The eurozone's current account surplus shrank to 9.7 billion euros ($12.7 billion) in July from 14.3 billion euros the previous month, European Central Bank data showed on Monday.

The current account on the balance of payments, which includes imports and exports in both goods and services plus all other current transfers, is a closely tracked indicator of the ability of a country or area to pay its way in the world.

It is crucial for the long-term confidence of investors and trading partners.

Over the 12 months to July, the current account showed a surplus of 62.9 billion euros, compared with a deficit of 22.2 billion euros in the corresponding period a year earlier, the data showed.