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/en/utenriksokonomi/statistikker/intinvpos/aar
15859
Record high net foreign assets
statistikk
2009-10-08T10:00:00.000Z
External economy
en
intinvpos, International investment position, abroad, assets, liabilities, net assets, IIP, reserves abroadForeign assets and liabilities , External economy
false

International investment position, 2008

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Record high net foreign assets

Foreign assets have increased more than the liabilities. Norway’s net foreign assets have risen by 35 per cent to NOK 1 654 billion in 2008. In 2008, net foreign assets equalled 65 per cent of GDP while in 2007 they amounted to 54 per cent of GDP.

Norway’s foreign assets and liabilities. End of year 2000-2008.

Considerable increase in portfolio investment

The assets increased from NOK 5 479 billion in 2007 to NOK 6 441 billion in 2008. Norway invested most in portfolio investments like foreign debt securities, equity and investment fund shares. The increase in debt securities was 39 per cent and by the end of 2008 they amounted to NOK 2 236 billion. The increase in stock is due to large investments by the Government Pension Fund - Global and a reduction in the Norwegian foreign exchange rate. These components also influenced the stock of portfolio equity, but the fall in stock market prices neutralized the former effects. There were also considerable placements in “other investments”, equal to NOK 1 383 billion, which mainly consist of loans, bank deposits and trade credits. They only increased by 2 per cent.

Increase in debt instrument liabilities and reduced equity debt

The liabilities increased from NOK 4 256 billion in 2007 to NOK 4 787 billion in 2008. The increase was largest for debt instrument liabilities which rose by 40 per cent. The increase is due mainly to weaker Norwegian foreign exchange rates but also to increased security loans to the credit institutions. The equity debt was reduced by as much as 61 per cent, mostly caused by the fall in stock market prices.

Record high net foreign assets

Net foreign assets increased from NOK 1 224 billion by the end of 2007 to NOK 1 654 billion by the end of 2008. This corresponds to an increase of 35 per cent.

About International Investment Position

International investment position (IIP) is the balance sheet of the stock of external financial assets and liabilities. IIP was introduced in the mid 1990s by the International Monetary Fund and is one of several statistics to improve the quality and availability of international economic statistics. The IIP statistics are based on the same principles and definitions as the balance of payments (BoP) financial account. This means that changes in the stock of IIP shall, in principle, be consistent with the transactions, valuation changes and other adjustments in the balance of payments financial account.

Nevertheless, some use of different sources and production processes may entail deviations between the two statistics. IIP is primarily classified by function, i.e. direct investment, portfolio investment, other investment and reserve assets. IIP and BoP use the directional principle for claims/liabilities that are direct investments between groups of companies (international concerns), which means claims/liabilities are netted in the IIP and BoP balance sheet.

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