Countries with largest positive “Net International Investment Position” are considered as biggest lenders which significantly outflows its resources to foreign nations to gain returns on its unused funds.Surplus in budgets largely insists authorities to make foreign direct investment to take advantage of spared resources. Large current account surplus lead to largest positive international investment positions while deficit current account results in reduction of NIIP. Moderate to relatively large surpluses is necessary are all these countries for gradual induction to the list of biggest lending countries.
The Net International Investment Position (NIIP) is the difference of foreign assets owned by domestic residents and domestic assets owned by foreigners. As we discussed above, Countries with a positive NIIP are considered to be creditor nations. The table below help visualize the ten biggest creditor’s countries with highest positive NIIPs. All figures have been adjusted to nominal US dollars.
|Rank||Country||External Assets (in Millions)||External Liabilities (in Millions)||NIIP (in USD)||Per Capita (in USD)||As of|
|1||Japan||JPY 950,403,000||JPY 602,860,000||2,839,186,016,627||22,365||Jun. 2015|
|2||Germany||EUR 7,894,500||EUR 6,491,700||1,561,568,904,000||19,209||Jun. 2015|
|3||China||USD 6,433,693.033849||USD 4,969,705.434331||1,463,987,599,518||1,070||Jun. 2015|
|4||Hong Kong||HKD 35,130,704||HKD 27,340,262||1,005,012,132,995||137,699||Jun. 2015|
|5||Taiwan||USD 1,619,484||USD 662,792||956,692,000,000||40,825||Dec. 2014|
|6||Norway||NOK 12,406,252||NOK 6,612,862||736,343,670,006||141,893||Jun. 2015|
|7||Switzerland||CHF 4,086,728||CHF 3,414,062||718,436,595,499||86,771||Jun. 2015|
|8||Singapore||SGD 3,959,038.6||SGD 3,182,787.6||576,182,982,861||147,637||Jun. 2015|
|9||Netherlands||EUR 7,402,047||EUR 6,962,383.4||489,425,171,520||28,919||Jun. 2015|
|10||Russia||USD 1,225,497||USD 944,365||281,132,000,000||1,922||Jun. 2015|
The world’s largest debtor is now the world’s largest creditor. Japan’s debt-to-GDP ratio is nearly 230%, the worst of any major country in the world. Yet Japan remains the world’s largest creditor country, with net foreign assets of $2.8 trillion. China and Germany are effectively listed amongst the biggest lending countries with the largest NIIP which means the value of its domestically owned assets is less than its liabilities to foreign investors.
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