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/en/utenriksokonomi/statistikker/intinvpos/aar
15865
Considerable increase in net foreign assets
statistikk
2010-10-12T10:00:00.000Z
External economy
en
intinvpos, International investment position, abroad, assets, liabilities, net assets, IIP, reserves abroadForeign assets and liabilities , External economy
false

International investment position, 2009

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Considerable increase in net foreign assets

Norway’s net foreign assets amounted to 79 per cent of GDP by the end of 2009. In 2008 the corresponding share was 61 per cent. Net foreign assets increased from NOK 1 537 billion in 2008 to NOK 1 889 billion in 2009. At the same time BNP was reduced from NOK 2 517 billion to NOK 2 381 billion.

Norway’s foreign assets and liabilities. End of year.

Norway’s foreign assets equalled NOK 6 127 billion by the end of 2009. This corresponds to a reduction of 5 per cent from 2008. There was a considerable increase in the stock of portfolio equity, equal to 44 per cent. This was due to both increase in the share prices in the international stock markets and large net purchases in 2009. This increase was however exceeded by a reduction in debt securities (- 24 per cent), “other investments” (- 21 per cent) and international reserves from 2008 to 2009. “Other investments” mainly include loans, bank deposits and trade credits.

Reduced foreign debt

Norway’s foreign debt was equal to NOK 4 238 billion by the end of 2009, which corresponds to a reduction of 13 per cent from 2008. There was a considerable increase in portfolio equity in 2009 by 55 per cent. This can be explained by an increase in the share prices in the Norwegian stock market. However, the reduction in debt securities (- 11 per cent) and “other investments” (- 30 per cent) was higher compared to total debt. Norway has for the first time since this statistics was established in 1998 more debt in portfolio investments then in “other investments”. In other words Norway has more debt in equity and debt securities than in loans, bank deposits and trade credits.

Record high net foreign assets

Net foreign assets increased from NOK 1 535 billion by the end of 2008 to NOK 1 889 billion by the end of 2009. This corresponds to an increase of 23 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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