Euro area current account surplus declines, external debt rises in Q3 2025
The Euro area's current account surplus decreased to €283 billion (1.8 percent of GDP) in the four quarters leading up to Q3 2025, down from €425 billion a year prior. Simultaneously, net external claims rose to €1.72 trillion, while gross external debt reached €16.96 trillion.
Shifting balances in trade and income
The Euro area's current account surplus saw a notable reduction, falling from €425 billion (2.8 percent of GDP) a year ago to €283 billion (1.8 percent of GDP) in the four quarters ending Q3 2025.
This decline was primarily driven by a shift in primary income, which moved from a €55 billion surplus to a €41 billion deficit.
Additionally, the secondary income deficit widened to €188 billion from €161 billion, and the services surplus decreased to €144 billion from €168 billion.
These movements were partially offset by an increase in the goods trade surplus, which rose to €368 billion from €362 billion, mainly due to higher chemical product surpluses and a reduced energy deficit.
China deficit widens, US balance shifts
A geographical breakdown of the current account reveals significant shifts in bilateral balances.
The largest bilateral surpluses were recorded with the United Kingdom (€206 billion) and Switzerland (€58 billion).
Conversely, the largest bilateral deficit was observed with China, widening to €144 billion from €85 billion a year prior.
The Euro area also registered a deficit with the United States, moving from a €9 billion surplus to a €32 billion deficit.
Key changes included an increased goods trade surplus with the US, rising from €193 billion to €247 billion, while the services deficit with the US also expanded from €136 billion to €179 billion.
External claims grow, debt burden increases
The euro area's net international investment position rose to €1.72 trillion, primarily due to positive price changes and increased reserve assets.
Gross external debt simultaneously climbed to €16.96 trillion, representing 108 percent of GDP.
This reflects evolving financial linkages and valuation effects on the euro area's global financial footprint.