Current account surplus down

Germany’s current account posted a surplus of €14.8 billion in July 2025, down €2.3 billion on the previous month’s level. The surplus in the goods account increased, but there was a stronger decline in the balance of invisible current transactions, which comprise services as well as primary and secondary income.

The surplus in the goods account grew by €2.0 billion to €16.4 billion in the reporting month because receipts rose more strongly than expenditure. Invisible current transactions shifted from a surplus of €2.7 billion in June to a deficit of €1.6 billion in July. The lower balance in this item was mainly caused by the services account, though the primary and secondary income accounts also declined to a lesser extent. The services account saw the deficit widen by €2.8 billion to €10.1 billion in the reporting month, chiefly as a result of falling income and rising expenditure on telecommunications, computer and information services. In addition, net receipts from charges for the use of intellectual property were lower in July than in the previous month. The deficit was dampened, meanwhile, by a decline in travel expenditure and an increase in travel receipts. Net receipts in the primary income account fell slightly, dropping by €0.7 billion to €14.2 billion, as receipts declined somewhat more sharply than expenditure. The deficit in the secondary income account, on the other hand, widened by €0.8 billion to €5.7 billion.

Lower net capital exports

German net capital exports were lower in July than in the previous month (€1.7 billion, after €48.7 billion in June).

Direct investment generated net capital imports of €4.6 billion in July (following net capital exports of €12.4 billion in June). Foreign enterprises provided their German affiliates with additional direct investment funds totalling €11.9 billion, increasing both their intra-group loans (€6.1 billion) and their equity capital (€5.7 billion). German enterprises stepped up their foreign direct investment by €7.3 billion, likewise increasing their volume of lending to affiliates abroad (€3.8 billion) and boosting equity capital (€3.5 billion).

Germany’s cross-border portfolio investment recorded net capital imports of €24.5 billion in July (following net capital exports of €30.2 billion in June). Foreign investors acquired German securities worth €35.3 billion in net terms, purchasing German bonds (€26.3 billion), money market paper (€9.5 billion) and mutual fund shares (€0.2 billion), whilst offloading shares amounting to €0.6 billion. Domestic investors added €10.8 billion worth of securities issued by non-residents to their portfolios on balance, purchasing foreign mutual fund shares (€10.0 billion) and shares (€8.6 billion) and selling bonds (€5.6 billion) and money market paper (€2.2 billion). 

In July, transactions in financial derivatives resulted in net inflows of €2.1 billion (following outflows of €6.9 billion in June).

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 €33.3 billion in July (following net capital imports of €0.7 billion in June). This was mainly the result of net capital exports by enterprises and households (€25.8 billion) and monetary financial institutions excluding the Bundesbank (€22.5 billion). Transactions via Bundesbank accounts, meanwhile, generated net capital imports (€12.7 billion), with the Bundesbank’s TARGET claims on the ECB decreasing by €7.4 billion. Furthermore, the Bundesbank’s external liabilities in the form of currency and deposits rose. General government also recorded net capital imports in other investment, which amounted to €2.2 billion.

The Bundesbank’s reserve assets declined – at transaction values – by €0.4 billion in July.