Net international investment position

Net international investment position (NIIP) is like a giant spreadsheet that shows how much money different countries have invested in each other. A country’s NIIP tells you how much it has lent out in investments (assets) and how much it owes (liabilities) to other countries.

To keep track of this, the NIIP is like a big list that adds up all the money a country has lent to other countries through investments, minus all the money that country has borrowed from other countries.

If the result is positive, it means a country has lent out more money in investments than it has borrowed, which is good. If the result is negative, it means it has borrowed more money than it has lent out, which isn’t so good.

The NIIP helps countries keep track of their investments and how much money they owe or are owed. This helps keep countries financially balanced.