25 April 2006, 12:30  Euro zone current account deficit widens in Feb

The euro zone current account deficit widened in February as a result of an increase in the deficits in the income account and on current transfers. The seasonally adjusted current account deficit rose to 5.6 bln euro in February from 0.7 bln eur in January, the European Central Bank said. The January deficit was revised from a provisional estimate of 3.3 bln euro. Economists polled by AFX News were looking for a February deficit of 3.0 bln euro. The ECB said the total current account deficit for the 12 months to February was 33.3 bln eur, equivalent to around 0.4 pct of GDP. The ECB said the February deficit mainly reflected a 6.0 bln euro deficit in current transfers, which cover workers' remittances and transfers between governments. The current transfers deficit increased from 3.7 bln euro in January. The income account was also in deficit, by 2.7 bln euro, compared with a January deficit of just 0.1 bln. The income account covers investment income flows and wages paid to workers by employers based in a different economy. These deficits were partially offset by surpluses of 2.6 bln euro in services trade and 0.5 bln euro in goods trade.

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