The August balance included surpluses of €18 billion (~$20.2 billion) for goods and €13 billion (~$14.6 billion) for services. These were partly offset by deficits of €18 billion (~$20.2 billion) for secondary income and €4 billion (~$4.5 billion) for primary income, the ECB said.
In the 12 months to August 2026, the current account surplus was €250 billion (~$280.9 billion), or 1.5 per cent of euro area GDP, compared with €290 billion (~$325.8 billion), or 1.8 per cent of GDP, one year earlier. The ECB said the decline was mainly driven by a reduction in the goods surplus, from €320 billion (~$359.6 billion) to €290 billion (~$325.8 billion), and a larger secondary income deficit, from €179 billion (~$201.1 billion) to €207 billion (~$232.6 billion). These movements were partly offset by services surpluses rising from €140 billion (~$157.3 billion) to €153 billion (~$171.9 billion), and primary income surpluses rising from €9 billion (~$10.1 billion) to €14 billion (~$15.7 billion).
Euro area’s current account surplus fell to €9 billion (~$10.1 billion) in August 2026 from €27 billion (~$30.3 billion) in July, the European Central Bank said.
Goods and services posted surpluses of €18 billion (~$20.2 billion) and €13 billion (~$14.6 billion), partly offset by income deficits.
The 12-month surplus eased to €250 billion (~$280.9 billion), or 1.5 per cent of GDP.
In the financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €798 billion (~$896.6 billion), while non-residents’ net acquisitions of euro area portfolio investment securities totalled €1,105 billion (~$1.24 trillion) in the 12 months to August 2026, the ECB said in a press release.
Direct investment data showed euro area residents made net investments of €424 billion (~$476.4 billion) in non-euro area assets in the 12 months to August 2026, up from €211 billion (~$237.1 billion) one year earlier. Non-residents invested €89 billion (~$100 billion) in net terms in euro area assets over the same period, down from €122 billion (~$137.1 billion), according to the ECB.
Portfolio investment figures showed euro area residents’ net purchases of non-euro area equity decreased to €218 billion (~$244.9 billion) in the 12 months to August 2026 from €296 billion (~$332.6 billion) a year earlier, while their net purchases of non-euro area debt securities declined to €580 billion (~$651.7 billion) from €634 billion (~$712.4 billion). Non-residents’ net purchases of euro area equity rose to €446 billion (~$501.1 billion) from €419 billion (~$470.8 billion), and their net purchases of euro area debt securities rose to €659 billion (~$740.4 billion) from €412 billion (~$462.9 billion), the ECB said.
In other investment, euro area residents recorded net acquisitions of non-euro area assets of €804 billion (~$903.4 billion) in the 12 months to August 2026, up from €584 billion (~$656.2 billion) one year earlier. Their net incurrence of liabilities increased to €565 billion (~$634.8 billion) from €449 billion (~$504.5 billion), the ECB said.
The monetary presentation of the balance of payments showed that the net external assets, enhanced, of euro area MFIs increased by €260 billion (~$292.1 billion) in the 12 months to August 2026. The increase was mainly driven by the current and capital accounts surplus and, to a lesser extent, by euro area non-MFIs’ net inflows in portfolio investment equity, other investment and portfolio investment debt. These were partly offset by euro area non-MFIs’ net outflows in direct investment, the ECB said.
The Eurosystem’s stock of reserve assets increased to €1,858.8 billion (~$2.09 trillion) in August 2026 from €1,752.5 billion (~$1.97 trillion) in the previous month. The increase was mainly driven by positive price changes of €108.2 billion (~$121.6 billion), explained by an increase in the price of monetary gold, and to a lesser extent by net acquisitions of assets of €1.1 billion (~$1.2 billion). These were partly offset by negative exchange rate changes of €3.0 billion (~$3.4 billion), the ECB said.
Fibre2Fashion News Desk (KD)
