Monthly developments in February 2001 and revisions for the fourth quarter of 2000

The cumulative deficit of the current account in January and February 2001 stood at EUR 6.5 billion, compared with a deficit of EUR 11.5 billion for the corresponding period in 2000. This resulted from the balance for current transfers moving from a deficit of EUR 1.5 billion to a surplus of EUR 1.8 billion (owing to the surplus of EUR 2.5 billion recorded in January 2001), combined with a shift of the goods balance from a deficit of EUR 0.2 billion to a surplus of EUR 1.4 billion. The improvement in the cumulative goods balance for the first two months of 2001 compared with the same period last year arose because export values grew faster (by 18.7%) than import values (by 17.5%). Net direct investment outflows amounted to EUR 0.8 billion in February, compared with EUR 4.5 billion in January 2001 and EUR 31.3 billion in December 2000. This evolution is related to the relatively high level of foreign direct investment in the euro area of EUR 16.4 billion in February (EUR 8.5 billion in January). Direct investment abroad by euro area residents was EUR 17.1 billion in February (EUR 13 billion in January); more than half of this amount (EUR 9.5 billion) is related to "other capital", which is mostly inter-company loans. Elsewhere in the financial account, net outflows in financial derivatives amounted to EUR 1 billion in February 2001. Net outflows in other investment amounted to EUR 3.2 billion. Reserve assets decreased by EUR 6.1 billion in February 2001 (excluding valuation effects). In addition to the key items for February 2001, this press release incorporates a revised and more detailed set of balance of payments (b.o.p.) statistics for the fourth quarter of 2000, which refer to the Euro 11. Following these revisions, the current account deficit for the euro area has increased by EUR 6.1 billion, mainly related to a downward revision of the goods surplus by EUR 6.7 billion. In the financial account, net direct investment remained virtually unchanged, while portfolio investment net outflows increased by EUR 16 billion, mainly reflecting a downward revision of investment by euro area non-residents in euro area equities by EUR 17 billion. Relatively small revisions applied to financial derivatives and reserve assets; net inflows in "other investment" were revised upwards by around EUR 12 billion. The revisions made to the Euro 11 data have a similar impact on the corresponding Euro 12 figures.

The current account balance turned into a surplus of EUR 2.1 billion in February 2001, from a deficit of EUR 1.1 billion in February 2000 (all figures refer to the Euro 12). This was primarily due to an increase in the goods surplus (from EUR 2.2 billion in February 2000 to EUR 3.3 billion in February 2001) combined with a shift from a deficit of EUR 1.0 billion to a surplus of EUR 0.5 billion for income and a small decrease in the deficit for services (from EUR 1.8 billion to EUR 1.1 billion). The deficit for current transfers remained virtually unchanged. In the financial account, both direct and portfolio investment net flows were close to zero in February 2001, in sharp contrast to net outflows in direct and, particularly, in portfolio investment in January 2001, which together amounted to EUR 50 billion. In the first two months of 2001, combined net direct and portfolio investment outflows were significantly larger (EUR 49.7 billion) than for the same period in 2000 (EUR 9.5 billion), as a result of the large net outflows in January 2001. It may be worth recalling that the large net inflows in direct investment and the significant net outflows in portfolio investment in February 2000 were largely influenced by a company merger, settled by an exchange of shares, which was recorded as direct investment in the euro area and a portfolio equity net outflow from the euro area. Portfolio investment recorded net inflows of EUR 0.9 billion in February 2001, compared with net outflows of EUR 45.5 billion in January and net inflows of EUR 8.9 billion in December 2000. In particular, net outflows in debt instruments declined sharply in February, to EUR 1.6 billion from EUR 25.6 billion in January (while in December 2000 net inflows were recorded). It is noteworthy that in February the Euro 12 recorded net inflows in equities (EUR 2.5 billion) for the first time since August 2000, reflecting mainly the decline in investment abroad by euro area residents. Errors and omissions amounted to a negative EUR 5.7 billion in February 2001, and to a positive EUR 6.1 billion in the first two months of 2001.

Annex 1 Annex 2 ECB Monthly Bulletin The European Central Bank and the European Commission (Eurostat) simultaneously disseminate press releases on the quarterly balance of payments for the euro area and the EU15. In line with the agreed allocation of responsibility, the European Central Bank is in charge of compiling and disseminating the euro area monthly and quarterly balance of payments statistics, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU15 ( 

to this press release contains statistics produced by the Eurosystem for the monthly balance of payments of the euro area for 2000 and 2001 (Euro 12 data); shows more detailed quarterly data for the Euro 11. The results for February 2001 will also be published in the May 2001 issue of the . A detailed methodological note on euro area b.o.p. statistics is available on the ECB's website.

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 ). The data comply with international standards, in particular those set out in the IMF Manual on Balance of Payments Statistics (5th edition). The aggregates for the euro area and the EU15 are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively. Reproduction is permitted provided that the source is acknowledged