Very sharp decrease in current account surplus

Germany’s current account recorded a surplus of €10.3 billion in August 2026, down €11.5 billion on the previous month’s level. This was mainly attributable to a smaller goods account surplus. Another reason was 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 €7.5 billion to €13.1 billion as receipts recorded a sharper decline than expenditure. This development could be related to seasonal and calendar effects. Invisible current transactions shifted from a surplus of €1.2 billion in the previous month to a deficit of €2.7 billion, a key factor being that the services deficit expanded by €3.1 billion to €11.5 billion. Here, both receipts and expenditure declined overall, with a drop in transactions in other business services and charges for the use of intellectual property playing a significant role in each case. However, the fact that overall expenditure narrowed less strongly than receipts  was essentially due to the increase in travel expenditure that is typical for this time of year. In addition, net receipts in primary income fell by €0.6 billion to €15.6 billion, largely on account of a decrease in residents’ receipts from portfolio investment abroad. At €6.8 billion, the deficit in the secondary income account stood at practically the same level as in July.

Net capital exports

Germany registered net capital exports of €16.1 billion in August, following net capital imports of €6.4 billion in July.

Direct investment generated net capital imports of €3.0 billion in August, down from €8.6 billion in July. Foreign enterprises provided their subsidiaries in Germany with direct investment funds totalling €2.6 billion in net terms, increasing both their equity capital (€2.4 billion) and intra-group loans (€0.2 billion). Domestic enterprises, by contrast, scaled back their foreign direct investment by €0.4 billion. Although they stepped up their equity capital by €5.4 billion, redemptions of intra-group loans predominated (€5.8 billion). 

Germany’s cross-border portfolio investment recorded net capital exports of €19.0 billion in August (following net capital imports of €34.4 billion in July). Domestic investors acquired foreign securities worth €47.5 billion on balance. They purchased bonds (€26.4 billion), mutual fund shares (€19.1 billion) and money market paper (€2.4 billion), but offloaded shares (€0.3 billion). Foreign investors added €28.5 billion worth of domestic securities to their portfolios on balance, acquiring bonds (€18.5 billion), money market paper (€9.6 billion) and shares (€0.5 billion). By contrast, they parted with mutual fund shares on a very small scale.

In August, transactions in financial derivatives resulted in net outflows of €5.7 billion (following inflows of €2.9 billion in July). 

Other investment comprises loans and trade credits (where these do not constitute direct investment) as well as bank deposits and other capital. This account recorded net capital imports of €5.4 billion in August, following net capital exports of €38.3 billion in July. Enterprises and households (€37.8 billion) as well as monetary financial institutions excluding the Bundesbank (€1.5 billion) reduced their net external assets in this segment. By contrast, the Bundesbank’s net external claims in other investment rose (€31.3 billion), owing in particular to an increase in TARGET claims on the ECB. General government also recorded net capital exports on balance (€2.7 billion). 

The Bundesbank’s reserve assets declined – at transaction values – by €0.2 billion in August.