Monthly developments in July 2003 and revisions for June 2003

Seasonally adjusted current account in balance in July

Compared with June 2003, the seasonally adjusted current account balance declined by EUR 2.1 billion in July. This was because the rise (of EUR 1.9 billion) in the goods surplus was more than offset by increases in the deficits registered for income (up by EUR 0.9 billion) and current transfers (up by EUR 3.0 billion). The services balance remained broadly unchanged.

In July 2003 the seasonally adjusted current account of the euro area was equal to zero (a surplus of EUR 1.2 billion in non-seasonally adjusted terms). This reflected surpluses in both the goods (EUR 10.9 billion) and services (EUR 0.8 billion) balances, offset by deficits in income (EUR 5.3 billion) and current transfers (EUR 6.5 billion).

Euro area balance of payments: 12-month cumulated flows (Euro 12; EUR billions) ------ net direct investment –– net portfolio investment

––– current account balance             

Net outflows in bonds and notes in July

The net outflows in direct investment (EUR 3.6 billion) primarily resulted from net outflows in equity capital (EUR 1.9 billion), with euro area residents increasing their assets abroad (EUR 5.9 billion) by more than non-residents investing in the euro area (EUR 4.0 billion). Other investment of the monetary financial institution (MFI) sector (excluding the Eurosystem) recorded net inflows of EUR 46.4 billion, largely reflecting a decrease in the MFIs' short-term external assets (which stood at EUR 48.8 billion). Net outflows of EUR 13.1 billion were recorded for the "other sectors", reflecting both an increase in the assets of euro area residents vis-à-vis non-residents and a decrease in their liabilities in this category. Template on international reserves and foreign currency liquidity

Data revisions

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

ECB Monthly Bulletin

Annexes

In the financial account, combined direct and portfolio investment showed a net outflow of EUR 38.9 billion in July 2003, which mainly reflected net outflows in portfolio investment (EUR 35.3 billion). The net outflows in portfolio investment (EUR 35.3 billion) stemmed mainly from net purchases of foreign bonds and notes by residents (EUR 28.4 billion) that coincided with net sales of euro area bonds and notes by non-residents (EUR 16.3 billion). These net outflows were only partly offset by net inflows in money market instruments (EUR 4.1 billion) and in equity portfolio investment (EUR 5.2 billion). Financial derivatives registered net outflows of EUR 2.8 billion, while reserve assets decreased by EUR 1.6 billion in July 2003 (excluding valuation effects). The stock of the Eurosystem's reserve assets stood at EUR 328.9 billion at the end of July 2003 (   ). In addition to the update for July 2003, this press release incorporates revisions for June 2003. The revisions had a negligible impact on the net figures. In portfolio investment, net inflows decreased by EUR 1.6 billion to EUR 12.9 billion; this mainly stemmed from a reduction of EUR 1.3 billion in debt instrument liabilities. The results up to July 2003 will also be published in the October 2003 issue of the . A detailed methodological note is available on the ECB's website. The next press release, for August 2003, will be published on 24 October 2003.

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