The balance of payments records all economic transactions between residents and non-residents within a given time period and thus shows a country’s complex economics links with the rest of the world.

January 2026 saw the EU conclude two major trade agreements – with the Mercosur countries and with India – culminating many years of negotiations. These agreements largely eliminate trade barriers and could, over the long run, help diversify the EU’s trade relations. Ratification of the two deals is still pending, however. Writing in the latest Monthly Report, Bundesbank experts illuminate the main features of the trade agreements and explore their potential economic impact.

It is often said that wage moderation in Germany was the primary cause of the current account imbalances in the euro area that emerged prior to the financial crisis. A new study puts this hypothesis to the test.

Following significant GDP growth in the previous quarter, the German economy is likely to stagnate in the first quarter of 2026 in seasonally adjusted terms, according to the March issue of the Bundesbank’s Monthly Report. Industry’s weak competitive position, continued low capacity utilisation and a lag in the impact of government stimuli are dampening developments. The Middle East conflict is a source of additional burdens, especially as a result of rising energy prices, and these factors are keeping the inflation outlook particularly uncertain at present.

The nominal effective exchange rates of the euro condense bilateral exchange rates against multiple countries into a single index. As an aggregate, they capture changes in euro exchange rates against various groups of currencies of key trading partners.

The same methodology as the real effective exchange rates of the euro is used to calculate price competitiveness indicators for individual euro area countries. 

On this page you will find frequently asked questions and notices on reports in external sector.

German banks tightened their credit standards for loans to enterprises in the fourth quarter of 2025 to an extent not seen since 2023. This is revealed by the Bundesbank's most recent round of the Bank Lending Survey. The banks pointed to the renewed rise in credit risk as the reason for this tightening.