FRANKFURT (AFX) - The current account deficit in the euro area increased to 2.9 bln eur in November from 2.1 bln a year earlier, the European Central Bank said in a statement.
This was due to a reduction of the goods surplus, which together with an increase in the deficit for both income and current transfers, more than offset the decrease in the deficit for services.
The cumulative deficit on the current account in the first eleven months of 2000 stood at 23.6 bln eur, compared with a deficit of 1.9 bln for the corresponding period in 1999, the bank said.
This increase was largely due to a decrease in the goods surplus, down to 54.6 bln eur from 77.9 bln a year earlier.
In the financial account, the main development was a significant decline of net direct investment outflows to 9.5 bln eur, reflecting a relatively high inward direct investment by non-euro zone residents of 16.3 bln eur, it said.
Portfolio investment recorded net outflows of 3.9 bln eur, with combined net direct and portfolio investment outflows down 13.4 bln eur in November, compared with an average of 23.6 bln in the three months prior to November.
The bank said that for the first 11 months of the year there were combined net direct and portfolio investments of 132.5 bln eur, compared with 142.8 bln in the corresponding period the previous year.
A key feature is that in 2000 the balance for bonds and notes turned to net inflows of 108.8 bln, in contrast to net outflows of 37.0 bln in 1999, it noted.
Errors and omissions amounted to 11.0 bln eur in November, and to 0.8 bln in the first eleven months of 2000, it said.