Monthly developments in February 2000

Turning to the results for February 2000, the current account surplus of the euro area increased marginally, to EUR 2.4 billion (from EUR 2.3 billion in the corresponding month in 1999). This was due to lower deficits on both income and current transfers, which more than offset a EUR 2 billion decline in the balance for services and a lower goods surplus (EUR 6.3 billion, from EUR 6.9 billion in February 1999). In the first two months of 2000 the current account recorded a cumulative deficit of EUR 4.2 billion, compared with a deficit of EUR 0.1 billion in the same period in 1999. The increase in the deficit was due mainly to a EUR 4.5 billion decline in the goods surplus, combined with a EUR 1 billion increase in the deficit on services. The deficit on current transfers, by contrast, fell by almost EUR 2 billion in the same period. Primarily as a result of the above transaction, direct investment recorded a net inflow of EUR 144.7 billion in February. At the same time, portfolio investment showed net outflows of EUR 138.7 billion. Regarding debt instruments, euro area residents invested mostly in foreign bonds and notes (EUR 12.6 billion), while foreigners concentrated their investment in euro area money market instruments (EUR 15.8 billion). Errors and omissions amounted to a negative EUR 12.3 billion in February 2000. en ECB Monthly Bulletin In the light of new information, the ECB has revised the b.o.p monthly key items for the fourth quarter of 1999 (Annexes 2 (  pdf 5.88 kB,

In addition to the balance of payments (b.o.p.) monthly key items for February, this release incorporates a revised and more detailed set of b.o.p. statistics for the fourth quarter of 1999. The quarterly statistics for the fourth quarter of 1999 include a breakdown of the income item of the current account and additional information on sectors and instruments for the b.o.p. financial account. The full set of revised data will be presented in the May issue of the ECB Monthly Bulletin. As in recent months, both exports and imports of goods grew very rapidly in February 2000, compared with the same month last year. Export values rose by EUR 14.4 billion (or about 25%) over this period, reflecting robust foreign demand and improvements in euro area price competitiveness. At the same time, imports rose by EUR 15.1 billion (or 30%), largely due to the sharp rise in import prices during 1999 as a result of higher oil prices and the depreciation of the euro. Financial flows in February were much influenced by a single transaction involving the acquisition, settled through an exchange of shares, of a euro area company by a non-resident. In the euro area b.o.p. this operation was recorded as a direct investment inflow and - with regard to its settlement - as an equity outflow within portfolio investment. Elsewhere in the financial account, net inflows in financial derivatives reached EUR 2.6 billion, and EUR 0.2 billion in other investment in February 2000. Eurosystem reserve assets fell by EUR 0.8 billion in February. Annex 1 (  pdf 5.63 kB,  ) to this press release contains statistics produced by the Eurosystem in respect of the balance of payments (b.o.p.) of the euro area; the methodology has been developed in close co-operation with the European Commission (Eurostat) which publishes the b.o.p. for the European Union. The ECB compiles these statistics on the basis of the data on extra-euro area transactions reported by euro area countries. The results for February 2000 will also be published in the May 2000 issue of the . A detailed methodological note on euro area b.o.p. statistics is available on the ECB's Web site ("Euro area statistics - download").

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 ) and 3 (  pdf 49 kB,  )). As a result, the current account surplus for the fourth quarter has been revised downwards by EUR 1.5 billion to EUR 3.4 billion, primarily on account of a reduction in the goods surplus and a larger deficit on services, accompanied by minor revisions to the income and current transfers accounts. The net inflow in the financial account for the fourth quarter of 1999 was revised downwards from EUR 5.4 billion to EUR 3.8 billion. Reproduction is permitted provided that the source is acknowledged