German Bundesbank reports Germany's May current account surplus fell to EUR 10.4 billion on deficit in invisible transactions

The German Bundesbank published balance of payments data showing Germany's current account surplus narrowed sharply in May 2026 to EUR 10.4 billion, down EUR 6.2 billion from April. The main driver was a pronounced swing in invisible current transactions, which cover services and primary and secondary income, from a surplus into a deficit. The surplus in goods trade widened only slightly. The goods surplus rose by EUR 0.5 billion to EUR 15.4 billion as payments fell somewhat more than receipts. Invisible transactions moved from a EUR 1.7 billion surplus to a EUR 5.0 billion deficit. Within that, the services deficit widened by EUR 1.7 billion to EUR 7.2 billion, as higher net travel spending and lower net receipts from fees for the use of intellectual property more than offset lower net expenditure on other business services. The larger shift came from primary income, where net receipts fell by EUR 6.3 billion to EUR 5.7 billion, mainly because dividend payments to nonresidents on their securities holdings increased, as is typical in May. The secondary income deficit narrowed by EUR 1.2 billion to EUR 3.5 billion, partly because dividend payments also raised government tax receipts from nonresidents. Germany recorded net capital exports of EUR 13.8 billion in May, up from EUR 3.2 billion in April. Direct investment showed net capital imports of EUR 9.9 billion, as foreign companies provided funds to their affiliates in Germany while German companies increased direct investment abroad more modestly. Portfolio investment recorded net capital exports of EUR 1.6 billion and financial derivatives generated net outflows of EUR 5.7 billion. Other investment posted net capital exports of EUR 15.5 billion, driven by outflows from monetary financial institutions excluding the Bundesbank and from the government. The Bundesbank's reserve assets increased by EUR 0.8 billion at transaction values.