European Central Bank reports euro area current account surplus of EUR 35 billion in January 2025 and EUR 408 billion over 12 months

The European Central Bank published euro area balance of payments data showing the current account recorded a EUR 35 billion surplus in January 2025, down from EUR 38 billion in the previous month. Over the 12 months to January 2025, the current account surplus widened to EUR 408 billion (2.7% of euro area GDP), up from EUR 280 billion (1.9%) a year earlier. January’s surplus reflected surpluses in goods (EUR 35 billion), services (EUR 12 billion) and primary income (EUR 2 billion), partly offset by a deficit in secondary income (EUR 14 billion). The year-on-year widening in the 12-month surplus was mainly driven by larger surpluses in goods (EUR 380 billion versus EUR 296 billion) and services (EUR 163 billion versus EUR 122 billion), while the primary income surplus (EUR 33 billion) and secondary income deficit (EUR 168 billion) remained broadly unchanged. In the financial account over the same 12 months, euro area residents’ net purchases of non-euro area portfolio securities totalled EUR 677 billion and non-residents’ net purchases of euro area portfolio securities totalled EUR 784 billion; residents’ direct investment in non-euro area assets was EUR 90 billion, while non-residents disinvested EUR 107 billion from euro area assets. The ECB also reported the Eurosystem’s stock of reserve assets rose to EUR 1,457.5 billion in January 2025 from EUR 1,394.0 billion, mainly due to positive price changes (EUR 65.6 billion), partly offset by net sales (EUR 1.5 billion) and negative exchange rate changes (EUR 0.6 billion). The next releases are scheduled for 04 April 2025 (quarterly balance of payments through Q4 2024) and 16 April 2025 (monthly balance of payments through February 2025).