Higher current account surplus

The German current account recorded a surplus of €20.0 billion in February 2025, up €5.0 billion on the previous month’s level. The surplus in invisible current transactions, which comprise services as well as primary and secondary income, declined slightly. However, the surplus in the goods account rose even more strongly.

In February, the surplus in the goods account grew by €5.7 billion on the month to €19.4 billion because receipts increased markedly more steeply than expenditure. The rise in exports to the United States made a significant contribution to the growth in exports. Anticipatory effects in the run-up to the higher tariffs may also have played a role here. The surplus in invisible current transactions contracted by €0.7 billion to €0.6 billion, largely because net receipts in primary income declined by €2.8 billion to €10.0 billion. Higher dividend payments to non-residents for their portfolio investment played the key role here. By contrast, the deficit in the services account narrowed by €1.8 billion to €4.2 billion. Overall, expenditure fell more sharply than receipts, with other business services making the largest contribution here. In addition, the deficit in the secondary income account narrowed slightly, declining by €0.3 billion to €5.2 billion.

Lower net capital exports

German net capital exports were lower in February than in the previous month (€6.3 billion, after €13.4 billion in January).

Direct investment generated net capital exports of €2.5 billion in February (following net capital imports of €4.5 billion in January). German enterprises stepped up their foreign direct investment by €7.0 billion, boosting equity capital by €9.8 billion, but decreasing the volume of lending to affiliates abroad by €2.8 billion. Foreign enterprises provided their German affiliates with additional direct investment funds (€4.5 billion), boosting their equity capital by €3.2 billion and granting additional intra-group loans amounting to €1.3 billion on balance. 

Germany’s cross-border portfolio investment recorded net capital exports of €28.7 billion in February (after €13.9 billion in January). Domestic investors added €41.3 billion worth of securities issued by non-residents to their portfolios on balance, purchasing foreign bonds (€18.6 billion), mutual fund shares (€14.5 billion), shares (€7.0 billion) and money market paper (€1.2 billion). Foreign investors acquired German securities worth €12.6 billion net, buying shares (€3.8 billion), mutual fund shares (€3.5 billion), bonds (€3.5 billion) and money market paper (€1.7 billion).

In February, transactions in financial derivatives resulted in net outflows of €2.8 billion (following €4.0 billion in January). 

Other statistically recorded investment – which comprises loans and trade credits (where these do not constitute direct investment), bank deposits and other investments – registered net inflows of capital amounting to €27.6 billion in February (following €1.3 billion in January). Net capital imports by enterprises and individuals (€33.3 billion) and monetary financial institutions excluding the Bundesbank (€8.0 billion) were a decisive factor. By contrast, Bundesbank account transactions recorded net capital exports (€12.2 billion), with the Bundesbank’s TARGET claims on the ECB increasing by €12.8 billion. General government also recorded net capital exports in other investment; these amounted to €1.4 billion.

The Bundesbank’s reserve assets fell slightly – at transaction values – by €0.1 billion in February.