International investment position and external debt
The data capture residents’ assets and liabilities vis-à-vis non-residents and vice versa. These figures are calculated over time based on balance of payments transactions and valuation changes.
International investment position
The coronavirus pandemic has brought the increase in Germany's net external assets to a halt. The country’s net international investment position (i.i.p.) shrank by €90 billion in the first quarter of 2020, its first drop in eight years. One factor in this decline was the slide in prices in global capital markets triggered by the coronavirus pandemic. Nevertheless, at €2.4 trillion, or 68% of gross domestic product (GDP), net i.i.p. remains at a high level.
External positions of enterprises from financial operations and trade credits
German enterprises constitute net debtors vis-à-vis non-residents: Standing at €1,328 billion at the end of April 2020, their liabilities arising from financial operations and trade credits, exceeded their corresponding assets of €963 billion by €365 billion.
Indices of exchange rate effects in the international investment position
A notable percentage of the financial assets and liabilities in Germany’s international investment position (i.i.p.) are denominated in a foreign currency. Exchange rate movements therefore have a major impact on the performance of the i.i.p. A specific index concept allows us to assess how the market value of external assets and external debt changes solely as a result of exchange rate movements