly offset by surpluses for primary income (€9 billion) and services (€6 billion).

Data for the current account of the euro area

In the 12 months to September 2022, the current account recorded a deficit of €50 billion (0.4% of euro area GDP), compared with a surplus of €336 billion (2.8% of euro area GDP) in the 12 months to September 2021. This change in the balance was largely driven by a switch from a surplus (€362 billion) to a deficit (€41 billion) for goods and, to a lesser extent, by a reduction in the surplus for primary income (down from €65 billion to €19 billion). These developments were partly offset by a larger surplus for services (up from €75 billion to €134 billion) and a slightly lower deficit for secondary income (down from €166 billion to €162 billion).

In direct investment, euro area residents made net investments of €206 billion in non-euro area assets in the 12-month period to September 2022, following net investments of €86 billion in the 12 months to September 2021 (Chart 2 and Table 2). Non-residents disinvested €60 billion in net terms from euro area assets in the 12-month period to September 2022, following net disinvestments of €38 billion in the 12 months to September 2021.

In portfolio investment, euro area residents’ net sales of non-euro area equity amounted to €146 billion in the 12 months to September 2022, following net purchases of €518 billion in the 12 months to September 2021. Over the same period, euro area residents’ net sales of non-euro area debt securities amounted to €20 billion, following net purchases of €475 billion in the 12 months to September 2021. Non-residents’ net purchases of euro area equity decreased to €103 billion in the 12-month period to September 2022, down from €511 billion in the 12 months to September 2021. Over the same period non-residents’ net sales of euro area debt securities amounted to €124 billion, decreasing from €343 billion in the 12 months to September 2021.

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 €362 billion in the 12 months to September 2022 (following net acquisitions of €46 billion in the 12 months to September 2021), while their net incurrence of liabilities decreased to €533 billion (down from €721 billion in the 12 months to September 2021).

The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs decreased by €148 billion in the 12-month period to September 2022. This decrease was driven by euro area non-MFIs’ net outflows in direct investment, other investment and other flows. These developments were partly offset by the current and capital accounts surplus and by euro area non-MFIs’ net inflows in portfolio investment equity and, to a lesser extent, in portfolio investment debt.

In September 2022 the Eurosystem’s stock of reserve assets increased to €1,135.8 billion, up from €1,130.6 billion in the previous month (Table 3). This increase was driven by positive exchange rate changes (€6.0 billion) and, to a lesser extent, by net acquisitions of assets (€3.6 billion), which were partly offset by negative price changes (€4.4 billion).