FRANKFURT (AFX) - The current account deficit in the euro area increased to 2.8 bln eur in March from a zero balance a year earlier, the European Central Bank said in a statement.
It said this was primarily due to an increase in the deficit for services, current transfers and income, which more than compensated for the higher surplus in the goods accounts.
The capital account surplus stood at 0.5 bln eur, compared to 1.5 bln a year earlier, it said.
In the financial account, direct investment recorded net outflows of 42.3 bln eur in March. Portfolio investment recorded net inflows in March of 6.1 bln eur.
Elsewhere in the current account, net inflows in financial derivatives amounted to 3.9 bln eur in March 2001. Net inflows to other investment amounted to 50.2 bln eur, it said.
The ECB said for the first quarter as a whole the current account deficit stood at 9.2 bln eur, compared with a deficit of 11.5 bln eur for the same period last year.
It said the reduction in the current account deficit was mainly due to an increase in the goods surplus and a lower deficit for current transfers.