German Bundesbank reports August 2025 current account surplus fell to EUR 8.3bn while net capital exports rose to EUR 20.8bn

The German Bundesbank published Germany’s balance of payments for August 2025, showing the current account surplus declined to EUR 8.3bn, EUR 7.3bn below the previous month. The deterioration was driven by a smaller goods trade surplus and a swing into deficit in “invisible” transactions covering services plus primary and secondary income; the financial account returned to net capital exports of EUR 20.8bn after net capital imports of EUR 2.9bn in July. The goods trade surplus fell by EUR 4.7bn to EUR 10.6bn as receipts contracted more than expenditure. Invisible transactions moved from a EUR 0.3bn surplus to a EUR 2.3bn deficit, reflecting a EUR 1.4bn drop in net primary income receipts to EUR 13.8bn (mainly lower income from direct investment) and a EUR 1.0bn widening of the services deficit to EUR 10.2bn, while the secondary income deficit was broadly unchanged at EUR 5.9bn. On the financial account, net capital exports comprised direct investment outflows of EUR 3.5bn, portfolio investment outflows of EUR 1.9bn (residents bought EUR 24.9bn of foreign securities while non-residents bought EUR 23.0bn of German securities), derivative-related outflows of EUR 5.9bn, and other investment outflows of EUR 10.3bn, including Bundesbank account transactions of EUR 25.0bn with TARGET claims rising by EUR 16.9bn; the Bundesbank’s foreign exchange reserves declined by EUR 0.8bn at transaction values.