The European Central Bank published euro area balance of payments and international investment position data showing that the current account surplus narrowed to EUR 275 billion, or 1.7% of GDP, in the four quarters to the first quarter of 2026, from EUR 352 billion, or 2.3% of GDP, a year earlier. The decline was mainly driven by a smaller surplus in goods, a smaller surplus in services and a wider secondary income deficit, while the primary income surplus edged down only slightly. Within goods, the surplus fell mainly because surpluses in chemical products and machinery and manufactured products declined, partly offset by a smaller energy deficit. The services surplus narrowed as deficits for charges for the use of intellectual property and other business services widened, despite stronger surpluses in telecommunication, computer and information services and travel. By geographical counterpart, the euro area recorded its largest bilateral current account surplus vis-a-vis the United Kingdom at EUR 236 billion and its largest deficit vis-a-vis China at EUR 170 billion, while the deficit vis-a-vis the United States widened to EUR 82 billion from EUR 3 billion a year earlier. At the end of the first quarter of 2026, the euro area's net international investment position stood at net assets of EUR 1.80 trillion, or 11.2% of GDP, up from EUR 1.65 trillion in the previous quarter, mainly reflecting higher reserve assets and stronger net assets in portfolio debt, partly offset by larger net liabilities in portfolio equity. The quarterly increase was driven chiefly by positive exchange rate changes, with price changes and transactions also contributing. Gross external debt rose to EUR 17.53 trillion, or 109% of GDP, at the end of the first quarter of 2026, up EUR 565 billion from the previous quarter. The release also incorporated revisions for periods from the first quarter of 2022 to the fourth quarter of 2025, which did not significantly alter previously published figures. The next monthly balance of payments release is scheduled for 17 July 2026 and the next quarterly balance of payments and international investment position release for 2 October 2026.
European Central Bank2026-07-03
European Central Bank reports euro area current account surplus fell to EUR 275 billion and net international investment position rose to EUR 1.80 trillion
The European Central Bank reported that the euro area's current account surplus narrowed to EUR 275 billion, or 1.7% of GDP, in the four quarters to the first quarter of 2026 from EUR 352 billion a year earlier, mainly because goods and services surpluses shrank and the secondary income deficit widened. The largest bilateral surplus was with the United Kingdom at EUR 236 billion, while the largest deficit was with China at EUR 170 billion. The net international investment position improved to net assets of EUR 1.80 trillion, driven mainly by higher reserve assets, stronger portfolio debt positions and positive exchange rate changes.