Story: Balance of payments

Net international investment position

This table shows how the net international investment position (NIIP) is calculated at the end of any quarter. At the start of the quarter an international investment position is found by subtracting the total foreign investment in New Zealand from the total of New Zealand investments overseas. For a long time this has been a negative figure – that is, foreigners invested more and therefore acquired more assets in New Zealand that New Zealanders did overseas. The new capital flows both in and out of New Zealand for the period are then worked out, and the difference between them is added to or subtracted from the position at the start of the quarter. The resulting figure is the new NIIP at the end of the quarter.

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How to cite this page:

C. John McDermott and Rishab Sethi, 'Balance of payments - Other perspectives on the current account', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/diagram/23960/net-international-investment-position (accessed 20 January 2022)

Story by C. John McDermott and Rishab Sethi, published 11 Mar 2010