International investment position

Germany's international investment position
In the second quarter of 2022, the German net international investment position (i.i.p.) rose by €148 billion to €2.8 trillion; that equates to 75% of gross domestic product (GDP). German claims on non-residents now stand at €12.0 trillion. This compares to German liabilities amounting to €9.2 trillion. 

The declines in market prices on the international equity and bond markets necessitate exceptionally high negative market price corrections. In net terms, market prices have a depressant impact of €140 billion. However, this is offset by the considerable positive exchange rate ef-fects resulting from the depreciation of the euro (€101 billion). The net effect on German external assets remains comparatively moderate, with a minus of €39 billion.

An economy’s i.i.p. captures the marked-to-market financial assets and liabilities of residents vis-à-vis non-residents at the end of each quarter. Thus, the i.i.p. provides information not only on the volume and structure of financial assets held abroad by residents, but also on those held in Germany by non-residents. The net i.i.p. as a percentage of GDP is a key indicator in the EU’s macroeconomic imbalance procedure (MIP).