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
Germany's international investment position

Recovery made from coronavirus-related slump at year-end: on balance, Germany’s net international investment position (i.i.p.) at end-2020 reached a new record high of €2.5 trillion or 76.3% of gross domestic product (GDP), thereby recovering from its coronavirus-related slump in the second quarter, albeit with relatively low annual growth of €64 billion – on an average of the past five years, growth amounted to €257 billion.

External debt
External Debt (Gross)

At end-2020, Germany’s gross external debt amounted to €5.5 trillion. This represents an increase relative to GDP.

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 €712 billion as at the end of February 2021, with claims from the TARGET2 payment system worth €1044 billion making up around 79% of total assets. These are followed by international reserves, comprising gold and foreign exchange reserves, including the special drawing rights allocated by the International Monetary Fund (IMF), which account for a total of 12% of assets. At 77%, issuance of euro cash accounted for the bulk of liabilities. Deposits of non-euro area residents amount to 15% of foreign liabilities.

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 1390 billion at the end of February 2021, their liabilities arising from financial operations and trade credits, exceeded their corresponding assets of 1057 billion by 332 billion. Compared with the previous month, this represents a change in the magnitude of 9 billion.

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

Germany’s net i.i.p. rose by €64 billion in 2020. The three-dimensional presentation concept analyses the change in the net i.i.p. 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