Balance of payments, net foreign assets and foreign exchange reserve

Authors Autrup, Søren Lejsgaard; Kramp, Paul Lassenius; Pedersen, Erik Haller; Spange, Morten
Subject Balance of payments! foreign trade and external debt; household balance sheets; Capital flows and direct investments
Type Monetary Review  
Year 2015
Published 30 December 2015
Link to publication Monetary Review, 4th Quarter 2015
Abstract icon Since 1990, the current account of Denmark’s balance of payments1 has shown a surplus. This follows a long period of deficits. Consequently, the foreign debt, which peaked at approximately 45 per cent of the gross domestic product, GDP, in the second half of the 1980s, has made way for net foreign assets of the same magnitude, cf. Chart 1. The shift from a debtor to a creditor nation reflects a considerable increase in gross savings in the economy over the last 30-35 years.