Eurozone current account shows 5.1 bn euro deficit

The eurozone's current account balance worsened in April to show a deficit of 5.1 billion euros ($7.3 billion), the European Central bank said Monday. The ECB also revised the figure for the month of March in the 17-nation area to a deficit of 3.0 billion euros from an initial estimate of 4.7 billion euros. The current account on the balance of payments, which includes imports and exports in both goods and services plus capital transfers, is a closely tracked indicator of a country's or area's ability to pay its way in the world. It is crucial for the long-term confidence of investors and trading partners. The data, which have historically been subject to large revisions, also showed that the eurozone's deficit has widened sharply in the past year. Over the last 12 months, the deficit total amounted to 52.3 billion euros, or 0.6 percent of gross domestic product. This is much bigger than in the previous year, when the accumulated deficit came to 12.4 billion euros. This rise was linked to a drop in the surplus for goods to 1.9 billion euros from 44.6 billion euros in April 2010, the ECB said in a statement. Looking just at April, the deficit for goods reached 4.1 billion euros, which the ECB said was partially offset by surplus for income of 3.6 billion euros and for services of 2.7 billion euros. The current transfers deficit dipped to 7.3 billion euros from 9.0 billion euros in March. The eurozone last posted a current account surplus in January 2010.