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Economy and Finance
Scientific paper

Euro Area Current Account Developments


Discussion Paper 202
Publication date
8 May 2024
Milan Výškrabka | Erza Aruqaj | Directorate-General for Economic and Financial Affairs


This paper reviews developments in the euro area external position, discusses the main drivers and provides some insights into the likely determinants of the external position in the near term.


  • The energy and COVID-19 crises reversed the narrowing of global current account balances that had been underway, leading to sharp increases over the past three years.
  • In the euro area, energy prices played a key role in the external balance, which fell from sizeable pre-pandemic surpluses to a deficit in 2022.
  • Although price effects have been instrumental in recent current account developments, real demand has also played a role.
  • Current account balances are set to continue increasing, though the confluence of factors, both temporary and cyclical, are markedly clouding the likely path for the euro area current account.
  • Supporting the energy transition and diversifying the sources of energy supply can increase the resilience of the euro area against external shocks and strengthen external positions over the medium-term.

Information and identifiers

Discussion Paper 202. May 2024. Brussels. PDF. 20pp. Tab. Graph. Bibliogr. Free.
KC-BD-23-019-EN-N (online) 
ISBN 978-92-68-01820-0 (online) 
ISSN 2443-8022 (online)
doi:10.2765/83662 (online)

JEL classification: F45, F62.


European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.

Euro Area Current Account Developments


8 MAY 2024
Euro Area Current Account Developments