Monthly developments in May 2001 and revisions for the fourth quarter of 2000 and first quarter of 2001

The cumulated current account deficit for the first five months of 2001 decreased to EUR 10.3 billion (from EUR 19.4 billion for the same period in 2000). This is mainly due to a strong increase in the cumulated goods surplus (to EUR 18.0 billion, from EUR 7.9 billion), combined with a EUR 1.2 billion decrease in the deficit for services, only partially offset by a EUR 2.6 billion increase in the income deficit. Meanwhile, the deficit for current transfers remained virtually unchanged. Although the increase in the cumulated goods surplus resulted mainly from the growth in export values (14.0%), which outpaced the growth in import values (11.6%), the growth rates for both exports and imports were considerably slower than at the end of last year.

The current account deficit of the euro area decreased marginally to EUR 0.8 billion in May 2001, from EUR 1.0 billion in May 2000. While the surplus for both goods and services more than doubled over the same period (to EUR 5.3 billion, from EUR 2.3 billion for goods, and to EUR 1.8 billion, from EUR 0.7 billion, for services), the deficits for both income and current transfers increased (to EUR 2.6 billion, from EUR 1.1 billion for income, and to EUR 5.3 billion, from EUR 2.9 billion, for current transfers).

Seasonally adjusted data

In the financial account, combined direct investment and portfolio investment registered a net outflow of EUR 15.5 billion in May 2001. Combined direct investment and portfolio investment amounted to a total net outflow of EUR 117.4 billion for January to May 2001, as compared with net outflows of EUR 54.8 during the same period in 2000. For portfolio investment, net inflows of EUR 24.9 billion resulted from large net inflows of equities of EUR 48.7 billion - largely related to the above-mentioned takeover - which were only partially offset by a net outflow of bonds and notes of EUR 23.8 billion. In addition to the key items for May 2001, this press release incorporates a revised and more detailed set of balance of payments (b.o.p.) statistics for the first quarter of 2001. Following these revisions, the current account deficit was revised downwards by EUR 3.0 billion to EUR 6.3 billion for the first quarter of this year. This was mainly due to an upward revision of the goods surplus and a downward revision of the deficits for both services and current transfers, while the income account remained virtually unchanged. Data for the fourth quarter of 2000 have also been revised. The most significant amendment was the change in the figure for portfolio investment, from EUR 2.2 billion to EUR 9.7 billion.

For the first time, seasonally adjusted data for the different categories of the current account are now available. According to these data, monthly exports of goods and services have remained virtually unchanged since the end of last year, while imports have actually been falling over the same period. The latter seems to be explained by the deceleration in euro area domestic demand as well as the decline in import prices in the first quarter of 2001, while the flattening of exports partially reflects the marked slowdown in foreign demand. Direct investments recorded relatively large net outflows of EUR 40.4 billion in May 2001, primarily due to a single large takeover transaction that was settled mainly through an exchange of shares. Net inflows of financial derivatives and of other investment amounted to EUR 3.4 billion and EUR 11.1 billion respectively. Reserve assets increased by EUR 3.6 billion, whereas errors and omissions were a positive EUR 4.9 billion. In the financial account, direct investment outflows were revised downwards by EUR 4.6 billion to EUR 42.9 billion in the first quarter of 2001. The overall revision for portfolio investment for the first quarter 2001 was negligible.

Note on balance of payments statistics produced by the Eurosystem

The methodology used was developed in close co-operation with the European Commission (Eurostat) which publishes the Balance of Payments for the European Union ( 

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. 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.

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Annex

 ). The ECB compiles these statistics on the basis of the data on extra-euro area transactions reported by euro area countries. The data up to May 2001 will also be published in the August 2001 issue of the , together with a technical note on the seasonal adjustment method. A detailed methodological note is available on the ECB's website.

Annex 1 Annex 2 Annex 3

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to this press release contains statistics produced by the Eurosystem for the monthly balance of payments of the euro area for 2000 and 2001 (Euro 12 data); contains the seasonally adjusted current account data for Euro 12. shows more detailed quarterly data for the Euro 12. Reproduction is permitted provided that the source is acknowledged