European Central Bank reports euro area current account surplus narrows to EUR 283 billion while net international investment position rises to EUR 1.72 trillion

The European Central Bank published updated euro area balance of payments and international investment position data showing the current account surplus fell to EUR 283 billion (1.8% of GDP) in the four quarters to the third quarter of 2025, from EUR 425 billion (2.8% of GDP) a year earlier. Over the same reference point, the euro area’s net international investment position increased to EUR 1.72 trillion (11.0% of GDP) at end of the third quarter of 2025, up from EUR 1.51 trillion in the previous quarter. The narrowing in the current account surplus was mainly driven by primary income moving from a EUR 55 billion surplus to a EUR 41 billion deficit, alongside a wider secondary income deficit (EUR 188 billion from EUR 161 billion) and a lower services surplus (EUR 144 billion from EUR 168 billion), partly offset by a slightly larger goods surplus (EUR 368 billion from EUR 362 billion). By geographical counterpart, the largest bilateral surplus was vis-à-vis the United Kingdom (EUR 206 billion) and the largest deficit was vis-à-vis China (EUR 144 billion), while the balance with the United States shifted to a EUR 32 billion deficit from a EUR 9 billion surplus a year earlier. The EUR 209 billion quarterly increase in net external assets was mainly driven by higher reserve assets and higher net assets in portfolio debt, with developments largely explained by positive price changes. The release incorporated revisions for reference periods from the first quarter of 2022 to the second quarter of 2025. The European Central Bank also flagged the next releases for monthly balance of payments data on 20 January 2026 and quarterly balance of payments and international investment position data on 9 April 2026.