Monthly developments in April 2003 and revisions for March 2003

Small decrease in the seasonally adjusted euro area current account deficit

Compared with the previous month, the seasonally adjusted current account deficit showed a small decline in April (by EUR 0.5 billion). This development was accounted for mainly by an increase in the goods surplus (by EUR 8.1 billion) that exceeded the decline in the services surplus and the increase in the deficits for income and current transfers in the same period. The larger goods surplus in April was broadly in line with the average of the previous six months. Meanwhile, the increase in the income deficit largely resulted from a rise in euro area residents' payments abroad, mostly in the form of dividends and interest.

The seasonally adjusted euro area current account recorded a deficit of EUR 1.0 billion in April 2003 (EUR 8.1 billion in non-seasonally adjusted terms). This reflected the deficits registered for income (EUR 7.1 billion) and current transfers (EUR 5.3 billion), which were not fully offset by the surpluses for goods (EUR 11.0 billion) and services (EUR 0.3 billion).

Sizeable flows in direct and portfolio investment

Although net portfolio investment flows were relatively small, there were significant, yet partly offsetting, movements among the gross flows in debt instruments. In particular, while bonds and notes registered large net outflows in April - stemming from net purchases of foreign bonds and notes by euro area investors (EUR 17.2 billion) - money market instruments recorded substantial net inflows in both assets (net sales by euro area residents of EUR 6.7 billion) and liabilities (net purchases by non-euro area residents of EUR 11.6 billion). Financial derivatives registered net outflows of EUR 4.7 billion, while reserve assets decreased by EUR 0.5 billion in April 2003 (excluding valuation effects). The stock of the Eurosystem's reserve assets stood at EUR 332.4 billion at the end of April 2003 ( 

In the financial account, combined direct and portfolio investment registered net outflows of EUR 14.4 billion in April 2003, mainly as a result of significant net outflows in direct investment (EUR 19.8 billion). Portfolio investment, on the other hand, recorded net inflows (EUR 5.4 billion). The net outflows of direct investment in April were largely related to inter-company loans provided by euro area firms to their foreign affiliates (EUR 15.8 billion). Other investment of the monetary financial institution (MFI) sector (excluding the Eurosystem) recorded net inflows (EUR 23.2 billion), mainly reflecting a substantial increase in the short-term external liabilities of MFIs (EUR 53.0 billion). Other investment of the money-holding sectors (the "other sectors") showed a slight increase in external assets (EUR 9.0 billion) - mostly reflecting deposits abroad - and an increase in borrowing by euro area companies from abroad (EUR 5.2 billion).

Template on international reserves and foreign currency liquidity

Data revisions

Additional information on the euro area b.o.p.

ECB Monthly Bulletin

Annexes

 ). In addition to the updates for April 2003, this press release incorporates minor revisions for March 2003 The results up to February 2003 will also be published in the next issue of the . 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.

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