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EU current account deficit eases in Q2

The European Union’s current account deficit eased to €14.6 billion ($20.5 billion) in the Q2, the EU’s statistics bureau Eurostat said on Thursday.

The 27-nation bloc recorded a deficit of €18.9 billion ($26.5 billion) in the Q2 of 2006 and a deficit of €28.1 billion ($39.4 billion) in the Q1 of this year. Compared to the same period of last year, a lower deficit was registered in the goods account in the Q2, down from €41.2 billion ($57.7 billion) to €33.9 billion ($47.5 billion), while the deficit of the current transfers account rose from €10.9 billion ($15.3 billion) to €12.3 billion ($17.3 billion).

The EU’s surplus on trade in services increased from €18.7 billion ($26.2 billion) to €23.6 billion ($33.1 billion), while the surplus of the income account shrank from €14.5 billion ($20.4 billion) to €8 billion ($11.3 billion). Eurostat said the surplus in the services account was mainly the result of surpluses in “other business services,” including merchanting and operational leasing services, which amounted to €10.4 billion ($14.6 billion).

Financial services and transportation each contributed €7.7 billion ($10.8 billion) and €4.5 billion ($6.4 billion). In the Q2, the EU recorded the largest surplus in its current account with the US, which was €22.1 billion ($31 billion), and the biggest deficit with China, which was €30.4 billion ($42.6 billion), according to Eurostat. (people.com.cn)