The euro zone’s combined current account surplus narrowed sharply in March, largely due to a significant decline in the trade surplus, according to data released by the European Central Bank on Thursday.
The current account surplus, adjusted for seasonal and working-day factors, fell to €14.9 billion in March from €25.6 billion in the previous month.
However, based on unadjusted data, the surplus widened to €24.1 billion from €21.7 billion a month earlier.
The ECB said the current account recorded a €15 billion surplus in March 2026, down from €26 billion in the previous month.
Trade surplus decline pressures the current account
According to the ECB, the decline in the current account balance was driven mainly by a drop in the euro area’s trade surplus, which was likely linked to higher energy costs.
The euro area posted surpluses in several major categories during March.
Goods recorded a surplus of €14 billion, while services also posted a €14 billion surplus.
Primary income contributed an additional €2 billion surplus.
These gains were partly offset by a €16 billion deficit in secondary income, the ECB said.
The ECB’s Chart 1, which tracks the euro area current account balance in seasonally adjusted terms, showed a notable monthly decline in the overall surplus during March.
Annual surplus declines from the previous year
Over the 12 months to March 2026, the euro area current account surplus amounted to €275 billion, equivalent to 1.7% of euro area gross domestic product.
This marked a decline from the €368 billion surplus, or 2.4% of GDP, recorded one year earlier.
The figures indicate that the euro area’s external balance weakened over the past year despite continuing surpluses in goods and services trade.
Portfolio investment flows remain strong
The ECB also released details on developments in the financial account.
In the 12 months to March 2026, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €779 billion.
At the same time, non-residents’ net acquisitions of euro area portfolio investment securities reached €981 billion.
The data highlighted continued cross-border investment activity despite the decline in the current account surplus.
ECB highlights March balance details
The ECB said the euro area current account balance in March reflected mixed contributions across different sectors of the economy.
While goods and services continued to support the balance, weaker trade dynamics and the deficit in secondary income weighed on the final figure.
“The current account of the euro area recorded a surplus of €15 billion in March 2026, a decrease of €11 billion from the previous month,” the ECB said.
It added that “surpluses were recorded for goods (€14 billion), services (€14 billion) and primary income (€2 billion). These were partly offset by a deficit for secondary income (€16 billion).”
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