Euro area current account surplus declines, investment position strengthens
The euro area's current account surplus decreased to €276 billion (1.7% of GDP) in 2025, down from €416 billion (2.7% of GDP) a year earlier. Concurrently, its net international investment position strengthened to €1.76 trillion (11.0% of GDP) by the end of 2025.
Shifting balances in external trade
The euro area's current account surplus decreased significantly to €276 billion (1.7% of GDP) in 2025, down from €416 billion (2.7% of GDP) a year earlier.
This reduction was primarily driven by a shift in the primary income balance, which moved from a €54 billion surplus to a €44 billion deficit.
Further contributing to the decline were a narrower services surplus, falling from €186 billion to €144 billion, and a wider secondary income deficit, increasing from €169 billion to €186 billion.
These developments were partially mitigated by a larger goods surplus, which rose from €345 billion to €362 billion.
The improvement in the goods balance was mainly attributed to a smaller deficit for energy products (€229 billion from €259 billion) and a larger surplus for chemical products (€298 billion from €277 billion).
Conversely, the services surplus was impacted by larger deficits in other business services and intellectual property charges, despite a widening surplus in telecommunication, computer, and information services.
The primary income shift was largely due to a strong reduction in the direct investment surplus, from €102 billion to €11 billion.
Strengthening net assets and global ties
The euro area's net international investment position (IIP) showed increased net assets, reaching €1.76 trillion (11.0% of GDP) by the end of 2025, up from €1.59 trillion in the previous quarter.
This €166 billion increase was primarily driven by larger net assets in direct investment (€3.00 trillion) and reserve assets (€1.77 trillion), partially offset by higher net liabilities in portfolio equity (€4.07 trillion).
Geographically, the euro area's current account showed its largest bilateral surpluses with the United Kingdom (€229 billion) and Switzerland (€55 billion).
Conversely, the largest bilateral deficits were recorded with China (€155 billion) and the United States (€57 billion).
Gross external debt stood at €17.00 trillion (107% of GDP) at the end of Q4 2025, an increase of €20 billion from the prior quarter.
The release also incorporated data revisions for Q1 2022 to Q3 2025, reflecting updated national contributions and the inclusion of Bulgaria in the euro area composition for historical periods.