The FINANCIAL — The EU28 seasonally adjusted current account of the balance of payments recorded a surplus of €62.0 billion (1.6% of GDP) in the second quarter of 2018, down from a surplus of €68.2 billion (1.7% of GDP) in the first quarter of 2018 and up from a surplus of €41.3 billion (1.1% of GDP) in the second quarter of 2017, according to estimates released by Eurostat, the statistical office of the European Union.
In the second quarter of 2018 compared with the first quarter of 2018, based on seasonally adjusted data, the surplus of the goods account decreased (+€24.6 bn compared to +€37.7 bn). The surplus of the services account grew (+€54.0 bn compared to +€50.6 bn), as did the surplus in the primary income account (+€5.1 bn compared to +€0.8 bn). The deficit of the secondary income account increased (-€21.8 bn compared to -€20.9 bn), as did the deficit of the capital account (-€3.5 bn compared to -€1.6 bn).
In the second quarter of 2018, based on non-seasonally adjusted data, the EU28 recorded external current account surpluses with the USA (+€44.7 bn), Switzerland (+€16.0 bn), offshore financial centres (+€10.5 bn), Hong Kong (+€7.8 bn), Canada (+€6.7 bn), Brazil (+€5.4 bn) and India (+€0.3 bn). Deficits were registered with China (-€17.3 bn), Russia (-€9.5 bn) and Japan (-€6.2 bn).
Based on non-seasonally adjusted data, direct investment assets of the EU28 dropped in the second quarter of 2018 by €60.4 bn, as did direct investment liabilities by €37.7 bn. As a result, the EU28 was a net recipient of direct investment in the second quarter of 2018 by €22.7 bn. Portfolio investment recorded a net inflow of €90.5 bn, and for other investment there was a net outflow of €37.2 bn.
Current account of Member States (including intra-EU flows)
As concerns the total (intra-EU plus extra-EU) current account balances of the EU28 Member States, based on available non-seasonally adjusted data, sixteen recorded surpluses, eleven deficits and one was in balance in the second quarter of 2018. The highest surpluses were observed in Germany (+€63.8 bn), the Netherlands (+€16.8 bn), Italy (+€10.5 bn), Ireland (+€10.2 bn) and Denmark (+€3.6), and the largest deficits in the United Kingdom (-€20.7 bn), Romania (-€2.6 bn) and Belgium (-€2.4 bn).