Euro boosts EU current account surplus

Stronger exports and a surging euro currency sent the euro zone's current account balance of payments into surplus last year, …

Stronger exports and a surging euro currency sent the euro zone's current account balance of payments into surplus last year, the European Central Bank said today.

The surplus for 2002 was €62.0 billion - in contrast tothe shortfall of €13.8 billion the year before.

The shift, equivalent to 1.0 per cent of the 12-nation euroarea's gross domestic product, resulted from a 2.4 per centincrease in exports and a 3.4 per cent drop in imports, which led to a substantial increase in the net surplus on traded goods, the ECB said.

Over that period, the euro has risen by over 17.9 per centagainst the dollar, making imports cheaper.

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It was the first current account surplus for theregion since the euro currency was launched in 1999, although in 1998 the equivalent region had a €60.3 billion surplus,according to ECB figures.

But analysts doubt the sizeable improvement can besustained.