International investment position at the end of September 2019

Compared to the second quarter of 2019, Luxembourg’s external financial assets increased by 195 billion euros to reach 11 265 billion euros at the end of the third quarter of 2019. External financial liabilities increased by 199 billion euros and reached 11 230 billion euros at the end of September 2019. Revaluation effects explained these rises. Luxembourg’s net international investment position decreased however by 4 billion euros and reached 36 billion euros at the end of third 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 21 billion to reach 711 billion euros at the end of September 2019. The net asset position in the other investments (deposits and traditional credits, trade credits, other receivables or payables) decreased by 4 billion euros and reached 375 billion euros. The structural net liability position in the portfolio investments improved by 26 billion euros and reached 1 057 billion euros at the end of September 2019.

The amount outstanding in direct investments assets reached up 5 176 billion euros at the end of September 2019, having undergone positive revaluation effects (117 billion euros) that were however partially compensated by negative transactions (divestments of 91 billion euros). The amount outstanding in direct investments liabilities increased by 46 billion euros reaching up 4 465 billion euros at the end of September 2019. The later decrease was also triggered by large positive revaluation effects (88 billion euros), that were partially compensated by negative transactions (42 billion euros).

Portfolio investments were positively impacted by the recovery in stock prices. The amount outstanding in portfolio investments assets reached up 4 386 billion euros at the end of September 2019, after having increased by 176 billion euros which resulted from positive revaluation effects (121 billion euros) and from positive transactions (55 billion euros). The amount outstanding in portfolio investments liabilities reached up 5 444 billion euros at the end of September 2019, after having increased by 150 billion euros which resulted both from positive revaluation effects (108 billion) and from positive transactions (42 billion euros).

For other investments, the amount outstanding in assets reached up 1 472 billion euros at the end of September 2019, after having increased by 2 billion euros which resulted from positive transactions, that were partially compensated by negative impact in exchange rates. The amount outstanding in liabilities increased by 6 billion euros, up to 1 097 billion euros at the end of September 2019.

Table: Luxembourg's International Investment Position (billion euros)
	Amounts outstanding at the end of 2019 Q2	Transactions	Changes due to Exchange rates, Prices and Other changes in volume	Amounts outstanding at the end of 2019 Q3
Net external position	40	0	-4	36
Gross external assets	11 071	-13	208	11 265
Gross external liabilities	11 031	-13	212	11 230
Net direct investments	732	-49	29	711
Assets	5 151	-91	117	5 176
Liabilities	4 419	-42	88	4 465
Net porfolio invesments	-1 083	13	13	-1 057
Assets	4 210	55	121	4 386
Equity securities	1 960	-2	56	2 014
Debt securities	2 250	57	65	2 372
Liabilities	5 293	42	108	5 444
Equity securities	4 163	75	93	4 331
Debt securities	1 130	-32	14	1 112
Net financial derivatives	12	6	-12	6
Net other investments	379	30	-34	375
Assets	1 470	17	-15	1 472
Liabilities	1 091	-13	19	1 097
Reserve assets	0.86	0.05	0.03	0.94

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