Foreign wealth of the Netherlands is growing fast

26/06/2015 15:00

The net foreign wealth of the Netherlands has a reached record high of 659 billion euros in the first quarter of 2015. This external wealth consists of foreign property of Dutch households and organisations minus Dutch possessions of foreign parties. In previous quarters the developments on the stock market and the currency changes turned out positive for the Dutch position.

External wealth of the Netherlands

Trade balance feeds external wealth

The external wealth of the Netherlands increased by 135 billion in the first quarter of 2015 to a  record of 659 billion euros. The changes in external wealth is partly caused by the balance of  investments by Dutch people abroad and by foreign people in the Netherlands. Thanks to the trade surplus, the Netherlands has money for foreign investments.

Dip in euro has a positive effect

Value changes of existing property, gained by investments in the past,  play an equally important role. These are mainly changes in exchange rates and stock market developments for shares and bonds. In recent quarters these value changes were the main stimulants of the external wealth. In the fourth quarter of 2014 changes in exchange rates produced the main positive effect. In the first quarter of 2015 there was also a strongly positive effect of the devaluation of the euro. This effect is positive because the value of Dutch property is worth less for owners outside the Eurozone, and vice versa. Pension funds and insurers saw their foreign property increase in value.

Value changes of external wealth by cause

Source:

StatLine, Key figures by sector; National Accounts