In the first quarter of 2023, the EU seasonally adjusted current account of the balance of payments recorded a surplus of €58.3 billion (+1.4% of GDP), compared with a surplus of €23.5 billion (+0.6% of GDP) in the fourth quarter of 2022 and a surplus of €15.7 billion (+0.4% of GDP) in the first quarter of 2022, according to estimates released by Eurostat, the statistical office of the European Union.
Current and Capital accounts
In the first quarter of 2023 compared with the fourth quarter of 2022, based on seasonally adjusted data, the balance of the goods account turned from a deficit to a surplus (+€44.4 bn compared to -€9.1 bn), while the surplus of the services account decreased (+€30.6 bn compared to +€66.0 bn). The primary income account balance turned from a deficit to a surplus (+€6.3 bn compared to -€9.0 bn) and the deficit of the secondary income account decreased (-€23.0 bn compared to -€24.3 bn). During the same period, the balance of the capital account turned from a surplus to a deficit (-€9.2 bn compared to +€1.0 bn).
Main partners
In the first quarter of 2023, based on non-seasonally adjusted data, the EU recorded external current account surpluses with the United Kingdom (+€51.4 bn), Switzerland (+€22.6 bn), the USA (+€18.8 bn), Canada (+€9.6 bn), Hong Kong (+€7.3 bn), Brazil (+€6.3 bn) and offshore financial centres (+€3.5 bn). Deficits were registered with China (-€42.5 bn), India (-€3.0 bn), Russia (-€2.0 bn) and Japan (-€0.6 bn).
Financial account
Based on non-seasonally adjusted data, direct investment assets of the EU increased in the first quarter of 2023 by €49.6 bn and direct investment liabilities decreased by €49.3 bn. As a result, the EU was a net direct investor to the rest of the world by €98.9 bn. At the same time, portfolio investment recorded a net inflow of €134.1 bn, while other investment recorded a net outflow of €111.3 bn.
Current account of Member States (including intra-EU flows)
As concerns the total (intra-EU plus extra-EU) current account balances of the EU Member States, based on available non-seasonally adjusted data, fourteen Member States recorded surpluses, twelve recorded deficits and one had their current account in balance in the first quarter of 2023. The highest surpluses were observed in Germany (+€69.9 bn), the Netherlands (+€25.9 bn), Ireland (+€13.6 bn), Spain (+€10.3 bn), Denmark (+€9.2 bn), Sweden (+€7.9 bn), as well as Poland (+€5.5 bn) and Austria (+€4.8 bn). The largest deficits were recorded for France (-€11.8 bn), Italy (-€5.2 bn), Romania (-€4.0 bn), Greece (-€3.8 bn), Belgium (-€3.3 bn) and Croatia (-€2.6 bn).
