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
Bar chart Germany's 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 debt
External Debt

Germany’s gross external debt stood at €5.4 trillion as at the end of June 2020 and is rising. Likewise, as a percentage of gross domestic product, it increased.

The external position of the Bundesbank, International reserves and foreign currceny liquidity of the Eurosystem
The external position of the Bundesbank

Bundesbank’s external position stood at €758 billion as at the end of August 2020, with claims from the TARGET2 payment system worth €1056 billion making up around 78% of total assets.

External position of banks (MFIs)
External claims and liabilities of banks (MFIs) in Germany

The assets of the banks (nearly two trillion euros) are approximately twice as high as the liabilities.

External positions of enterprises from financial operations and trade credits
External claims an liabilities of enterprises in Germany

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.

International investment position: three-dimensional account system presenting changes in net external assets
Three-dimensional account system presenting changes in net external assets

In the first quarter of 2020, Germany's net foreign assets shrank by €90 billion. The three-dimensional account system analyses the change in net foreign assets from different perspectives.

Indices of exchange rate effects in the international investment position
Indices of exchange rate effects in the IIP

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