Euro zone current account surplus widened in May

The euro zone's seasonally adjusted current account surplus expanded in May, reaching €25.1 billion, an increase from €17.5 billion in the previous month. This growth was primarily fueled by a rise in primary income, which includes earnings from investments such as interest, profits, and dividends. This boost in primary income helped to offset a contraction in the trade surplus.

However, unadjusted figures presented a different picture, showing a deficit of €6.2 billion in May, a significant shift from the €16.7 billion surplus recorded in April. Over the twelve months leading up to May, the bloc's current account surplus represented 1.7% of its Gross Domestic Product (GDP). This figure is lower than the 2.0% recorded in the preceding twelve-month period, indicating a slight erosion of the overall external balance over the longer term.