Current account surplus down significantly

Germany’s current account recorded a surplus of €8.3 billion in August 2025, down €7.3 billion on the previous month’s level. This was mainly caused by the smaller surplus in the goods account and the shift to a deficit in invisible current transactions, which comprise services as well as primary and secondary income. 

In August, the surplus in the goods account fell by €4.7 billion to €10.6 billion because receipts declined by more than expenditure. Invisible current transactions switched from a surplus of €0.3 billion in July to a deficit of €2.3 billion, with net receipts in primary income falling by €1.4 billion to €13.8 billion. Expenditure declined slightly overall. However, receipts fell by more; the decline was mainly due to lower receipts from direct investment. In addition, the deficit in the services account widened, expanding by €1.0 billion to €10.2 billion. This account likewise saw a decline in receipts, largely on account of lower receipts from other business services and charges for the use of intellectual property. Expenditure was also depressed mainly by declines in these areas and by lower expenditure on computer services. However, the increase in travel expenditure – typical for this time of year – contributed substantially to overall expenditure narrowing less strongly than receipts. The deficit in secondary income was almost unchanged at €5.9 billion.

Higher net capital exports

Germany’s balance of payments recorded net capital exports again in August (€20.8 billion), following net capital imports of €2.9 billion in July.

Direct investment generated net capital exports of €3.5 billion in August (following net capital imports of €3.9 billion in July). German enterprises stepped up their foreign direct investment by €3.1 billion, boosting their equity capital by €7.9 billion but lowering their lending to affiliates (€4.9 billion). Foreign enterprises withdrew direct investment from affiliates in Germany (€0.5 billion). They did this entirely by lowering the volume of intra-group loans (€3.4 billion). By contrast, they increased their equity capital in Germany (€2.9 billion). 

Germany’s cross-border portfolio investment recorded net capital exports of €1.9 billion in August (following net capital imports of €29.1 billion in July). Domestic investors added €24.9 billion worth of securities issued by non-residents to their portfolios on balance, purchasing foreign bonds (€11.2 billion), mutual fund shares (€9.2 billion) and shares (€6.4 billion), but selling money market paper (€1.9 billion). Foreign investors acquired German securities in the amount of €23.0 billion in net terms, purchasing German money market paper (€13.5 billion), bonds (€9.9 billion) and mutual fund shares (€0.3 billion) but offloading shares (€0.6 billion). 

In August, transactions in financial derivatives resulted in net outflows of €5.9 billion (following inflows of €2.4 billion in July). 

Other statistically recorded investment – which comprises loans and trade credits (where these do not constitute direct investment), bank deposits and other investments – registered net capital exports amounting to €10.3 billion in August (following €32.9 billion in July). Transactions via Bundesbank accounts, meanwhile, generated net capital exports (€25.0 billion), with the Bundesbank’s TARGET claims on the ECB increasing by €16.9 billion. Furthermore, the Bundesbank’s external liabilities in the form of currency and deposits declined. Net capital exports were also recorded by monetary financial institutions excluding the Bundesbank (€7.9 billion) and general government (€1.0 billion). Transactions by enterprises and households led to net capital imports (€23.7 billion), meanwhile.

The Bundesbank’s reserve assets declined – at transaction values – by €0.8 billion in August.