Euro zone swings to a rare current account deficit in March

© Reuters. FILE PHOTO: Packs of 20-euro notes are seen at the Bank of Portugal fortified complex in Carregado, Alenquer, Portugal, May 17, 2022. REUTERS/Pedro Nunes

FRANKFURT (Reuters) – The euro zone recorded its first current account deficit in a decade in March on a small trade deficit and an outflow of secondary incomes, or transfers between residents and non-residents, European Central Bank data showed on Thursday.

The bloc of 19 countries sharing the euro recorded a current account deficit of 1.57 billion euros after a surplus of 15.73 billion euros a month earlier, according to adjusted figures.

In the 12 months to March, the current account surplus totalled 1.8% of the bloc’s GDP, down from 2.6% in the preceding 12 months.