Glossary:International Investment Position

The international investment position (IIP) is a statistical statement that shows at a point in time the value and composition of:

- external financial assets of residents of an economy that are claims on non-residents and gold bullion held as reserve assets, and

- external financial liabilities of residents of an economy to non-residents.

The difference between an economy’s external financial assets and liabilities is the economy’s net international investment position (NIIP), which may be positive or negative. Respectively, the NIIP provides an aggregate view of the net financial position (assets minus liabilities) of a country via-à-vis the rest of the world. A positive NIIP (assets higher than liabilities) qualifies an economy as net creditor, a negative NIIP (liabilities higher than assets) as net debtor nation, allowing for measuring the extent of external financial exposure of a country.

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Statistical data