German Bundesbank reports Germany’s current account surplus climbed to EUR 24.1 billion in November 2024

The German Bundesbank published Germany’s balance of payments results for November 2024, showing a current account surplus of EUR 24.1 billion, up EUR 10.4 billion from the previous month. The increase was driven by a higher surplus in goods trade and a swing to a surplus in “invisible” transactions covering services, primary income and secondary income. The goods trade surplus widened by EUR 3.9 billion to EUR 19.5 billion as expenses fell more than receipts. The balance on invisible transactions shifted from a EUR 1.8 billion deficit to a EUR 4.7 billion surplus, largely reflecting a EUR 5.3 billion reduction in the services deficit to EUR 6.0 billion, attributed mainly to a seasonal decline in travel spending; net primary income rose by EUR 1.3 billion to EUR 16.6 billion, supported by higher income from investment fund shares and dividends on foreign securities holdings, while the secondary income deficit was broadly unchanged at EUR 5.9 billion. On the financial account, cross-border securities transactions recorded net capital imports of EUR 14.1 billion, with foreign investors purchasing German securities net of EUR 26.2 billion mainly public-sector bonds (EUR 19.1 billion) and money market paper (EUR 8.5 billion), while domestic investors bought foreign securities net of EUR 12.2 billion. Net outflows were recorded in financial derivatives (EUR 2.4 billion), direct investment showed net capital exports of EUR 3.2 billion, other investment recorded net capital exports of EUR 33.2 billion including an increase in the Bundesbank’s net external claims and a EUR 2.1 billion rise in TARGET claims on the European Central Bank, and the Bundesbank’s currency reserves increased by EUR 1.7 billion at transaction values.