Euro-Zone Current Account Moves Back Into Surplus

http://www.fxfxfx.com 2010-01-26 17:58:58

The euro zone had a small surplus on its current account in November, as the deficit on current transfers--which include government aid to countries outside the currency area--narrowed sharply.

Figures released by the European Central Bank Tuesday showed the current account was in surplus by EUR0.1 billion, compared with a deficit of EUR4.6 billion in October.

On a seasonally adjusted basis, the surplus in the trade in goods fell to EUR7 billion from EUR7.1 billion and the surplus in the trade in services fell to EUR2.3 billion from from EUR3.7 billion in October.

That suggests that exports didn't make a significant contribution to a pickup in growth during the month.

The euro zone's deficit on income flows--or earnings from foreign investments--widened to EUR3.3 billion from EUR2.0 billion in October.

However, its deficit on current transfers--including government aid to countries outside the euro zone--narrowed to EUR5.8 billion from EUR13.4 billion in October.