EUROZONE DATA
The Eurozone seasonally adjusted current account balance was E27.0bln in November, while October’s reading saw a E4.2bln upward revision to E30.2bln. As a percentage of nominal GDP, the 12-month rolling CA surplus remained at 2.8%, its highest since September 2021.
- This comprised of a 2.6% goods trade surplus (vs 2.5% prior), 1.1% services surplus (vs 1.1% prior), 0.2% primary income surplus (vs 0.3% prior) and 1.1% secondary income deficit (vs 1.1% prior).
- Although the goods trade surplus is also at its highest since late-2021, yesterday’s merchandise trade data highlighted that the composition of goods trade is not conducive for growth. Both (extra-EZ) exports and imports have been on a declining trend since early 2023, with weak imports of manufactured and machinery/transport goods a sign of weak investment intentions in the region.
- The services surplus is unsurprisingly dominated by Southern European countries (e.g. Greece, Portugal and Spain), which rely on tourism to support activity.
- In the financial account (again, 12-month rolling as a % of nominal GDP), net direct investment outflows were 1.1% (vs 1.2% prior) and net portfolio investment inflows were 1.5% (vs 1.2% prior).
- That sees the broad balance (CA + net direct investment inflows + net portfolio investment inflows) rise to 3.2% (vs 2.9% prior), the highest since March 2020.
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