Monthly developments in December 1999 and preliminary overall results for 1999

Exports of goods continued to grow strongly in December, rising by EUR 9.1 billion, as compared with the same month a year earlier (from ECU 64.3 billion to EUR 73.4 billion). Despite this increase, the goods surplus continued to decline as imports grew by EUR 11 billion in December, as compared with the corresponding month in 1998 (from ECU 54 billion to EUR 65 billion). In 1999 as a whole, the goods surplus fell by EUR 18.9 billion, compared with 1998, largely reflecting the sharp rise in import prices during the year, which was due to considerably higher oil prices and the depreciation of the exchange rate of the euro. In the financial account, direct investment recorded net outflows of EUR 26.6 billion in December (EUR 17.5 billion in November). By contrast, portfolio investment reported net inflows of EUR 7.0 billion in December (EUR 18.0 billion in November). In particular, net inflows related to the acquisition of euro area debt instruments amounted to EUR 10.6 billion, which more than offset the net outflows of EUR 3.6 billion recorded for equities. Net portfolio investment outflows, by contrast, were substantially lower in 1999 as whole (EUR 21.3 billion, down from ECU 85.3 billion in 1998). This was related to the swing in debt instruments from net outflows in 1998 (ECU 84.8 billion) to net inflows in 1999 (EUR 34.8 billion). Both lower investment of euro area residents abroad and stronger demand of foreign investors for euro area debt securities, in particular money market instruments, contributed to the downturn. On the other hand, equity net outflows increased to EUR 56.1 billion (from ECU 0.4 billion in 1998), mainly as a result of higher investment in foreign equities by euro area residents (which rose to EUR 150.0 billion, from ECU 98.7 billion in 1998). Errors and omissions amounted to EUR 0.9 billion in December and to EUR 6.7 billion in 1999 as a whole. en ECB Monthly Bulletin

European Central Bank Press and Information Division Kaiserstrasse 29, D-60311 Frankfurt am Main Tel.: +49 69 13 44 74 55, Fax: +49 69 13 44 74 04 Internet: http://www.ecb.europa.eu

The current account surplus of the euro area declined to EUR 2.6 billion in December 1999 (from ECU 6.1 billion in the same month in 1998). The decline was due to a fall in the goods surplus (to EUR 8.4 billion, from ECU 10.3 billion in December 1998) as well as to a larger deficit on current transfers and a shift in the balance of services from a small surplus to a deficit. According to currently available data, the current account surplus for 1999 fell to EUR 43.2 billion, EUR 17.1 billion lower than in 1998, primarily due to the shrinking goods surplus, and to a higher deficit for services (EUR 6.6 billion, compared with ECU 0.9 billion for 1998). By contrast, lower deficits in both the income and the current transfers accounts, which fell to EUR 7.3 billion and EUR 42.8 billion (from ECU 11.9 billion and ECU 45.8 billion in 1998), respectively, contributed to limiting the decline in the current account surplus during 1999. Looking at the whole of 1999, net direct investment outflows reached EUR 147.2 billion, substantially more than the ECU 102.6 billion recorded in 1998. The figures for 1999 reflect both an increase in direct investment abroad by euro area residents from ECU 183.0 billion to EUR 212.5 billion and a decline of foreign direct investment in the euro area from ECU 80.4 billion to EUR 65.2 billion. Elsewhere in the financial account, net outflows in financial derivatives reached EUR 0.4 billion, and other investment showed net inflows of EUR 14.7 billion in December. Reserve assets increased by EUR 0.8 billion in December. The table attached to this press release (  pdf 6 kB,  ) contains statistics produced by the Eurosystem in respect of the balance of payments (b.o.p.) of the euro area; the methodology has been set up in close co-operation with the European Commission (Eurostat) which publishes the b.o.p. for the European Union. The ECB compiles these statistics on the basis of the data on extra-euro area transactions reported by euro area countries. The results for December 1999 will also be published in the March 2000 issue of the . A detailed methodological note on euro area b.o.p. statistics is available on the ECB's Web site ("Euro area statistics - download"). Reproduction is permitted provided that the source is acknowledged