Monthly developments in February 2003 and revised data since 1997

Turning to month-on-month developments on the basis of seasonally adjusted data, the current account recorded a EUR 1.9 billion surplus in February 2003, compared with a surplus of EUR 2.2 billion the month before. The income deficit stood at EUR 5.6 billion, similar to the deficit observed in January 2003, but higher than the average monthly income deficit of around EUR 3 billion in 2002. The developments in portfolio investment were mostly due to substantial net purchases (EUR 30.4 billion) of euro area debt instruments (both bonds and notes and money market instruments) by non-resident investors, which more than offset considerable net purchases of foreign bonds and notes by euro area investors. Moreover, net inflows of equities in the euro area amounted to EUR 4.1 billion. The other investment account recorded net outflows of EUR 20.8 billion in February 2003. This development is primarily accounted for by the money-holding sector, i.e. "Other sectors", which invested EUR 22.4 billion in other investment assets (mostly deposits abroad), while its net inflows in liabilities (i.e. loans granted by non-residents) amounted to EUR 11.4 billion. The General government sector registered net outflows in both assets and liabilities. Net flows in the MFI sector were modest in February 2003. Template on international reserves and foreign currency liquidity

Data revisions

In the current account, the introduction of a new travel survey by one Member State has triggered a revision of the services balance. The new methodology revealed that travel expenditure had been underestimated so far. As a consequence of this and other revisions, the euro area current account balance has been revised downwards by around EUR 5 billion per year from 1997 to 2001, and by EUR 0.3 billion in 2002.

Additional information on the sharing of responsibilities regarding the compilation of the b.o.p. of the euro area and EU15

Eurostat's Euro-indicators News Releases The results up to February 2003 will also be published in the next issue of the

The euro area current account registered a surplus of EUR 3.2 billion in February 2003, compared with EUR 4.7 billion in February 2002. The lower surplus resulted from a EUR 3 billion increase in the income deficit and a slight decrease in the goods surplus, which more than offset the lower deficits for both services and current transfers. The capital account balance switched from a EUR 0.4 billion surplus to a EUR 0.9 billion deficit. In the financial account, combined direct and portfolio investment recorded net inflows of EUR 11.4 billion in February 2003, which mainly reflected net inflows in portfolio investment (EUR 10.7 billion). The slight net inflows recorded in direct investment stemmed from both equity and other capital. Reserve assets (excluding valuation effects) decreased by EUR 5.4 billion in February 2003. The end-February stock of the Eurosystem's reserve assets stood at EUR 352.7 billion (   ). In addition to the key items for February 2003, the present note incorporates some additional breakdowns regarding the fourth quarter of 2002, as well as a revised set of balance of payments statistics for the years 1997 to 2002. The revisions of the financial account mostly affected portfolio investment since 2001, as one Member State reported substantial changes in debt instrument-related liabilities. Net inflows in euro area debt instruments have been revised upwards from EUR 95.0 billion and EUR 150.3 billion to EUR 122.5 billion and EUR 194.2 billion in 2001 and 2002, respectively, with a concomitant decrease of errors and omissions. For January 2003, net inflows in euro area debt instruments have been revised upwards by EUR 6.7 billion. The European Central Bank and the European Commission (Eurostat) each disseminate a press release on the same day on the quarterly balance of payments for the euro area and the EU15 (   ). In line with the agreed allocation of responsibilities, the European Central Bank compiles and disseminates monthly and quarterly balance of payments statistics for the euro area, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU15. The data comply with international standards, in particular those set out in the IMF Balance of Payments Manual (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.

ECB Monthly Bulletin

Annexes

. A detailed methodological note is available on the ECB's website. The next press release on euro area balance of payments will be published on 27 May 2003.

Table 1 Table 2 Table 3

European Central Bank Press and Information Division Kaiserstrasse 29, D-60311 Frankfurt am Main Tel.: +49 69 13 44 74 55, Fax: +49 69 13 44 74 04 Internet: http://www.ecb.europa.eu

: Monthly balance of payments of the euro area. : Euro area current account - seasonally adjusted data (Euro 12). : Quarterly balance of payments data of the euro area Reproduction is permitted provided that the source is acknowledged