The euro area posted a current account surplus of €20 billion (vs €40.4 billion expected) in April, down from €51 billion in March, as goods and services surpluses narrowed and the secondary income deficit widened.

• The goods balance dropped from €44 billion in April to €30 billion in March as exports fell -€26 billion and imports dropped -€12 billion.
• The services and primary income balances both declined as well by -€6 billion and -€7 billion.
• The 12-month current account surplus rose to €419 billion (2.8% of GDP), up from €339 billion (2.3%) a year earlier, led by stronger goods (+€42B), services (+€24B), and primary income (+€23B).
• Euro area residents and non-residents each made €690 billion in net portfolio investment purchases in the 12 months to April.
• Direct investment saw euro area residents shift to net investments of €134 billion (vs -€192 billion YoY), while non-residents disinvested €20 billion (vs -€334 billion YoY).
• In other investment, euro area residents’ net asset acquisitions surged to €403 billion, nearly triple the amount from a year earlier.
• Net external assets of euro area MFIs increased €452 billion over the year, supported by current account strength and portfolio inflows.