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EU28 strikes €38.6 billion current account surplus in Q4, Cyprus records -€1.2 billion deficit

April 5, 2019 at 2:47pm

The EU28 seasonally adjusted current account of the balance of payments recorded a surplus of €38.6 billion (1.0% of GDP) in the fourth quarter of 2018, up from a surplus of €36.2 billion (0.9% of GDP) in the third quarter of 2018 and down from a surplus of €57.2 billion (1.5% of GDP) in the fourth quarter of 2017, according to estimates released by Eurostat, the statistical office of the European Union.

In the fourth quarter of 2018 compared with the third quarter of 2018, based on seasonally adjusted data, the surplus of the goods account increased (+€10.9 bn compared to +€4.6 bn) as did the surplus in the primary income account (+€12.7 bn compared to +€5.8 bn). The surplus of the services account fell (+€42.2 bn compared to +€47.0 bn), while the deficit of the secondary income account increased (-€27.2 bn compared to -€21.1 bn), as did the deficit of the capital account (-€24.3 bn compared to -€3.4 bn).

In Cyprus  seasonally adjusted current account of the balance of payments recorded a deficit of -1.2 billion, in the fourth quarter of 2018 same as the fourth quarter of 2017. It was 0.0 billion in the third quarter. The trade of services balance was positive at 0.8billion in the fourth quarter, down from 1.3billion in the third quarter and 1.0 billion in the same quarter of 2017.

In Greece seasonally adjusted current account of the balance of payments recorded a deficit of -3.9 billion in the fourth quarter of 2018, from 3.2 billion surplus in the third quarter and -3.4 billion deficit in the same quarter of 2017. Trade in services balance was +2.9 billion down from +10.5 billion in the previous quarter and up from +2.4billion in the same quarter of 2017.

In the fourth quarter of 2018, based on non-seasonally adjusted data, the EU28 recorded external current account surpluses with the USA (+€67.7 bn), Switzerland (+€23.9 bn), Canada (+€9.5 bn), Brazil (+€5.9 bn), Hong Kong (+€5.7 bn), offshore financial centres (+€4.7 bn), India (+€2.0 bn) and Japan (+€0.3 bn). Deficits were registered with China (-€28.5 bn) and Russia (-€13.3 bn).

Based on non-seasonally adjusted data, direct investment assets of the EU28 dropped in the fourth quarter of 2018 by €151.4 bn, while direct investment liabilities decreased by €71.7 bn. As a result, the EU28 was a net recipient of direct investment in the fourth quarter of 2018 by €79.7 bn. Portfolio investment recorded a net outflow of €29.1 bn, while for other investment there was a net inflow of €54.8 bn.

(Cyprus News Agency)