The euro's weakness caused a sharp increase in the euro zone's trade deficit last year, according to figures released by the European Central Bank today.
The euro area had a current account deficit of euro 23.6 billion in the first 11 months of 2000 compared with a deficit of just euro 1.9 billion for the same period in 1999.
The bank said the value of imports increased by 26.2 per cent in the 11 months to November 30th while exports rose just 20.3 per cent.
In November 2000 foreign investment in euro area bonds and notes reached its highest level in 2000, confirming a trend increase observed since early 2000.
For the first 11 months of 2000 combined portfolio investment outflows amounted to euro 132.5 billion. This was somewhat lower than the euro 142.8 billion outflow in the same period of 1999.
Reuters