Monthly developments in November 2000 and revisions for the third quarter of 2000

The cumulative deficit on the current account in the first eleven months of 2000 stood at EUR 23.6 billion, compared with a deficit of EUR 1.9 billion for the corresponding period in 1999. This increase largely resulted from a decrease in the goods surplus (from EUR 77.9 billion in the first eleven months of 1999, to EUR 54.6 billion for the corresponding period in 2000). A EUR 6.6 billion decline in the income deficit was partially offset by a EUR 4.7 billion rise in the deficit for current transfers, while the deficit for services remained virtually unchanged. The decrease in the goods surplus was due to a sharper increase in the value of imports (by 26.2%, from EUR 660.9 billion to EUR 834.2 billion) than in the value of exports (by 20.3%, from EUR 738.8 billion to EUR 888.9 billion). Net outflows of EUR 3.9 billion in portfolio investment in November 2000 reflect net outflows in both equities (EUR 13.4 billion) and money market instruments (EUR 12.1 billion) which more than offset net inflows in bonds and notes (EUR 21.6 billion). In November 2000, foreign investment in euro area bonds and notes reached its highest level in 2000, confirming a trend increase observed since early 2000. Combined net direct and portfolio investment outflows fell to EUR 13.4 billion in November, compared with an average of EUR 23.6 billion in the three months prior to November. For the first eleven months of 2000, combined net direct and portfolio investment outflows were somewhat lower (EUR 132.5 billion) than in the corresponding period of 1999 (EUR 142.8 billion). A key feature is that in 2000 the balance for bonds and notes turned to net inflows of EUR 108.0 billion - in contrast to net outflows of EUR 37.0 billion in 1999. In addition to the key items for November 2000, this press release incorporates a revised and more detailed set of balance of payments (b.o.p.) statistics for the third quarter of 2000. The revisions had only a marginal impact on the current account balance as the upward revision to the services deficit (from EUR 0.6 billion to EUR 2.5 billion) was largely offset by the downward revision to the income deficit (from EUR 8.5 billion to EUR 7.1 billion), while the balances for current transfers and goods remained virtually unchanged. In the financial account, net direct investment outflows were revised upward by EUR 3.0 billion while the net inflows to portfolio investment in the third quarter were revised downward by EUR 9.7 billion. Relatively small revisions also applied to financial derivatives, "other investment" and reserve assets.

In November 2000, the current account deficit increased by EUR 0.8 billion as compared with the same month in 1999, to EUR 2.9 billion. This increase is due primarily to a decrease of the goods surplus (from EUR 6.3 billion in November 1999 to EUR 4.6 billion in November 2000). Combined with an increase in the deficit for both income (by EUR 0.5 billion) and current transfers (by EUR 0.6 billion), this more than offset the decrease in the deficit for services (from EUR 2.3 billion in November 1999 to EUR 0.2 billion in November 2000). In the financial account, the main development was a significant decline of net direct investment outflows to EUR 9.5 billion, related mainly to relatively high inward direct investment by non-euro area residents of EUR 16.3 billion, a large part of which was, however, related to "other capital" (EUR 9.9 billion), most of which is intercompany loans. Elsewhere in the financial account, net outflows in financial derivatives amounted to EUR 4.2 billion in November 2000. Net inflows to other investment amounted to EUR 0.9 billion. Reserve assets decreased by EUR 7.8 billion in November 2000 (excluding valuation effects). Errors and omissions amounted to EUR 11.0 billion in November 2000, and to EUR 0.8 billion in the first eleven months of 2000.

Annex 1 Annex 2 The results for November 2000 will also be published in the February 2001 issue of the

to this press release contains statistics produced by the Eurosystem for the monthly balance of payments of the euro area for 1999 and 2000; shows more detailed quarterly data.

ECB Monthly Bulletin The European Central Bank and the European Commission (Eurostat) simultaneously disseminate press releases on the quarterly balance of payments for the euro area and the EU15. In line with the agreed allocation of responsibility, the European Central Bank is in charge of compiling and disseminating the euro area monthly and quarterly balance of payments statistics, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU15 ( 

. A detailed methodological note on euro area b.o.p. statistics is available on the ECB's website.

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 ). The data comply with international standards, in particular those set out in the IMF Manual on Balance of Payments Statistics (5th edition). The aggregates for the euro area and the EU15 are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively. Reproduction is permitted provided that the source is acknowledged