Strong Current Account Performance
In October 2023, the Euro area’s current account marked a substantial surplus of €34 billion, exceeding expectations and the previous month’s €31 billion. This performance indicates a notable improvement over the past year, as the current account shifted from a €56 billion deficit to a €218 billion surplus, equating to 1.5% of the Euro area’s GDP.
The drop in import prices for goods over the past year or so is the main thing to note amid the recovery in euro area current account back to normal levels this year. That owes to a drop in energy prices as compared to last year, which were skyrocketing due to the Russia-Ukraine conflict.
Financial Account Developments
The financial account also showed significant activity. Euro area residents acquired €398 billion in non-euro area securities, while non-residents…
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