Current account surplus up significantly

Germany’s current account recorded a surplus of €34.1 billion in March 2025, up €7.8 billion on the previous month’s level. This was attributable to larger surpluses in the goods account and especially in invisible current transactions, which comprises services as well as primary and secondary income. 

The surplus in the goods account grew by €2.2 billion to €22.4 billion because receipts recorded a steeper increase than expenditure. In March, too, anticipatory effects surrounding exports to the United States in the run-up to the tariff announcements may have played a role in the growth in goods exports. The surplus in invisible current transactions expanded by €5.6 billion to €11.6 billion, a key factor being that net receipts in primary income rose by €4.6 billion to €19.9 billion. Higher receipts from and lower expenditure on income from portfolio investment, particularly lower dividend payments to non-residents, played a role here. Moreover, the deficit in the services account narrowed by €1.0 billion to €3.0 billion. Expenditure increased overall, mainly owing to greater expenditure on travel and other business services, which outweighed the decline in charges for the use of intellectual property. However, receipts grew more strongly, with income expanding slightly across a broad spectrum, especially for computer services. The deficit in secondary income remained virtually unchanged at €5.2 billion. 

Higher net capital exports

German net capital exports were higher in March than in the previous month (€60.0 billion, after broadly balanced flows in February).

Direct investment generated net capital exports of €12.7 billion in March (after €0.1 billion in February). German enterprises stepped up their foreign direct investment by €17.0 billion, increasing the volume of lending to affiliates abroad by €11.9 billion and boosting equity capital by €5.1 billion. Foreign enterprises provided their German affiliates with additional direct investment funds (€4.2 billion), issuing additional intra-group loans to the tune of €2.7 billion net and raising their equity capital by €1.5 billion. 

Germany’s cross-border portfolio investment recorded net capital imports of €5.4 billion in March, after net capital exports of €27.6 billion in February. Foreign investors acquired German securities worth €26.3 billion net, buying money market paper (€12.8 billion), bonds (€10.3 billion), mutual fund shares (€2.2 billion) and shares (€1.1 billion). Domestic investors added €21.0 billion worth of securities issued by non-residents to their portfolios on balance. They purchased foreign bonds (€17.8 billion), mutual fund shares (€6.8 billion) and money market paper (€2.1 billion), but parted with equities (€5.7 billion), including shares issued in the United States, amongst others.

In March, transactions in financial derivatives resulted in net outflows of €8.1 billion (following €2.1 billion in February). 

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 €44.8 billion in March (following net capital imports of €29.8 billion in February). Net capital exports by enterprises and individuals (€28.2 billion) and monetary financial institutions excluding the Bundesbank (€17.1 billion) were a decisive factor. Bundesbank account transactions recorded net capital exports (€3.3 billion), with the Bundesbank’s TARGET claims on the ECB decreasing by €11.7 billion. At the same time, liabilities in the form of cash and deposits declined. General government recorded net capital imports in other investment; these amounted to €3.8 billion.

The Bundesbank’s reserve assets fell slightly – at transaction values – by €0.3 billion in March.