Steep rise in current account surplus

Germany’s current account posted a surplus of €18.6 billion in June 2025, up €11.1 billion on the previous month’s level. This was mainly attributable to the swing to a surplus in invisible current transactions, which comprise services as well as primary and secondary income. Moreover, the surplus in the goods account increased somewhat.

The surplus in the goods account increased by €0.4 billion to €15.4 billion in the reporting month because expenditure fell more sharply than receipts. Invisible current transactions shifted from a deficit of €7.5 billion in May back into a surplus in June, which came to €3.2 billion. In this context, the most decisive factor was that net expenditure on the primary income account in May (amounting to €1.2 billion) reverted to net receipts (totalling €15.2 billion). The main reason for this was the countermovement in dividend payments to non-residents from their portfolio investment; these payments had risen considerably in the previous month, as is usual in May. Diminishing dividend payments also reduced general government tax revenue from non-residents and were instrumental in expanding the deficit in secondary income by €3.6 billion to €4.9 billion. Furthermore, the deficit in the services account widened by €2.1 billion to €7.1 billion. Receipts increased overall, chiefly as a result of higher receipts from telecommunications and computer and information services as well as other business services. However, expenditure grew more sharply, with higher travel expenditure making a particular contribution. 

Higher net capital exports

German net capital exports were higher in June than in the previous month (€49.4 billion, after €32.1 billion in May).

Direct investment generated net capital exports of €14.3 billion in June (following net capital imports of €6.9 billion in May). German enterprises stepped up their foreign direct investment by €23.3 billion, increasing their volume of lending to affiliates abroad (€14.2 billion) and boosting equity capital (€9.1 billion). Foreign enterprises provided their German affiliates with additional direct investment funds totalling €9.1 billion. The main factor here was additional intra-group loans amounting to €9.5 billion, while foreign parent enterprises withdrew equity capital from their German subsidiaries in the amount of €0.4 billion. 

Germany’s cross-border portfolio investment recorded net capital exports of €30.1 billion in June (after €16.3 billion in May). Domestic investors added €45.3 billion worth of securities issued by non-residents to their portfolios on balance, purchasing foreign bonds (€29.1 billion), mutual fund shares (€10.7 billion), shares (€4.2 billion) and money market paper (€1.2 billion). Foreign investors acquired German securities worth €15.2 billion in net terms, purchasing German bonds (€10.7 billion), money market paper (€5.1 billion), and mutual fund shares (€0.7 billion), whilst offloading shares worth €1.4 billion. 

In June, transactions in financial derivatives resulted in net outflows of €8.1 billion (following €8.2 billion in May). 

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 imports amounting to €2.8 billion in June (following net capital exports of €13.9 billion in May). Transactions via Bundesbank accounts resulted in net capital imports of €19.4 billion, which were the main driver of overall developments. The Bundesbank’s TARGET claims on the ECB decreased by €15.6 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 €1.6 billion. By contrast, both enterprises and households (€13.1 billion) as well as monetary financial institutions excluding the Bundesbank (€5.1 billion) recorded net capital exports. 

The Bundesbank’s reserve assets declined – at transaction values – by €0.3 billion in June.