Net foreign assets expand to €3.66 trillion in 2025
BBK Data

Net foreign assets expand to €3.66 trillion in 2025

Germany's net international investment position rose by €211.5 billion to €3,661.1 billion at the end of 2025, according to Deutsche Bundesbank data. Cross-border capital transactions drove the expansion despite negative valuation effects.

Capital transactions offset exchange rate losses

Total German external assets rose to €14,424.3 billion at the end of 2025 from €13,819.2 billion in 2024, while external liabilities expanded to €10,763.2 billion from €10,369.6 billion.

The resulting net foreign asset position widened by €211.5 billion.

Cross-border financial transactions added €823.2 billion to gross assets and €539.6 billion to liabilities, generating a net capital export of €283.6 billion.

However, total valuation effects reduced the net balance by €135.4 billion.

Negative currency exchange rate movements subtracted €228.2 billion, which was partially compensated by positive market price gains of €92.9 billion and other adjustments of €63.3 billion.

Portfolio and deposit holdings shift balances

Portfolio investment remained the largest component of Germany's external balance sheet, with foreign assets reaching €4,945.9 billion against foreign liabilities of €3,946.7 billion.

Net claims in other investment rose to €1,235.1 billion, driven by €804.0 billion in net currency and deposit balances.

Direct investment assets closed at €3,073.4 billion against €2,200.4 billion in foreign direct investment in Germany.

Reserve assets grew to €481.8 billion by year-end.

Surpluses burdened by currency friction

Germany's expanding net foreign wealth confirms its persistent role as a major global capital exporter.

However, currency losses of €228 billion expose the structural vulnerability of accumulated external claims.

Piling up cross-border surpluses provides questionable value if foreign exchange volatility continually erodes the real returns.

Source: Das deutsche Auslandsvermögen Ende 2025

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