Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
Denmark's IIP reached new heights in 2021
Denmark’s net international investment position (IIP) reached a record in the 4th quarter of 2021 with kr. 1,888 billion. The net IIP is the difference between Denmark's assets abroad and the foreign assets in Denmark, also called the liabilities. The value of both assets and liabilities increased significantly in 2021.
Denmark's net IIP grew to a record level of kr. billion 1,888 in 2021
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Denmark’s net international investment position (IIP) reached a record in the 4th quarter of 2021 with kr. 1,888 billion. The net IIP is the difference between Denmark's assets abroad and the foreign assets in Denmark, also called the liabilities. The value of both assets and liabilities increased significantly in 2021.
The net IIP is equivalent to the Danes' savings abroad and amounts to approximately kr. 322,000 per Dane. A large part of the assets abroad is owned through pension companies, investment funds and Danish enterprises. The investments are placed in many different asset types, countries and currencies. About 0.3 per cent of Denmark's foreign assets were invested in Russia and Ukraine at the end of 2021.
Large increase in Denmark's net IIP in 2021
Denmark's net IIP grew by kr. 285 billion last year. In the 1st quarter alone, it grew by kr. 187 billion. This is the largest increase observed in one quarter. The large increase in 2021 is due to the combination of capital gains on foreign shares, exchange rate gains and a continued significant surplus on the current account of the balance of payments, ie. the surplus from Denmark's foreign trade.
Falling stock market prices in January and February 2022 have further increased Denmark's net IIP. This may seem paradoxical and is due to the price fall of foreign shares being smaller than the price fall of Danish shares. The value of Denmark's assets abroad has thus fallen less than the value of foreign assets in Denmark, ie. the liabilities.
Denmark’s net IIP is the second largest in the EU
Denmark’s net IIP amounts to 76 per cent of GDP in the fourth quarter of 2021. The net IIP is the second-largest in the EU relative to GDP and is only surpassed by the Netherlands1. Outside the EU, the Danish net IIP is also surpassed by Switzerland's and Norway's net IIP. The net IIP creates wealth income for Denmark, for example in the form of interest income and dividends. Wealth income amounted to kr. 92 billion last year or 3.7 per cent of GDP.