Eurozone current account surplus narrows in June

The Eurozone’s current account surplus narrowed to EUR 38.9 billion in June 2025, down from EUR 51.9 billion a year earlier, reflecting softer external balances across key components.

The decline was mainly driven by a contraction in the goods surplus, which fell to EUR 24.8 billion from EUR 35.2 billion, as exports slowed against resilient import growth. The services surplus also eased, slipping to EUR 21.4 billion from EUR 23.2 billion, suggesting a moderation in demand for financial, business, and transport services.

On the income side, the secondary income deficit widened slightly to EUR 14.7 billion from EUR 13.6 billion, reflecting higher transfers abroad, including EU budget contributions and remittances. However, this was partly offset by an improvement in the primary income balance, which rose modestly to EUR 7.5 billion from EUR 7.2 billion, thanks to stronger earnings from Eurozone residents’ overseas investments.

Despite the year-on-year narrowing, momentum improved on a monthly basis. On a seasonally adjusted basis, the current account surplus increased to EUR 35.8 billion in June from EUR 31.8 billion in May, surpassing market expectations of EUR 30.3 billion. This indicates that, while year-on-year comparisons remain weaker, external balances are stabilizing in the near term.

The softer goods and services surpluses highlight the challenges facing Eurozone exporters, who are contending with slower global demand, weaker trade flows with the U.S. and China, and the impact of ongoing tariffs. At the same time, the slight improvement in primary income shows resilience from financial inflows and investments abroad, helping to cushion the overall balance.

Looking ahead, the trajectory of the current account will depend heavily on whether global trade rebounds in the second half of 2025, as well as on commodity price developments that affect both energy imports and export competitiveness.

If Eurozone domestic demand strengthens further while external demand remains weak, the current account surplus could narrow further, reinforcing concerns about external imbalances and competitiveness.