Key insights
- The Euro zone's current account surplus widened in January due to a jump in the trade surplus. However, the ECB anticipates that rising energy costs will negatively impact future data. While seemingly positive, the temporary nature of the surplus and the expected drag from energy prices suggest a potential headwind for European growth, indirectly impacting US equities through global economic linkages.
FRANKFURT, March 20 (Reuters) - The euro zone’s adjusted current account surplus widened in January on a big jump in the trade surplus, a temporary rise before sharply higher energy costs weigh on data, European Central Bank figures showed on Friday.
The adjusted surplus rose to 37.9 billion euros in January from 13.3 billion euros a month earlier, while the unadjusted figure narrowed to 13.0 billion euros from 33.7 billion euros.
In the 12 months to January, the bloc’s surplus narrowed to 1.6% of GDP from 2.5% in the preceding 12 months.