--France posts Apr adj current account deficit of 9 mln euros
--French Apr unadjusted current account deficit 2.3 bln euros
--French Mar adj current acct surplus revised up to 3.0 bln euros
--French Mar unadj current acct surplus revised up to 3.1 bln euros
Paris, June 19 (BridgeNews) - France unexpectedly posted a current account deficit in April amid a marked decline in goods and services exports, the French Finance Ministry reported Tuesday. The April current account deficit was 900 million euros on an adjusted basis, and 2.3 billion euros in unadjusted terms.
Within the current account, France's services surplus rose slightly in April to 1.7 billion euros (see table .6666). That was more than offset by a goods deficit deficit of 100 million euros--down from a revised 1.3 billion euro surplus in March. A sharper-than-expected drop in exports of French goods and services contributed to the decline, as well as a jump in investment revenues paid out to foreign investors, the ministry said.
A 1.9 billion euro deficit showed up in revenue transfers, following a March surplus, while unilateral transfers also posted a 1.9 billion euro deficit, following a 1.6 billion euro drop the month before. The financial account showed a net inflow of direct investment capital to France of 2.0 billion euros compared with an outflow of 8.8 billion euros in March.
The ministry said foreign investment in France jumped some 5.4 billion euros in April, while French investment abroad slumped to just 1.8 billion euros. French investors sharply cut their purchases of foreign stocks, while non-resident investment in French stocks also slipped.
Over the first four months of the year, foreign direct investment in France was 12.6 billion euros, compared with 4.2 billion during the same period last year. Foreign investment in French stocks jumped 71% between January and April to 56.4 billion euros, the ministry said. Finance ministry officials generally believe that with a less dynamic world economy, payment flows this year are unlikely to match the exceptional levels seen last year. France should nevertheless be able to maintain a healthy surplus for the year, if somewhat reduced, underpinned by tourism and revenue transfers from French investments abroad, they add. France is still second only to Japan in the size of its current account surplus, the ministry stressed.