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Euro zone swings to a rare current account deficit in March
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FRANKFURT (Reuters) – The euro zone recorded its first
FRANKFURT (Reuters) – The euro zone recorded its first current account deficit in a decade in March on a small trade deficit and an outflow of secondary incomes, or transfers between residents and non-residents, European Central Bank data showed on Thursday.
The bloc of 19 countries sharing the euro recorded a current account deficit of 1.57 billion euros after a surplus of 15.73 billion euros a month earlier, according to adjusted figures.
In the 12 months to March, the current account surplus totalled 1.8% of the bloc’s GDP, down from 2.6% in the preceding 12 months.
(Reporting by Balazs Koranyi; editing by John Stonestreet)
A current account deficit occurs when a country's total imports of goods, services, and transfers exceed its total exports. This can indicate economic challenges and reliance on foreign capital.
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