International investment position at the end of March 2019

Compared to the last quarter of 2018, Luxembourg’s external financial assets increased by 439 billion euros to reach 11 025 billion euros at the end of the first quarter of 2019. External financial liabilities also increased by 441 billion euros and reached 11 000 billion euros at the end of March 2019. These rises are explained both by positive impact of revaluations and by new transactions. Luxembourg’s net international investment position decreased however by 2 billion euros and reached 25 billion euros at the end of first quarter of 2019, as the liabilities increased more than external financial assets. 

In the various components of the net external position, the net asset position in direct investments decreased by 4 billion to reach 685 billion euros at the end of March 2019. The net asset position in the other investments (deposits and traditional credits, trade credits, other receivables or payables) decreased by 19 billion euros and reached 372 billion euros. The structural net liability position in the portfolio investments decreased by 21 billion euros and reached 1 042 billion euros at the end of March 2019. 

The amount outstanding in direct investments assets reached up 5 195 billion euros at the end of March 2019, having undergone large positive transactions (investments of 55 billion euros). The amount outstanding in direct investments liabilities increased by 68 billion euros reaching up 4 510 billion euros at the end of March 2019. Large positive transactions also triggered the later increase. 

Portfolio investments were positively impacted by the recovery in stock prices in the first quarter of 2019. The amount outstanding in portfolio investments assets reached up 4 152 billion euros at the end of March 2019, after having increased by 307 billion euros which resulted from positive revaluation effects (266 billion euros), as well as from positive transactions (41 billion euros). The amount outstanding in portfolio investments liabilities reached up 5 194 billion euros at the end of March 2019, after having increased by 286 billion euros which resulted both from positive revaluation effects (264 billion) and from positive transactions (22 billion euros).

For other investments, the amount outstanding in assets reached up 1 444 billion euros at the end of March 2019, after having increased by 50 billion euros which resulted largely from positive transactions. The amount outstanding in liabilities also increased by 69 billion euros, up to 1 072 billion euros at the end of March 2019. The later increase was also explained by positive transactions. 

Table: Luxembourg International Investment Position (billion euros)

 

	Amounts outstanding at the end of 2018Q4	Transactions	Changes due to Exchange rates, Prices and Other changes in volume	Amounts outstanding at the end of 2019Q1
Net external position	26.8	0.7	-2.3	25.2
Gross external assets	10 586	140	299	11 025
Gross external liabilities	10 559	139	301	11 000
Net direct investments	689	2	-6	685
Assets	5 131	55	9	5 195
Liabilities	4 442	54	14	4 510
Net porfolio invesments	-1 063	20	1	-1 042
Assets	3 845	41	266	4 152
Equity securities	1 769	-17	196	1 948
Debt securities	2 076	58	70	2 204
Liabilities	4 908	22	265	5 194
Equity securities	3 822	19	249	4 090
Debt securities	1 086	2	16	1 104
Net financial derivatives	8.4	0.3	0.5	9.1
Net other investments	391	-21	2	372
Assets	1 393	43	8	1 444
Liabilities	1 002	64	6	1 072
Reserve assets	0.82	-0.00	0.012	0.83

 

 

Source: BCL

 

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