The seasonally adjusted current account of the euro area recorded a deficit of EUR 7.4 billion in June 2011. This reflected deficits for current transfers (EUR 10.8 billion) and income (EUR 1.5 billion), which were partly offset by surpluses for services (EUR 4.4 billion) and goods (EUR 0.6 billion).
The 12-month cumulated seasonally adjusted current account recorded a deficit of EUR 59.9 billion in June 2011 (around 0.6% of euro area GDP), compared with a deficit of EUR 15.7 billion a year earlier. This increase resulted mainly from a decrease in the surplus for goods (from EUR 37.3 billion to EUR 0.8 billion).
Financial account
In the financial account, combined direct and portfolio investment recorded net inflows of EUR 94 billion in June 2011, as a result of net inflows both for portfolio investment (EUR 88 billion) and for direct investment (EUR 6 billion).
The net inflows for direct investment resulted from net inflows in other capital (mostly inter-company loans) (EUR 11 billion), which were partly offset by net outflows in equity capital and reinvested earnings (EUR 5 billion).
Portfolio investment recorded net inflows in debt instruments (EUR 75 billion) and in equity (EUR 13 billion). The net inflows in debt instruments resulted mainly from net purchases of euro area bonds and notes by non-residents (EUR 61 billion).
The financial derivatives account recorded net inflows of EUR 3 billion.
Other investment recorded net outflows of EUR 88 billion, reflecting predominantly net outflows for MFIs excluding the Eurosystem (EUR 79 billion) and for other sectors (EUR 11 billion).
The Eurosystem’s stock of reserve assets decreased by EUR 12 billion in June 2011 (from EUR 593 billion to EUR 581 billion), of which EUR 2 billion was accounted for by transactions.
In the 12-month period to June 2011 combined direct and portfolio investment recorded cumulated net inflows of EUR 333 billion, compared with net inflows of EUR 107 billion in the preceding 12-month period. This increase was the result of higher net inflows for portfolio investment (EUR 342 billion, up from EUR 212 billion) and lower net outflows for direct investment (EUR 9 billion, down from EUR 105 billion). The higher net inflows for portfolio investment mainly reflected higher net inflows in bonds and notes (EUR 140 billion, up from EUR 51 billion).
