Eurozone current account surplus increases to 3.3% of GDP in June

The euro area´s surplus in its commercial and financial exchanges with the rest of the world increased in June.

According to the European Central Bank, the current account surplus reached €347.8bn over the twelve months ending in June 2016, versus €302.1bn over the comparable period to June 2015.

That was equivalent to 3.3% of the area´s gross domestic product, up from 2.9% one year ago.

An increase in the goods surplus, from €306.6bn to €368.4bn, was the main factor behind the improvement in the overall current account for the past year.

In June, the surplus was €28.2bn, with surpluses for goods (€32.9bn) and services (€5.3bn) offset by a deficit or shortfall in the secondary income account to the tune of €10.1bn.

The primary income account, the fourth component of the current account, was almost balanced, the ECB said.

The next external asset position of Eurozone monetary and financial institutions fell by €134bn over the same 12-month time span, the ECB also said.

That was mainly the result of declines in other items and in particular developments in the portfolio investment liabilities of non-MFI euro area residents.

Residents from outside the single currency zone shifted, to the tune of €198bn, from buying debt issued by non-MFIs hailing from the euro area to selling. The sold €166bn during the latest period versus purchases of €32bn over the previous year.

In parallel, net purchases by non-euro area residents of euro area equity securities dropped from €213bn to €74bn.