Euro zone investments surged in July, ECB says

Bloc’s current account surplus narrowed due to lower trade surplus

European Central Bank president Mario Draghi.   For the latest 12 months, the euro zone’s current account surplus widened to 3.2 per cent of the bloc’s GDP from 3 per cent a year earlier.
European Central Bank president Mario Draghi. For the latest 12 months, the euro zone’s current account surplus widened to 3.2 per cent of the bloc’s GDP from 3 per cent a year earlier.

Investments in the euro zone surged in July but the bloc's current account surplus narrowed, primarily on a lower trade surplus, the European Central Bank said on Monday.

The 19-member currency bloc’s adjusted current account surplus shrank to €21 billion in July from €29.5 billion a month earlier, while unadjusted direct and portfolio investments jumped to €72.1 billion from €6 billion in June.

Net portfolio investments, surging to €52.8 billion from €11.6 billion, accounted for the bulk of the increase but direct investments also contributed significantly, rising to a net inflow of €19.3 billion from an outflow of €5.6 billion in June.

For the latest 12 months, the current account surplus widened to 3.2 per cent of the bloc’s GDP from 3 per cent a year earlier. – (Reuters)