Developments in the euro area current account during the pandemic

Michael Fidora, Fausto Pastoris and Martin Schmitz

Economic Bulletin Boxes, 2021, vol. 4

Abstract: Amid elevated volatility in economic activity and international trade due to the pandemic, the overall euro area current account surplus narrowed only slightly in 2020 compared with 2019, from 2.3% to 2.2% of GDP. However, external transactions in the current account contracted sharply during the first half of the year, following the outbreak of the pandemic and the introduction of measures to contain its spread. The economic repercussions of the pandemic were particularly visible in the trade in services balance, where travel restrictions led to a sharp reduction in the euro area surplus on travel services. JEL Classification: F32, F41

Keywords: Current account balance; external imbalances; international trade; pandemic (search for similar items in EconPapers)
Date: 2021-06
Note: 491968
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