EU current account balance shows $77B surplus in Q3

By Gokhan Ergocun

ISTANBUL (AA) - The European Union's current account balance saw a surplus of €69.4 billion (some $77 billion) in the third quarter of 2019, the EU statistical office said on Monday.

Eurostat said the EU28's surplus accounted for 1.7% of the bloc's gross domestic product (GDP) in July-September.

The surplus was €43.5 billion ($48.3 billion) or 1.1% of GDP in the previous quarter and €42 billion ($48.7 billion) or 1.1% of GDP in the third quarter of 2018.

The average euro/U.S. dollar exchange rate was 1.11 in the second and third quarters of 2019, and 1.16 in the third quarter of 2018.

Surpluses of the goods and services account rose to €40.4 billion ($44.8 billion) and €49.9 billion ($55.4 billion), from €28.5 billion ($31.6 billion) and €29.6 billion ($32.8 billion), respectively, in the third quarter versus the previous quarter.

"Surplus of the primary income account fell [+€1.4 billion ($1.55 billion) compared to +€7.2 ($7.99 billion)]," it said, adding:

"The deficit of the secondary income account grew [-€22.3 billion ($24.75 billion) compared to -€21.8 billion ($24.2 billion)]. The deficit of the capital account decreased [-€4.4 billion ($4.88 billion) compared to -€19 billion ($21 billion)]."

Official figures showed 17 of the 28 EU member states saw surpluses, 10 deficits, and one was in balance in the third quarter last year.

The highest surpluses were seen in Germany with €63.2 billion ($70.15 billion), followed by the Netherlands (€19.3 billion or $21.4 billion), Italy (€17.3 billion or $19.2 billion), Ireland (€11.2 billion or $12.4 billion), and Denmark (€8.3 billion or $9.2 billion).

The U.K. (€23.9 billion/$26.5 billion), France (€4.1 billion/$4.55 billion), and Romania (€3.6 billion/$3.99) saw the largest deficits.

Among the EU’s main trading partners, the bloc recorded external current account surpluses with the U.S. (€71.2 billion/$79.2 billion), Switzerland (€13.4 billion/$14.87 billion), Canada (€10.4 billion/$11.5 billion), Hong Kong (€6.9 billion/$7.66 billion), Brazil (€6.8 billion/$7.55 billion), and Japan (€1.3 billion/$1.44 billion) in the third quarter of last year.

"Deficits were registered with China [-€31.8 billion ($35.3 billion], Russia [-€2.7 billion ($2.99 billion] and India [-€1.6 billion ($1.77 billion)]," Eurostat added.