International investment position at the end of the second quarter of 2016
Compared to the first quarter of 2016, Luxembourg’s external financial assets increased by 177 billion euros to reach 9 739 billion euros at the end of the second quarter of 2016. External financial liabilities increased by 174 billion euros and reached 9 726 billion euros at the end of the second quarter of 2016. Luxembourg’s net international investment position, which corresponds to the difference between external financial assets and liabilities, thus increased by 3 billion euros and reached 13 billion euros at the end of the second quarter of 2016. This improvement of the net international investment position is broadly attributed to a positive impact of revaluations.
In the various components of the net external position, the net asset position in direct investments decreased by 10 billion to reach 476 billion euros at the end of June 2016. The net asset position in the other investments (deposits and traditional credits, trade credits, other receivables or payables) and the net position in the financial derivatives deteriorated respectively by 8 billion and 24 billion euros. The structural net liability position in the portfolio investments decreased by 46 billion to reach 756 billion euros at the end of June 2016.
The amount outstanding in direct investments assets reached up 4 806 billion euros at the end of June 2016, having undergone positive revaluation effects (52 billion euros) compensated partially with large negative transactions (22 billion euros). The amount outstanding in direct investments liabilities increased by 40 billion euros reaching up 4 330 billion euros at the end of June 2016. The later increase was triggered by large positive revaluation.
The amount outstanding in portfolio investments assets reached up 3 428 billion euros at the end of June 2016, after having increased by 85 billion euro (among which 62 billion euros resulted from positive revaluation). The amount outstanding in portfolio investments liabilities reached 4 184 billion euros at the end of June 2016, after having increased by 39 billion euro under significant positive revaluation.
For other investments, the amount outstanding in assets increased by 36 billion euros reaching up 1 290 billion euros at the end of June 2016. This increase resulted from large positive transactions. The amount outstanding in liabilities increased by 44 billion euros, up to 987 billion euros at the end of June 2016. The later increase was explained by positive transactions (15 billion euros) and positive effect due to exchange rate changes (29 billion euros).
Detailed statistical data is available on the BCL’s website (www.bcl.lu).
Table 1 : Luxembourg International Investment Position (billion euros)