Eurozone April balance of payments back in deficit: ECB

22nd June 2010, Comments 0 comments

The eurozone's balance of payments fell back into the red in April, posting a deficit of 5.1 billion euros (6.3 billion dollars), the European Central Bank said on Tuesday.

In March, the balance of payments, an overall measure of all current payments into and out of a country or region, posted a surplus of 1.5 billion euros, revised data from the ECB showed.

The figures are often revised sharply higher or lower, and the March figure was initially reported as a surplus of 1.7 billion euros.

On the financial account, the ECB reported net inflows of 18.5 billion euros in April, as more money was ploughed into eurozone assets than was invested abroad by eurozone companies and institutions.

The balance of payments, which includes payments for imports and exports of trade in goods and services, is a closely watched indicator of an area's ability to pay its way in the world.

It is important for the long-term confidence of investors and trading partners.

The overall figure for the eurozone combines surpluses from strong exporting nations such as Germany with the balances of countries that have structural external deficits.

On a 12-month cumulative basis, the eurozone's current account showed a provisional deficit of 32.3 billion euros, or around 0.4 percent of the 16-nation bloc's gross domestic product.

© 2010 AFP

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