Monthly developments in February 2002 and revisions for the third and fourth quarters of 2001

The cumulative surplus for the current account in January and February 2002 stood at EUR 0.6 billion, compared with a deficit of EUR 9.9 billion for the corresponding period in 2001. This resulted from the goods balance turning from a deficit of EUR 0.5 billion to a surplus of EUR 10.3 billion, and the income deficit falling from EUR 8.1 billion to EUR 6.8 billion, which more than compensated for the increase in the services deficit from EUR 3.5 billion to EUR 5.1 billion. The current transfers surplus remained unchanged at EUR 2.2 billion. The change in the goods balance was due to the value of imports decreasing at a stronger rate than that of exports (by 9.8% and 3.2% respectively), partly reflecting the significant decline in the price of oil imports over this period. Turning to the financial account, developments in February 2002 were characterised by relatively low net flows in most categories. The euro area experienced a net outflow of EUR 19.8 billion in combined direct and portfolio investment in February 2002, reflecting net outflows of EUR 9.9 billion for both direct investment and portfolio investment. The net outflows in the portfolio investment account were due to net outflows in debt instruments (EUR 10.5 billion), whereas equity portfolio investment was close to balance. Net outflows in money market instruments of EUR 9.6 billion explained most of the net outflows in debt instruments in February 2002. By contrast, bonds and notes recorded a small net outflow of EUR 1.0 billion. In addition to the key items for February 2002, this press release incorporates a revised set of balance of payments (b.o.p.) statistics for the third and fourth quarters of 2001, as well as some additional breakdowns regarding the fourth quarter of 2001. In the financial account, the main revision was recorded in "other investment" for the third quarter of 2001, for which net outflows were revised from EUR 95.6 billion to EUR 72.8 billion. Data revisions to other items of the financial account were mostly modest.

The euro area current account recorded a surplus of EUR 2.1 billion in February 2002, compared with a surplus of EUR 1.2 billion in February 2001. This largely resulted from an increase in the goods surplus (from EUR 3.3 billion in February 2001 to EUR 8.2 billion in February 2002), combined with a small decrease in the deficit for income (EUR 0.5 billion), which were only partially offset by higher deficits for both current transfers (from EUR 0.5 billion to EUR 3.6 billion) and services (from EUR 1.1 billion to EUR 2.4 billion). On a seasonally adjusted basis, monthly exports and imports of goods (in value) both rose in February 2002 for the first time since October 2001 and June 2001 respectively. By contrast, the seasonally adjusted value of both exports and imports of services fell in February 2002. The net outflows in direct investment are primarily explained by "other capital, mostly intercompany loans" abroad, which showed a net outflow of EUR 15.1 billion. By contrast, both equity capital investment and "other capital, mostly intercompany loans" in the euro area recorded net inflows of EUR 3.1 billion and EUR 6.9 billion respectively. The other investment account recorded net inflows of EUR 21.7 billion in February 2002. Within this item, the gross figures (assets and liabilities) of the "other sectors" were influenced in particular by a single transaction of close to EUR 9 billion involving the use of assets abroad to repay outstanding liabilities. Financial derivatives registered net inflows of EUR 1.3 billion. Reserve assets decreased by EUR 2.5 billion (excluding valuation effects) and errors and omissions were a negative EUR 8.1 billion. Data revisions have resulted in an increase in the current account balance of EUR 2.1 billion and EUR 9.1 billion in the third and fourth quarters of 2001 respectively, leading to a higher current account surplus of EUR 7.4 billion in the third quarter and EUR 15.0 billion in the fourth quarter. As a consequence, the current account recorded a surplus of EUR 2.0 billion in 2001. These changes were mainly due to revisions in the goods surplus which was revised upwards by EUR 1.4 billion and EUR 6.4 billion in the third and fourth quarters respectively.

Note on balance of payments statistics produced by the Eurosystem

Euro-indicators News Releases The results up to February 2002 will also be published in the May 2002 issue of the

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 EU15 are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively.

ECB Monthly Bulletin

Annexes

. A detailed methodological note is available on the ECB's website.

Table 1 Table 2 Table 3

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

: Monthly balance of payments of the euro area for 2001 and 2002. : Euro area current account - seasonally adjusted data (Euro 12). : Quarterly balance of payments of the euro area (Euro 12). Reproduction is permitted provided that the source is acknowledged