Current account
The EU non-seasonally adjusted external current account recorded a surplus of €122.5billion (+2.9% of GDP) in the third quarter of 2023, compared with a deficit of €34.3billion (-0.9% of GDP) in the third quarter of 2022, according to the estimates released by Eurostat.
Figure 1: Balances of EU current account main items as share of GDP, 2023Q3 (%)
Source: Eurostat (bop_gdp6_q)
In the third quarter of 2023 compared with the third quarter of 2022, based on non-seasonally adjusted data, the goods account turned from a deficit to a surplus (+€63.3billion compared with -€85.7billion), while the surplus of the services account decreased (+€57.0billion compared with +€59.5billion). The surplus of the primary income account increased (+€21.8billion compared with +€11.2billion), while the deficit of the secondary income account slightly decreased (-€19.6billion compared with -€19.3billion). In the capital account, the EU recorded a surplus of +€0.4billion, compared with a surplus of +€3.7billion in the third quarter of 2022.
Looking at values of credit and debit transactions by components of the current account, it can be observed that for goods and services credit and debit transactions decreased in the third quarter of 2023 compared with the same quarter of the previous year. The highest decrease was recorded for debit transactions of goods account (-25.4%) and credit transactions of goods account (-6.8%), followed by credit and debit transactions of services account (-1.3% and -0.7%, respectively). Both credit and debit transactions of primary income account increased (+27.4% and +24.0%, respectively). Debit transactions of the secondary income account increased as well (+0.6%), whereas credit transactions of the secondary income account remained unchanged.
Table 1: Main items of the current and capital account, EU, 2023Q3 (€ billion)
Source: Eurostat (bop_eu6_q)
The surplus recorded in the services account (+€57.0billion) was mainly the result of surpluses in telecommunications, computer and information services (+€42.2billion), travel (+€26.3billion), transport (+€6.9billion), financial services (+€4.1billion) and manufacturing services on physical inputs owned by others (+€3.2billion), partially offset by deficits in charges for the use of intellectual property (-€24.5billion) and other business services, which include research and development, professional, management consulting, technical, trade-related and other business services (-€9.3billion).
Table 2: Trade in services with the rest of the world, EU, 2023Q3 (€ billion)
Source: Eurostat (bop_eu6_q)
Spain, France, Greece (all of them mainly with travel), Poland (mainly with other business services and travel), Portugal (mainly with travel), the Netherlands (mainly with transport and other business services), Italy (mainly with travel) and Sweden (mainly with telecommunications, computer and information services) contributed the most to the surplus. Ireland (mainly due to deficits in charges for the use of intellectual property and other business services), Malta (mainly due to deficit in other business services) and Germany (mainly due to deficit in travel) were the only EU Member States that reported deficits in trade in services with extra-EU economic counterparts, other 23 EU Member States reported surpluses and one had its services account in balance.
The primary income surplus (+€21.8billion) was the result of the surpluses in direct investment income (+€19.4billion), compensation of employees (+€7.1billion) and other investment income (+€3.7billion), partially offset by a deficit in portfolio investment income (-€13.9billion).
Table 3: Primary income with the rest of the world, EU, 2023Q3 (€ billion)
Source: Eurostat (bop_eu6_q)
Geographical breakdown of current account transactions
In the third quarter of 2023, the EU external current account recorded a surplus with the United Kingdom (+€69.2billion), the United States (+€33.6billion), Switzerland (+€16.1billion), Canada (+€11.2billion), Brazil (+€7.1billion), Hong Kong (+€6.9billion), offshore financial centres[1] (+€6.3billion), Russia (+€3.4billion) and Japan (+€0.6billion). Deficits were registered with China (-€35.6billion) and India (-€0.6billion).
The EU recorded highest surpluses in goods account with the United States (+€61.4billion), the United Kingdom (+€37.7billion), offshore financial centres (+€7.9billion), Canada (+€7.3billion), Switzerland (+€3.2billion), Hong Kong (+€3.0billion) and Japan (+€0.8billion), while deficits were registered with China (-€48.8billion), Brazil (-€2.3billion), India (-€1.9billion) and Russia (-€1.6billion). In the services account, the surpluses took place with the United Kingdom (+€19.2billion), Switzerland (+€15.1billion), China (+€4.3billion), Japan (+€4.0billion), Brazil (+€2.9billion), Hong Kong (+€2.6billion), Russia (+€2.1billion) and Canada (+€1.3billion), the deficits with the United States (-€24.0billion), offshore financial centres (-€1.7billion) and India (-€1.0billion). Highest surpluses in the primary income account occurred with the United Kingdom and China (both +€9.4billion), Brazil (+€6.8billion), Russia (+€3.0billion), India and Canada (+€2.7billion), while deficits were recorded with Japan (-€4.2billion), the United States (-€3.3billion) and Switzerland (-€1.9billion). In the secondary income account, surpluses were registered with the United Kingdom (+€2.9billion) and Japan (+€0.1billion), while highest deficits were recorded with the United States, offshore financial centres (both -€0.5billion), China, India, Switzerland (all -€0.4billion) and Brazil (-€0.3billion).
Table 4: Balances with major economic partners, EU, 2023Q3 (€ billion)
Source: Eurostat (bop_eu6_q)
Financial account
In the third quarter of 2023 there was a net increase of financial assets held abroad by EU residents by €106.4billion and a net increase of liabilities of EU residents to the rest of the world by €37.2billion. The EU was the net recipient of direct investment from the rest of the world with net inflows of €3.3billion. Direct investment assets held abroad by EU investors decreased by €1.2billion, while direct investment liabilities of the EU to the rest of the world increased by €2.1billion.
Table 5: Financial account transactions with the rest of the world, EU, 2023Q3 (€ billion)
Source: Eurostat (bop_eu6_q)
Portfolio investment recorded a net inflow of €35.0billion. Portfolio investment assets abroad increased by €74.8billion, as did portfolio investment liabilities of the EU to the rest of the world by €109.8billion. Other investment recorded a net outflow of €110.7billion. EU investors increased their other investment assets held abroad by €36.0billion, while other investment liabilities of the EU to the rest of the world decreased by €74.6billion.
Current account of EU Member States (including intra-EU flows)
As concerns the total (intra-EU plus extra-EU) current account balances of the EU Member States, based on non-seasonally adjusted data, 20 Member States recorded surpluses and seven deficits in the third quarter of 2023. The highest surpluses were observed in Germany (+€69.6billion), the Netherlands (+€32.2billion), Ireland (+€20.8billion), Spain (+€10.4billion), Sweden (+€10.0billion), Italy (+€9.9billion) and Denmark (+€8.5billion), while the largest deficits in France (-€9.2billion), Romania (-€6.7billion) and Belgium (-€1.9billion).
In relation to GDP (size of the economy), the highest surpluses can be observed for Croatia (+23.6%), Ireland (+16.2%), Luxemburg (+13.7%), the Netherlands (+12.7%), Denmark (+9.5%), Sweden (+7.6%), Malta (+7.1%) and Germany (+6.7%). The largest deficits were recorded for Romania (-7.6%), Cyprus (-6.7%), Latvia (-5.3%) and Estonia (-5.0%).
Figure 2: National current account balances as share of GDP, 2023Q3 (%)
Source: Eurostat (bop_gdp6_q)
Trade in goods was the main account behind surpluses of Germany, the Netherlands, Ireland, Sweden, Italy, Denmark, Austria, Finland and Czechia and significantly contributed to a surplus of Hungary; it was as well the main account behind deficits of France, Romania, Latvia, Cyprus, and Estonia. Services account decided about the surpluses of Spain, Croatia, Portugal, Luxembourg, Poland, Greece, Slovenia, Bulgaria, Malta, Lithuania and Hungary. Primary income significantly contributed to surpluses of Germany, Sweden, Denmark and Finland, as well as to deficits of Romania, Latvia, Cyprus, Estonia and Slovakia. In secondary income account, Portugal, Croatia, Romania and Luxembourg recorded the highest surpluses, while the highest deficits had Germany, France, Italy and Spain.
International investment position of EU Member States
In the third quarter of 2023, external liabilities were higher than assets in 16 EU Member States (representing negative net international investment position), while external assets exceeded liabilities in eleven Member States (Belgium, Denmark, Germany, Italy, Luxembourg, Malta, the Netherlands, Austria, Slovenia, Finland and Sweden). Germany recorded the highest value of net IIP of €2782.8billion, due to direct, portfolio and other investment positions, being followed by the Netherlands (€694.7billion), Belgium (€360.2billion), Denmark (€211.9billion) and Sweden (€201.6billion), mainly due to direct investment in case of the Netherlands, Denmark and Sweden and portfolio investment in case of Belgium. France had the highest net international indebtedness among the EU Member States, at €776.9billion, mainly due to its position in portfolio investment. Greece and Ireland recorded high indebtedness levels, which were above 100% of GDP, mainly due to other investment in case of Greece and portfolio investment in case of Ireland.
The detailed tables 
are available here.
Data sources
The methodological framework followed in the compilation of the Balance of Payments and International Investment Position is that defined in the sixth edition of the International Monetary Fund Balance of Payments and International Investment Position Manual (BPM6), published in 2009.
In the compilation of BOP, responsibility is shared between Eurostat and the ECB. Eurostat is responsible for monthly BOP and quarterly and annual BOP, IIP, ITSS and FDI aggregates of the EU, as well as on detailed ITSS data also for the euro area, whereas the European Central Bank (ECB) is in charge of compiling and disseminating the euro area monthly and quarterly balance of payments, as well as quarterly international investment position statistics.
Monthly BOP data are available starting from January 1999. Quarterly BOP items are available from first quarter 1982, while quarterly IIP from fourth quarter 1993. Data are available for the European Union, EU Member States, euro area, EFTA and candidate countries. Data are compiled and disseminated for transactions and positions of the total economy vis-à-vis the rest of the world and major economic counterparts (Switzerland, Russia, the USA, Canada, Brazil, China, Hong Kong, India, Japan and Offshore financial centres[2]. Additionally, for financial account transactions and positions, as well as related income, data are available with a sector breakdown.
Context
In line with the agreed allocation of responsibility, the European Central Bank (ECB) is in charge of compiling and disseminating monthly and quarterly balance of payments statistics for the euro area, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU. The aggregates for the euro area and the EU are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively.
