Germany’s net international investment position (i.i.p.) rose by €564 billion in 2024. The three-dimensional account system analyses changes in the net i.i.p. from different perspectives.

Other adjustments, the current account balance (including investment income) and valuation effects led to surpluses in the income account. By contrast, effects stemming from financial derivatives generated deficits.

On balance, the instrument account showed strong inflows into portfolio investment and other investment as well as moderate growth in reserve assets and direct investment. Financial derivatives recorded only a marginal increase on balance. Growth in portfolio investment was mainly driven by other adjustments and, to a lesser extent, by positive exchange rate effects and transactions that were counteracted by negative market price effects. The increase in other investment was primarily transactions-based. On balance, it was chiefly transactions as well as other adjustments and positive exchange rate effects that led to net growth in direct investment. Growth in financial derivatives was driven primarily by transactions that were counteracted by negative market price effects. Reserve assets benefited from positive movements in the price of gold.

In the sector account, financial corporations (excluding MFIs) recorded the largest growth, followed by non-financial corporations, households and non-profit institutions serving households, and monetary financial institutions (MFIs). By contrast, the Bundesbank’s net external claims saw only modest growth. Only the net external position of the government sector registered moderate outflows on balance.

The three-dimensional account system analyses changes in the net i.i.p. from a range of perspectives: the income account establishes the link to balance of payments transactions and adds to valuation effects and other adjustments, the instrument account shows how changes in the net i.i.p. are reflected in the various functional categories of financial assets, and the sector account considers the domestic sectors involved.