Steep drop in current account surplus

Germany’s current account recorded a surplus of €10.4 billion in May 2026, down €6.2 billion on the previous month’s level. This was attributable to a strong shift into deficit in invisible current transactions, which comprise services as well as primary and secondary income. The surplus in the goods account widened only marginally.

The surplus in the goods account grew by €0.5 billion to €15.4 billion in May because expenditure declined somewhat more than receipts. Invisible current transactions switched from a surplus of €1.7 billion in the previous month to a deficit of €5.0 billion. The €1.7 billion increase in the services account deficit, bringing it to €7.2 billion, also played a role in this. In this account, net expenditure on other business services fell, but the increase in net travel expenditure and the decline in net revenue from charges for the use of intellectual property were stronger. However, the main factor was that net receipts in primary income contracted by €6.3 billion to €5.7 billion. This was largely due to a rise in dividend payments to non-residents for their portfolio investment, as typically occurs in May. Dividend payments also increased general government’s tax revenue from non-residents and were instrumental in reducing the deficit in secondary income by €1.2 billion to €3.5 billion.

Net capital exports

Germany registered net capital exports of €13.8 billion in May (after €3.2 billion in April).

Direct investment generated net capital imports of €9.9 billion in May (following net capital exports of €13.9 billion in April). Foreign enterprises provided their establishments in Germany with €11.8 billion in direct investment on balance, increasing both their intra-group loans (€8.4 billion) and their equity capital (€3.4 billion). Resident enterprises increased their outward foreign direct investment by €1.9 billion, boosting their equity capital abroad by €10.0 billion. However, they withdrew funds from abroad via intra-group lending (€8.1 billion). 

Germany’s cross-border portfolio investment recorded net capital exports of €1.6 billion in May (after €3.8 billion in April). Domestic investors acquired foreign securities worth €39.2 billion on balance, purchasing bonds (€25.6 billion), mutual fund shares (€11.3 billion), shares (€2.0 billion) and money market paper (€0.3 billion). Foreign investors added €37.6 billion worth of domestic securities to their portfolios on balance, also acquiring bonds (€35.8 billion), plus mutual fund shares (€2.1 billion) and money market paper (€1.6 billion). At the same time, they disposed of shares to the tune of €1.8 billion.

In May, transactions in financial derivatives resulted in net outflows of €5.7 billion (following €5.9 billion in April). 

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 exports of €15.5 billion in May, after net capital imports of €19.7 billion in April. Monetary financial institutions excluding the Bundesbank (€27.7 billion) and general government (€6.5 billion) recorded outflows of funds. Enterprises and households generated inflows (€11.2 billion). The Bundesbank’s TARGET claims on the ECB rose (by €6.2 billion). However, there was an even greater increase in deposits by investors from outside and within the euro area, which meant that the Bundesbank recorded net capital imports in other investment. 

The Bundesbank’s reserve assets grew – at transaction values – by €0.8 billion in May.