05 Oct
european union Covid-19

Covid-19: European Union current account surplus €82.9 bn

In the second quarter of 2020, marked severely by COVID-19 containment measures in the Member States, the EU
seasonally adjusted current account of the balance of payments recorded a surplus of €82.9 billion (2.7% of GDP), up from a surplus of €52.9 billion (1.5% of GDP) in the first quarter of 2020 and from a surplus of €72.7 billion
(2.1% of GDP) in the second quarter of 2019, according to estimates released by Eurostat, the statistical office of the European Union.

In the second quarter of 2020 compared with the first quarter of 2020, based on seasonally adjusted data, the
surplus of the goods account decreased (+€48.9 bn compared to +€83.5 bn).

Deficit

The deficit of the services account moved to surplus (+€24.8 bn compared to -€5.8 bn), as did the deficit of the primary income account (+€24.8 bn compared to -€10.1 bn), while the deficit of the secondary income account grew (-€15.5 bn compared to -€14.7 bn).

The deficit of the capital account increased (-€8.6 bn compared to -€4.1 bn).

Main partners
In the second quarter of 2020, based on non-seasonally adjusted data, the EU recorded external current account
surpluses with the United Kingdom (+€35.6 bn), the USA (+€15.8 bn), Switzerland (+€15.5 bn), Russia (+€6.7
bn), Canada (+€6.2 bn), Hong Kong (+€4.4 bn) and Brazil (+€3.5 bn). Deficits were registered with China (-€29.0
bn), offshore financial centres (-€9.5 bn), Japan (-€0.5 bn) and India (-€0.2 bn).

About financial account
Based on non-seasonally adjusted data, direct investment assets of the EU increased in the second quarter of
2020 by €27.6 bn, while direct investment liabilities grew by €176.0 bn.

As a result, the EU was a net recipient of
direct investment from rest of the world in the second quarter of 2020 by €148.3 bn. Portfolio investment recorded a
net outflow of €159.9 bn, while for other investment there was a net inflow of €181.5 bn.

By: Estela Martín

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