Eurostat: Current account imbalances lessen
Overview:
The Euro area recorded a small current account surplus in Q3 2009 according to Eurostat data. This follows a 0.9% of GDP deficit in Q2. The EU-27 recorded a current account deficit of 1.1% of GDP in Q3 compared to a 1.7% of GDP deficit the quarter earlier. Balance of payments data show both narrowing external imbalances at Euro area and EU-27 levels but also a continued huge disparity between individual countries. Germany and the Netherlands, for instance, continue to record current account surpluses while Southern European and Transition economies tend to run large deficits. Some of these variations are lessening due to the global crisis. Savage external account adjustments in Eastern European countries are occuring as a sudden reduction in capital inflows has forced a large import contraction.