Eurozone’s surplus grows

FRANKFURT / LONDON - Agence France-Presse

The new European Central Bank is pictured under construction in the Frankfurt am Main skyline. EPA photo

The eurozone’s current account surplus grew to 8.8 billion euros ($11.5 billion) in August from 8.1 billion euros the previous month, European Central Bank data showed on Oct. 19.

The current account on the balance of payments, which includes imports and exports in both goods and services plus all other current transfers, is a closely tracked indicator of the ability of a country or area to pay its way in the world. It is crucial for the long-term confidence of investors and trading partners.

Over the 12 months to August, the current account showed a surplus of 72.4 billion euros, compared with a deficit of 21.6 billion euros in the corresponding period a year earlier, the data showed.

Meanwhile, British state borrowing fell in September, hitting the lowest level for the month since 2008, but analysts warned that the government still appeared likely to miss its annual deficit target. Public sector net borrowing stood at 12.8 billion pounds ($20.5 billion) last month, the Office for National Statistics said in a statement. That compared with 13.5 billion in September 2011. The data excludes the temporary effects of financial interventions such as bank bailouts. Market expectations had been for public borrowing to hit a higher 13.9 billion in September.