STAT/06/76
13 June 2006
First estimate for the first quarter of 2006 EU25 current account deficit 34.3 bn euro 11.2 bn euro surplus on trade in services The EU25 external current account1 recorded a deficit of 34.3 billion euro in the first quarter of 2006, as compared to a deficit of 17.9 billion euro in the first quarter of 2005 and a deficit of 32.0 billion euro in the fourth quarter of 2005.
In the first quarter of 2006 the EU25 external balance of trade in services recorded a surplus of 11.2 billion euro as compared to a surplus of 8.8 billion euro in the first quarter of 2005 and a surplus of 14.4 billion euro in the fourth quarter of 2005.
These provisional data2, issued by Eurostat, the Statistical Office of the European Communities, will be subject to revision.
Balance of payments euro-indicators for EU253
(in bn euro)
Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 EU25 current account balance -17.9 -21.2 -23.1 -32.0 -34.3 EU25 balance of trade in services 8.8 15.9 8.7 14.4 11.2 EU25 current account balance as % of GDP -0.7% -0.8% -0.9% -1.1% -1.3% Source: Eurostat Balance of payments euro-indicators for the euro area4
(in bn euro)
Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Euro area current account balance 2.2 -11.2 -1.4 -12.3 -11.4 Euro area balance of trade in services 4.0 10.3 9.6 10.3 2.5 Euro area current account balance as % of GDP 0.1% -0.6% -0.1% -0.6% -0.6% Source: European Central Bank (ECB Press Release May 2006)
Balance of payments euro-indicators for the euro area4 - Monthly data5
(in bn euro)
Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Dec 05 Jan 06 Feb 06 Mar 06 Euro area current account balance 4.3 -10.5 -2.9 2.2 3.0 -2.7 -1.6 -6.5 -5.6 -0.2 -9.7 -0.4r -1.3 Euro area balance of trade in services 1.5 2.3 3.3 4.7 4.5 1.5 3.6 4.6 2.7 3.0 0.1 1.8r 0.6 r: revised Source: European Central Bank (ECB Press Release May 2006) The current account covers all transactions (other than those recorded in the financial account) occurring between resident and non-resident entities. Within the current account four main types of transactions are separately identified:The goods account covers general merchandise, goods for processing, repairs on goods, goods procured in ports by carriers and non-monetary gold. Exports and imports of goods are recorded on a f.o.b./f.o.b. basis, i.e. at market value at the customs frontiers of exporting economies, including charges for insurance and transport services up to the frontier of the exporting country.
The services account consists of the following items: transportation services performed by EU residents for non-EU residents, or viceversa, involving the carriage of passengers, the movement of goods, rentals of carriers with crew and related supporting and auxiliary services, travel, which includes primarily the goods and services EU travellers acquire from non-EU residents, or vice versa, and other services, which comprise those service transactions such as communication services, insurance, financial services etc.
The income account covers two types of transactions: compensation of employees paid to non-resident workers or received from non-resident employers, and investment income accrued on external financial assets and liabilities.
The current transfers account includes general government current transfers, e.g. transfers related to international co-operation between governments, payments of current taxes on income and wealth, etc., and other current transfers, e.g. workers’ remittances, insurance premiums - less service charges - and claims on non-life insurance companies.
The EU25 balance of payments euro-indicators (first estimates for the reference quarter) are based on figures (current account and trade in services balances) provided by the Member States to Eurostat two months after the reference quarter, and should be considered as provisional. This News Release corresponds to these first estimates. Eurostat then produces a second release once the quarterly data are transmitted to Eurostat, on a more complete basis, three months after the reference quarter. Figures may also be subject to revision when data for later quarters are transmitted by the Member States. The second release for the first quarter of 2006 will be issued on 25 July 2006. In line with the agreed allocation of responsibility, the European Central Bank (ECB) (ecb.europa.eu, section statistics/statistical press releases) is in charge of compiling and disseminating monthly and quarterly balance of payments statistics for the euro area, whereas the European Commission (Eurostat) focuses on quarterly and annual aggregates of the EU. The data comply with international standards, in particular those set out in the IMF Manual on Balance of Payments Statistics (5th edition). The aggregates for the euro area and the EU are compiled consistently on the basis of Member States' transactions with residents of countries outside the euro area and the European Union respectively. Euro area: Belgium, Germany, Spain, Greece, France, Italy, Ireland, Luxembourg, the Netherlands, Austria, Portugal and Finland. The EU25 includes also the Czech Republic, Denmark, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia, Sweden and the United Kingdom. Monthly data may not add up to quarterly data due to rounding. Issued by: Eurostat Press Office Tim ALLEN BECH Building L-2920 LUXEMBOURG Tel: +352-4301-33 444 Fax: +352-4301-35 349 eurostat-pressoffice@ec.europa.eu For further information on data: Stefaan PAUWELS Tel: +352-4301-32 641 Fax: +352-4301-33 859 stefaan.pauwels@ec.europa.eu Eurostat news releases on the Internet: http://ec.europa.eu/eurostat 
