Euro Area Current Account Surplus Narrows to 28 Billion Euros in July as the 12 Month Goods Surplus Shrinks
The euro area recorded a current account surplus of 28 billion euros in July, 7 billion less than the 35 billion recorded in June, the European Central Bank said on 18 September. Over the 12 months to July the surplus came to 282 billion euros, or 1.7 percent of the area’s output, down from 298 billion euros and 1.9 percent a year earlier.
| Component | July balance, EUR billions |
|---|---|
| Goods | 36 |
| Services | 12 |
| Primary income | -2 |
| Secondary income | -18 |
| Current account | 28 |
Working day and seasonally adjusted transactions. Components may not sum exactly because of rounding.
Goods did the shrinking
On the 12 month view the fall came mainly from goods, where the surplus dropped to 289 billion euros from 341 billion, a decline of 52 billion on our calculation. The secondary income deficit widened to 205 billion euros from 178 billion. Working the other way, primary income switched from a deficit of 10 billion euros to a surplus of 36 billion, and the services surplus grew to 163 billion euros from 145 billion.
| Component, 12 months to July | 2026 | 2025 |
|---|---|---|
| Goods | 289 | 341 |
| Services | 163 | 145 |
| Primary income | 36 | -10 |
| Secondary income | -205 | -178 |
EUR billions. The current account surplus fell to 282 billion euros from 298 billion. Components may not sum exactly because of rounding.
Foreign buyers took more euro area paper than residents sent abroad
In the 12 months to July, euro area residents made net acquisitions of 815 billion euros of non-euro area portfolio securities while non-residents acquired 1,156 billion euros of euro area securities, a difference of 341 billion on our calculation. Within that, residents’ net purchases of foreign equity fell to 193 billion euros from 255 billion, and their net purchases of foreign debt securities rose to 622 billion from 608 billion. Non-residents’ net purchases of euro area equity rose to 525 billion euros from 439 billion, and of euro area debt securities to 631 billion from 378 billion.
Direct investment moved the other way. Euro area residents invested a net 357 billion euros abroad, up from 179 billion a year earlier, while non-residents invested a net 59 billion euros in the area, up from 40 billion. In other investment, residents acquired 786 billion euros of foreign assets, up from 520 billion, and incurred 537 billion euros of liabilities, up from 338 billion.
The monetary presentation shows the enhanced net external assets of euro area monetary financial institutions rising 263 billion euros over the 12 months, driven by the current and capital account surplus and by non-institution inflows into portfolio equity, portfolio debt and other investment, partly offset by non-institution outflows in direct investment and other flows.
Reserves edge down
The Eurosystem’s stock of reserve assets fell to 1,752.5 billion euros at the end of July from 1,755.4 billion a month earlier. Negative price changes of 1.9 billion euros and negative exchange rate changes of 1.7 billion outweighed net acquisitions of 0.7 billion.
Why it matters: For the euro area, the external accounts are still in surplus but the composition has shifted. The goods surplus, which covers trade in physical products, is 52 billion euros smaller than a year ago on our calculation, while services and primary income have improved. At the same time foreign investors bought more euro area securities than euro area investors bought abroad, an inward tilt in portfolio demand that on our reading sits alongside, rather than follows from, the trade position.
Outlook: The quarterly balance of payments, with data through the second quarter, is due on 2 October, and the next monthly release, covering August, on 20 October. This release carried no revisions to previous periods.
Sources: European Central Bank.
