Rise in current account surplus

Germany’s current account recorded a surplus of €21.2 billion in July 2026. The result was €2.3 billion up on the level of the previous month. This was mainly due to a larger goods account surplus. By contrast, there was a decrease in the surplus in invisible current transactions, which comprise services as well as primary and secondary income. 

The surplus in the goods account increased by €3.9 billion to €21.1 billion in the reporting month because expenditure fell more sharply than receipts. The surplus in invisible current transactions contracted by €1.6 billion. At €0.1 billion, the balance was close to zero. The deficit in the services account increased by €1.1 billion to €8.3 billion, with receipts falling overall and expenditure increasing. This was mainly due to lower net receipts from charges for the use of intellectual property, as well as a shift to net expenditure in telecommunications, computer and information services. By contrast, the deficit was dampened by slightly lower expenditure on travel compared with the high figure for June coinciding with growth in travel receipts. The deficit in the secondary income account also widened. It grew by €1.7 billion to €6.7 billion, with lower general government revenue from current taxes on income and wealth, in particular, playing a role. By contrast, net receipts on primary income went up by €1.2 billion to €15.0 billion. Receipts fell, too. Expenditure saw a sharper decline, however, mainly owing to lower dividend payments to non-residents from their portfolio investment.

Net capital imports

Germany registered net capital imports of €3.8 billion in July, following net capital exports of €33.0 billion in June.

Direct investment generated net capital imports of €9.3 billion in July, following net capital exports of €1.7 billion in June. Foreign enterprises boosted their direct investment in Germany by €17.7 billion, issuing additional intra-group loans to the tune of €14.5 billion and boosting their equity capital by €3.2 billion. Domestic enterprises likewise provided their subsidiaries in Germany with additional direct investment funds (€8.5 billion), increasing both their equity capital (€7.6 billion) and the volume of intra-group loans (€0.9 billion). 

Germany’s cross-border portfolio investment recorded net capital imports of €28.8 billion in July (following net capital exports of €5.3 billion in June). Foreign investors acquired German securities worth €42.4 billion net. They mainly purchased bonds (€42.3 billion), chiefly those issued by the public sector (€30.6 billion), also acquiring shares on a small scale (€0.3 billion). By contrast, they parted with mutual fund shares and money market paper (€0.1 billion, in each case). Domestic investors added foreign securities worth a net €13.6 billion to their portfolio, purchasing mutual fund shares (€14.8 billion), money market paper (€2.0 billion) and bonds (€1.5 billion), but offloading shares (€4.7 billion).

In July, transactions in financial derivatives resulted in net inflows of €5.5 billion (following net capital exports of €12.1 billion in June). 

Other investment comprises loans and trade credits (where these do not constitute direct investment) as well as bank deposits and other capital. Net capital exports in this area amounted to €38.6 billion in July (after €14.4 billion in June). This was mainly the result of transactions by enterprises and households (€23.5 billion) and by monetary financial institutions excluding the Bundesbank (€13.1 billion). The Bundesbank’s net external claims in other investment also went up (€2.3 billion). This was due to a decrease in deposits from non-euro area residents while the TARGET balance went down (€6.1 billion). General government recorded net capital imports on balance (€0.4 billion). 

The Bundesbank’s reserve assets rose – at transaction values – by €1.3 billion in July.