The eurozone current account registered a deficit of E6.4bn in January this year, compared with a close-to-balance position of a deficit of E0.1bn in the year-earlier period, the European Central Bank (ECB) said today. This development resulted mainly from a E3.7bn increase in the income deficit and from a reduction in the goods and current transfers surpluses, the ECB said. The income deficit widened to E10.1bn from E6.4bn, the goods surplus fell to E1.1bn from E3.3bn, and the current transfers surplus fell to E3.1bn from E5.6bn, it said.
The services deficit narrowed to E0.5bn from E2.4bn. The ECB said that on a seasonally-adjusted basis the current account showed a surplus of E0.4bn in January compared to a surplus of E7.6bn in December. This change resulted mostly from an increase in income debit flows and in the net current transfers deficit, it said. In the financial account, combined direct and portfolio investment recorded net outflows of E16.5bn in Jan 2003, which mainly reflected "sizeable" net outflows of E14.7bn in portfolio investment, it said. //www.fxcentre.com/