This chapter outlines the methods used by the European Central Bank (ECB), in cooperation with the European System of Central Banks (ESCB) to compile statistics on the euro area balance of payments and international investment position (BOP/IIP). It describes the key principles for compiling these statistics, including the treatment of the euro area as a single economic territory and the focus on transactions and positions with non-euro area residents. It also presents the main data sources, primarily national contributions from euro area countries, emphasizing the importance of data quality and harmonization for accurate euro area aggregates. Additionally, the chapter discusses euro area specific compilation practices. It also highlights the analytical value of BOP/IIP statistics for ECB policymaking, particularly in assessing the euro area’s exposure to external shocks and the international impact of ECB policies. The chapter also present recent advancements in the development of euro area BOP/IIP statistics, including more detailed breakdowns for special-purpose entities and enhanced sectoral and geographic information.
