April 6, 2022
According to Eurostat’s recent report, the EU fourth quarter of 2021, seasonally adjusted current account balance recorded a surplus of €49.6 billion, which is 1.3% of GDP. This represents a decrease of €20 billion, from the third quarter surplus of €69.6 billion, which was 1.9% of the GDP. Also, €75.8 billion less than 2020 fourth quarter current account surplus of €125.4 billion which was 2.6% of GDP.
Eurostat noted, “In the fourth quarter of 2021 compared with the third quarter of 2021, based on seasonally adjusted data, the surplus of the goods account decreased (+€10.0 bn compared to +€53.8 bn), while the surplus of the services account increased (+€54.1 bn compared to +€26.8 bn). The surplus of the primary income account decreased (+€1.8 bn compared to +€5.6 bn), as did the deficit of the secondary income account (-€16.4 bn compared to -€16.5 bn).” The capital account turned from a surplus to a deficit (-€11.4 bn compared to +€1.3 bn).
The Eurostat further presented the non-seasonally adjusted data for the fourth quarter external current account surpluses with the “United Kingdom (+€46.8 bn), the USA (+€24.0 bn), Switzerland (+€22.6 bn), Canada (+€5.3 bn), Brazil (+€5.0 bn), Hong Kong (+€4.7 bn), Japan (+€3.3 bn) and India (+€1.5 bn). Deficits were observed with China (-€43.5 bn), Russia (-€16.0 bn) and offshore financial centres (-€12.3 bn).”
Based on non-seasonally adjusted data, direct investment assets of the EU decreased in the fourth quarter of 2021 by €13.0 billion, while direct investment liabilities declined by €65.0 billion. As a result, the EU was a net direct investor to the rest of the world in the fourth quarter of 2021 by €51.9 billion. Portfolio investment recorded a net outflow of €94.5 billion and for other investment there was a net inflow of €194.6 billion.
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