Rise in current account surplus

Germany’s current account recorded a surplus of €24.0 billion in December 2024, up €2.1 billion on the previous month’s level. The surplus in the goods account decreased sharply, but the surplus in invisible current transactions, which comprise services as well as primary and secondary income, increased more strongly.

In December, the surplus in the goods account fell by €7.8 billion to €10.8 billion because receipts recorded a sharper decline than expenditure. The surplus in invisible current transactions expanded by €9.9 billion to €13.3 billion, largely because net receipts in primary income grew by €6.6 billion to €23.2 billion. Higher revenue from the EU’s agricultural subsidies, which were paid out towards the end of the year as is standard practice, made a major contribution to this increase. There was also a rise in residents’ receipts from other investment income and portfolio investment. In addition, the deficit in the services account was €4.8 billion lower, now amounting to €1.6 billion. Lower net expenditure on travel and other business services as well as the shift to net receipts in telecommunication, computer and information services played a particular role in this regard. By contrast, the deficit in the secondary income account widened by €1.5 billion to €8.3 billion. Although receipts grew, expenditure expanded more sharply. The overall rise in expenditure was attributable in particular to higher general government payments to the EU budget in connection with financing related to gross national income and to payments for current transfers relating to international cooperation. There was also an increase in non-government expenditure. 

Portfolio investment sees net capital exports

Germany’s cross-border portfolio investment recorded net capital exports of €30.6 billion in December, after net capital imports of €12.3 billion in November. Foreign investors divested themselves of German securities to the tune of €20.8 billion net, offloading bonds (€17.8 billion) and money market paper (€3.4 billion) in particular, but also mutual fund shares (€0.5 billion). In addition, non-resident investors added shares issued in Germany to their portfolios (€0.9 billion). Domestic investors acquired foreign securities amounting to €9.8 billion net, purchasing foreign mutual fund shares (€14.5 billion) and money market paper (€2.1 billion). Meanwhile, they sold off shares (€4.1 billion) and bonds (€2.7 billion). 

In December, transactions in financial derivatives resulted in net inflows of €0.8 billion (after outflows of €1.5 billion in November). 

Direct investment generated net capital exports of €26.3 billion in December (after €1.1 billion in November). Foreign enterprises reduced their direct investment in Germany by €22.2 billion. This was due to the fact that redemptions outweighed new intragroup loans (by €23.6 billion). By contrast, foreign enterprises stepped up their equity stakes in German enterprises by €1.4 billion. German enterprises increased their direct investment funds abroad by €4.1 billion, boosting equity capital by €5.5 billion, but scaled back their cross-border intra-group lending by €1.4 billion net. 

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 €4.2 billion in December (following net capital exports of €34.3 billion in November). Bundesbank account transactions also recorded net capital imports (€71.9 billion), with its TARGET claims on the ECB decreasing by €20.2 billion, whilst the Bundesbank’s external liabilities in the form of currency and deposits rose significantly, as is often the case at the end of the year. By contrast, the other investment account recorded net capital exports of €69.1 billion from cross-border transactions by other monetary financial institutions. In addition, general government registered net capital exports (€3.8 billion), while transactions by enterprises and households resulted in net capital imports in other investment (€5.3 billion).

The Bundesbank’s reserve assets declined – at transaction values – by €2.0 billion in December.

Preliminary annual figures for the balance of payments

According to the balance of payments data available so far, Germany’s current account surplus rose to €248.7 billion in 2024 (from €243.1 billion in 2023). The sub-accounts of the financial account recorded net capital exports totalling €270.6 billion. Viewed in terms of transactions, net financial assets increased most strongly in other investment (€145.3 billion), followed by direct investment (€64.5 billion), financial derivatives (€41.0 billion) and portfolio investment (€21.2 billion). Reserve assets recorded – at transaction values – net capital imports of €1.4 billion.

The final annual figures for the balance of payments will be published and analysed in greater detail in the March 2025 Monthly Report.