Eurozone current account improves in August: ECB

19th October 2011, Comments 0 comments

The eurozone's current account balance improved slightly in August to a deficit of 5.0 billion euros ($6.9 billion), the European Central bank said on Wednesday.

The ECB revised the figure for July in the 17-nation area to a deficit of 6.8 billion euros from an initial estimate of 12.9 billion euros.

The current account on the balance of payments, which includes imports and exports in both goods and services plus capital transfers, is a closely tracked indicator of a country's or area's ability to pay its way in the world.

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

The data, which have historically been subject to large revisions, showed that the eurozone's deficit has widened sharply in the past year.

Over the last 12 months, the deficit total amounted to 54.9 billion euros, or 0.6 percent of gross domestic product. This is far bigger than in the previous year, when the accumulated deficit came to 24.2 billion euros.

The eurozone last posted a current account surplus in January 2010.

© 2011 AFP

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