RANKFURT (AFX) - The current account deficit in the euro area decreased to 0.8 bln eur in June from 1.3 bln a year earlier, the European Central Bank said in a statement.
It said while the goods surplus more than doubled in the period to 8.3 bln eur, this was offset by a slight fall in the surplus for services to 0.5 bln eur and increases in both the income and current transfer deficits.
The income deficit rose to 3.2 bln eur from 1.5 bln eur in May, while for transfers it rose to 6.4 bln eur from 5.1 bln.
In the first half of 2001, the cumulated current account deficit declined to 11.2 bln eur, 9.5 bln eur lower than in the corresponding period last year.
It said according to seasonally adjusted data for the current account, both export and import values of goods grew strongly during the second half of last year, but both stagnated in the first half of 2001.
Imports in recent months have been below their levels of late 2000, the ECB said.
It said the stagnation in imports is due to the deceleration in euro area domestic demand, as well as the fall in import prices in the first half of 2001.
In the financial account, combined direct investment and portfolio investment recorded net inflows of 19.8 bln eur in June, compared with net outflows 15.5 bln in May. This recovery reflects strong foreign investment in euro area securities, the ECB said.
Direct investment recorded net outflows in June of 7.9 bln eur due to a "muted" level of direct investment by euro zone residents abroad. Portfolio investment inflows amounted to 27.7 bln eur.