Euro area current account surplus narrows to €265bn, ECB says
ECB data show the euro area current account surplus fell to €265bn (1.6% of GDP) in the year to Q2 2026, while net international investment assets rose to €1.94tn.
What you need to know
The euro area's current account surplus was €265 billion (1.6% of GDP) in the four quarters to the second quarter of 2026, down from €304 billion a year earlier, the ECB reported. Net international investment position assets rose to €1.94 trillion, or 12.0% of GDP.
- The four-quarter current account surplus fell from €304bn to €265bn, or from 1.9% to 1.6% of euro area GDP
- The goods surplus narrowed from €318bn to €288bn, and the secondary income deficit widened from €172bn to €199bn
- The largest bilateral surplus was with the United Kingdom at €252bn; the largest deficit was with China at €184bn
Smaller goods surplus drives the decline
The ECB attributed the lower current account surplus mainly to a smaller goods surplus, which fell from €318 billion to €288 billion, and to a wider secondary income deficit, which grew from €172 billion to €199 billion. A higher primary income surplus, up from €8 billion to €26 billion, partly offset these moves, while the services surplus held steady at €150 billion.
Within goods, the release cites smaller surpluses for chemical products and for machinery and manufactured products, partly offset by a smaller energy deficit over the four quarters.
Bilateral balances and investment position
The euro area recorded its largest bilateral current account surplus with the United Kingdom, at €252 billion, up from €224 billion a year earlier, and its largest deficit with China, at €184 billion, up from €145 billion. The deficit with the United States widened from €54 billion to €119 billion.
Net international investment position assets stood at €1.94 trillion, or 12.0% of GDP, at the end of the second quarter, up from €1.89 trillion the previous quarter. The ECB said the €59 billion rise was driven mainly by larger direct investment net assets and lower net liabilities in other investment, partly offset by lower reserve assets. Gross external debt reached €18.05 trillion (111% of GDP).
What drove the change in the euro area current account surplus?
The ECB said the decline was mainly due to a smaller goods surplus (€318bn to €288bn) and a wider secondary income deficit (€172bn to €199bn), partly offset by a higher primary income surplus, while the services surplus stayed at €150bn.
Sources & context
- Euro area quarterly balance of payments and international investment position: second quarter of 2026 ↗ecb.europa.eu
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