A Strengthening Hand in the EU

March 27, 2014
While the Euro Zone shows improvement in its current account surplus, the US lags behind but still shows a positive trend in current account balance.

The Euro Zone showed an improving current account surplus with the release of the January data according to the European Central Bank.  The EU-27 surplus rose to a record high $34.9 billion in January.  The current account balance is a broad measure of an economy’s international financial positive.  Think of it as cash flow.  What this mean is that the EU-17 is exporting more than it is importing, and currency is moving into the zone.  This is good news for them and for the US in that a stable/mildly expanding EU provides for markets for US goods and removes a financial threat to global stability.  A collapsing Europe is bad for everyone.

While the good news is found in Italy and Spain, it is primarily due to German-made goods being in demand globally.  France is still running a deficit, as is the USA. 

Lagging behind but still showing a favorable trend, US exports are increasing as our imports are holding essentially flat ($1.583 trillion and $2.267 trillion, respectively).   Exports are up 2.0% year-over-year while imports are down 0.4%.  A continuation of this trend would help strengthen our financial position as a nation and is good for our future. 

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends. 

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.

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