Italy Balance of Payments April 2008

In April 2008 Italy's current account deficit stood at 4,129 EUR million compared to a deficit of 4,726 EUR million in April 2007. Positive movements in the services balance (650 EUR million) and the goods balance(352 EUR million) were partly offset by negative movements in the income balance (211 EUR million) and in current transfers (194 EUR million).

In the 12-month period to April 2008, the current account recorded a deficit of 38,297 EUR million compared to a deficit of 39,089 EUR million a year earlier. A positive change in the goods balance (10,176 EUR million) was almost entirely offset by a negative change in the income (6,704 EUR million), services (1,349 EUR million) and current transfers (1,331 EUR million) balances.

In April 2008 direct investment showed a net outflow of 1,106 EUR million and portfolio investment showed a net inflow of 14,454 EUR million. ‘Other investment’ recorded a net outflow of 13,708 EUR million. Compared to April 2007, Italian direct investment abroad decreased by 2,193 EUR million, and Italian portfolio investment decreased by 16,576 EUR million. Foreign direct investment decreased by 758 EUR million and foreign portfolio investment increased by 7,929 EUR million, reflecting investment in 'debt securities’.

In the 12-month period to April 2008, direct investment showed a net outflow of 27,701 EUR million compared to a net outflow of 26,086 EUR million a year earlier.


Net portfolio investment increased by about 94 EUR billion from a net inflow of 5,560 EUR million to a net inflow of 99,670 EUR million. On the one hand Italian investment in equities and debt securities decreased respectively by about 60 and 31 EUR billion and foreign investment in debt securities increased by about 25 EUR billion. On the other hand foreign investment in equities decreased by about 22 EUR billion.