In the first quarter of 2020, Germany’s net international investment position shrank by €90 billion compared with the previous quarter – its first drop in eight years. One factor in this decline was the slide in prices in global capital markets triggered by the coronavirus pandemic. Negative market price effects resulted in a net loss of €103 billion. Overall, net international investment position remained at a high level of €2.4 trillion, or 68 percent of gross domestic product (GDP). 

An economy’s international investment position captures the marked-to-market financial assets and liabilities of residents vis-à-vis non-residents at the end of each quarter. The net international investment position – i.e. assets minus liabilities – indicates whether an economy is a net creditor or net debtor to the rest of the world.