France's balance of payments 2019Sep

Deterioration of the current account deficit
In 2019-Q3, the current account deficit stood at -6.2 billion euros, a deterioration of 1.4 billion compared with the previous quarter (seasonally-adjusted). The deficit in goods increased by 2.8 billion euros to reach -12.5 billion, notably due to a deterioration of non-energy goods transactions. Conversely, the services surplus reached 6.1 billion euros, i.e. up 0.8 billion from the second quarter.
The financial account balance stood at -36.6 billion euros (non-seasonally adjusted). The direct investment balance became slightly in surplus at 2.6 billion euros. Portfolio investments recorded strong net inflows of 73.2 billion euros: residents sold 21.3 billion euros of foreign securities, whereas French securities purchased by non-residents (liabilities) were stable at 51.9 billion euros. Conversely, "loans and deposits" resulted in net outflows of 31.1 billion euros.

In September, the current account balance remained largely in deficit at -2.7 billion euros after -3.0 billion in August.


Current account and GDP
(in EUR billions and in % of GDP, cumulated figures for the four-quarter period
sources : Banque de France - DGSEI ; ECB for external data)
2019-Q2 2019-Q3(*)
Amount Percentage of GDP Amount Percentage of GDP
France -15.1 -0.6 -18.5 -0.8
Germany 240.8 7,1
Spain 21.4 1.8
Italy 45.1 2.5
United Kingdom -103.3 -4.2
(*) "Cumulated figures for the four-quarter period"
Goods and services
(Cumulated figures for the four-quarter period, Percentage of GDP)
Current account
(EUR billions) SEP- 2019
(a)
Q2 2019
(a)
Q3 2019
(a)

Cum. Fig.
4 quarter
period
(a)
2018
(b)
Cum. Fig.
4 quater
period /
2018
Current account (seasonally and working-day adjusted) -2.7 -4.8 -6.2 -18.5 -15.1
Goods (1) -5.1 -9.7 -12.5 -44.5 -49.3
Energy -4.4 -10.9 -11.7 -42.8 -43.7
Goods excl. Energy -0.7 1.2 -0.8 -1.8 -5.6
Services 2.4 5.3 6.1 22.8 23.8
Travel 1.1 3.1 3.3 12.5 14.9
Transport services -0.2 -0.7 -0.5 -3.1 -4.6
Professional and management consulting services, Research and development and Technical services , trade-related and other business services 0.4 1.9 1.4 8.1 7.2
Other services (2) 1.0 1.0 1.9 5.3 6.2
Primary and secondary income (3) 0.0 -0.4 0.2 3.2 10.3
(a) Provisional data (b) Annual report 2018 data
(1) to (3) See methodological notes on page 2.
Source and production : BANQUE DE FRANCE - DGSEI
Goods
(seasonally and working-day adjusted, EUR billions)
Services
(seasonally and working-day adjusted, EUR billions)
Capital account and financial account
(EUR billions) SEP- 2019
(a)

2019-Q2
(a)
2019-Q3
(a)

Cum. Fig.
4 quarter period
(a)
2018
(b)
Capital account (brut) 0.2 -0.3 -0.5 2.5 2.1
Financial account (not adjusted) -18.2 -17.1 -36.6 -69.2 -27.3
Direct investment 2.2 -6.0 2.6 8.2 55.2
- Abroad 7.3 18.2 11.0 75.8 106.6
- In France 5.1 24.2 8.4 67.6 51.4
Portfolio investment -14.4 11.8 -73.2 -33.0 -5.0
-Assets -1.1 63.2 -21.3 67.9 19.2
-Liliabilities 13.3 51.4 51.9 100.9 24.2
Financial derivatives 1.4 0.1 1.2 -10.1 -25.9
Other investment (4) ) -3.5 -24.4 31.1 -38.1 -62.0
Reserve assets -4.0 1.4 1.7 3.8 10.4
(a) Provisional data (b) Annual report 2018 data
(4) See methodological notes on page 2
Methodological notes relating to page 1 and page 2 tables
(1) Data on trade in goods are FOB-FOB values, which means without cost, insurance and freight. The latter expenditure is recorded in the services item. Exchanges of goods include general merchandise as published by the Directorate General of Customs and Excise (DGDDI) on one side, merchanting and methodological adjustments calculated by the Banque de France, on the other side. It ensures the comparability of French balance of payments with those of other countries and its conformity with the international standards set by International Monetary Fund. The key underlying concept in balance of payments is the economic ownership (as for the national accounts).
(2) Services other than travel (tourism and professional travels), transport services, professional and management consulting services, R&D and development and technical services, trade-related and other business services include manufacturing, maintenance and repair, construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunication, computer and information services, personal, cultural and recreational services and government goods and services.
(3) Income includes primary and secondary incomes. Primary income refers to the flows received by economic agents for their participation in the production process ("compensation of employees") or for the provision of financial assets ("investment income") or for the rental of natural resources ("rent"). Taxes and subsidies on products and production are also included in primary income. Secondary income records current transfers between residents and non-residents. A transfer is a transaction that involves the provision of a good, service, financial asset or another non-produced asset without receiving something of economic value in exchange.
(4) The "other investment" (loans and deposits) component of the financial account includes all transactions in financial assets and liabilities with non-residents that do not concern direct investment, portfolio investment, financial derivatives or reserve assets. In practice, this mainly concerns bank deposits and interbank lending, as well as loans and deposits made by insurance companies and all kinds of investment companies and funds.
More information on methodology, time series, calendar
All statistical time series publlshed by the Banque de France can be accessed on
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Balance of paymentsSTAT INFO - September 2019
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France's balance of payments
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Published on Friday, November 8, 2019