Bopiip 2015.en
Bopiip 2015.en
Bopiip 2015.en
Page
1 Overview 4
Changes in the balance of payments and
international investment position in 2015 4
Special topic: Different presentation principles
for direct investment 8
Comments 8
2 Balance of payments 9
Current account 9
Goods 10
Services 11
Primary income 13
Secondary income 14
Capital account 15
Financial account 15
Direct investment 16
Portfolio investment 17
Other investment 18
Reserve assets 20
Derivatives 20
Statistical difference 21
3 International investment position 22
Factors influencing the international investment position 22
Foreign assets – summary 22
Direct investment 23
Portfolio investment 24
Derivatives 25
Other investment 25
Reserve assets 25
Foreign liabilities – summary 26
Direct investment 27
Portfolio investment 27
Derivatives 28
Other investment 28
Net international investment position 29
4 Special topic: Different presentation principles
for direct investment 31
Introduction 31
Methodological aspects 31
Asset/liability principle and directional principle 31
The importance of reverse investment 32
Reasons why different presentation principles are used
for direct investment 32
Breakdown of direct investment by means
of the two presentation principles 33
Classification by country 33
Breakdown by economic activity 34
In the financial account, net acquisition of financial assets Movements in the individual components of receipts
amounted to CHF 222 billion (2014: CHF 19 billion). varied. Financial services, the most important component
For assets, this is the highest net acquisition figure since of receipts, declined by 2%, as did receipts from tourism.
2007. They were acquired by Switzerland mainly in the A significant drop was also recorded in receipts from
form of direct investment and reserve assets. For liabilities, license fees (down 17%) and transport (down 16%). By
a net incurrence of CHF 161 billion was recorded (2014: contrast, exports of business services rose substantially
net reduction of CHF 30 billion). This was attributable, in (up 8%), as did those of telecommunications, computer
particular, to direct investment and other investment. The and information services (up 15%).
balance on the financial account, resulting from the net
acquisition of financial assets minus the net incurrence of An examination of expenses for foreign services also
liabilities, and including net derivatives, came to CHF 63 reveals differing movements for the individual components.
billion. On the one hand, a decline was recorded in expenses for
tourism (down 2%), transport (down 25%) and license
In the international investment position, stocks of foreign fees (down 8%). On the other, expenses rose for business
assets increased by CHF 42 billion to CHF 4,260 billion. services (the most important component of expenses), by
Transactions reported in the financial account were largely 7%, and for telecommunications, computer and information
offset by valuation losses on foreign assets, attributable services, by 5%. Imports of financial services remained
to exchange rate movements which reduced the value of unchanged, at CHF 4 billion.
foreign currency positions. Stocks of foreign liabilities
were up by CHF 116 billion to CHF 3,652 billion. As the For primary income (labour and investment income),
foreign currency share in liabilities was comparatively receipts amounted to CHF 124 billion and expenses to
low, the exchange rate losses had less of an impact here. CHF 109 billion, resulting in a receipts surplus of CHF 15
Furthermore, liabilities increased due to stock exchange billion, compared to CHF 6 billion in 2014. Receipts
gains on securities issued by domestic borrowers. Since from investment abroad were down by CHF 16 billion to
foreign liabilities grew much more substantially than CHF 122 billion due to lower income from direct investment.
foreign assets, the net international investment position Income from foreign investment in Switzerland (expenses)
decreased by CHF 74 billion to CHF 609 billion. declined by CHF 25 billion to CHF 86 billion, with
decreasing direct investment income being the key factor
on the expenses side as well. The expenses surplus
on labour income increased by CHF 1 billion to CHF 21
billion.
1 This report is based on the dataset for the fourth quarter of 2015, which was
released with the press release of 21 March 2016, ‘Swiss balance of payments
and international investment position, Q4 2015 and review of the year 2015’.
In CHF millions
Financial account (excluding derivatives), net 28 230 89 110 106 543 48 898 61 170
Net acquisition of financial assets 86 649 200 512 116 905 18 737 221 734
Net incurrence of liabilities 58 419 111 402 10 362 – 30 161 160 565
Direct investment, net 17 500 25 616 34 637 – 10 014 1 385
Net acquisition of financial assets 39 186 49 858 11 717 5 981 117 653
Net incurrence of liabilities 21 686 24 242 – 22 921 15 995 116 268
Portfolio investment, net 12 810 – 16 896 15 770 6 172 52 223
Net acquisition of financial assets – 6 992 – 4 490 19 337 7 888 38 058
Net incurrence of liabilities – 19 802 12 407 3 567 1 716 – 14 165
Other investment, net – 44 708 – 94 200 43 194 18 780 – 87 050
Net acquisition of financial assets 11 827 – 19 446 72 909 – 29 093 – 28 589
Net incurrence of liabilities 56 535 74 754 29 716 – 47 872 58 461
Reserve assets, net 42 628 174 591 12 943 33 961 94 612
Source: SNB
In CHF millions
Source: SNB
One of the consequences of introducing the new international Comprehensive tables covering the balance of payments
standard for reporting the balance of payments and the and international investment position can be found on the
international investment position (Balance of Payments SNB’s data portal, https://data.snb.ch, Tables, International
and International Investment Position Manual, BPM6) economic affairs. The data can be accessed in the form of
was a change in the principle underlying the presentation configurable web tables.
of direct investment in the balance of payments and the
international investment position. Direct investment is The data portal also has a section called ‘Notes –
now being stated according to the asset/liability principle International economic affairs’ which provides further
(gross principle), as are all other items. However, in information on the individual components and their
the Direct Investment report, the directional principle (net composition.
principle) continues to be used.
Current account 20
0
The most important current account components are –20
trade in goods and services on the one hand, and primary –40
income, i.e. income from direct investment, portfolio –60
investment, other investment, reserve assets and labour
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
income, on the other. These components are significantly
influenced by domestic and foreign economic developments, Goods Primary income Current account
Services Secondary income
the corporate earnings situation and conditions on the
financial markets. Until 2010, the current account was Source: SNB
Table 3
1 EU28.
Source: FCA
Services 100
Financial services remain the most important component 80
of services exports, although they have receded by more
than one-third since 2007. Their share in exports of 60
services as a whole has continually declined from 34% to 40
around 19%. The share of tourism receipts has remained
relatively stable at 15% in recent years, as has that of 20
transport, which, however, receded slightly to 10% at the 0
current end of the time series. The share of business
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
services – which comprise consulting as well as technical
and trade-related services – advanced from 12% to 13%. Transport Financial services Business services
Tourism Licence fees Residual services
Receipts from licence fees have also shown an upward
trend, their share rising from 9% to 16% between 2006 Source: SNB
Table 4
1 Excluding tourism.
2 EU28.
Source: SNB
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Direct investment Other investment
Portfolio investment Reserve assets
Source: SNB
Secondary income 30
On both the receipts and the expenses side, movements in
20
secondary income (current transfers) are driven by private
insurance companies (private transfers). Premium income 10
earned by insurance companies (excluding the service
component) is shown under receipts, and claims payments 0
under expenses. A significant item under expenses for 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
private transfers is transfers by immigrants to their home Receipts Expenses
countries. Public transfers cover contributions to Swiss
Source: SNB
social security schemes received from abroad, pension
payments to other countries, and public sector receipts and
expenses. The receipts side consists mainly of taxes and
fees, while the most important elements on the expenses
side are transfers to international organisations. Both on
the receipts and the expenses side, the share of public
transfers in secondary income amounts to 20% on average.
The financial account balance comprises all net acquisition financial account, net
of financial assets minus all net incurrence of liabilities
plus the balance from derivatives transactions. A positive CHF billions
financial account balance corresponds to an increase 250
in the net international investment position resulting from 200
cross-border investment and reflects a receipts surplus 150
in the current account. As a result of the savings surplus, the 100
Swiss economy traditionally shows a receipts surplus 50
in the current account and thus also a positive financial 0
account balance. –50
–100
Until 2008, the financial account balance was dominated –150
by net acquisitions of financial assets/net incurrences 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
of liabilities in direct investment and portfolio investment.
Direct investment Reserve assets
Since then, however, the direction and size of all Portfolio investment Financial account
components of the financial account have shown significant Other investment
fluctuations. In the past, other investment was dominated
Source: SNB
mainly by commercial banks’ foreign lending and deposit
business; but since 2008, the SNB’s transactions have
also played a key role. Up to 2008, reserve assets did not
influence the financial account to any great extent. This
changed in 2009. Since then, the SNB has been purchasing
large amounts of foreign currency, thereby making
a major contribution to the net acquisition of financial
assets.
Chart 13 Chart 14
Chart 15 Chart 16
–20 –30
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Debt securities Equity securities Total Debt securities Equity securities
Source: SNB Source: SNB
Table 5
Other investment
In CHF billions
Source: SNB
other investment: banks, claims against other investment: banks, claims against
and liabilities towards banks and liabilities towards customers
CHF billions CHF billions
300 120
200 100
100 80
60
0
40
–100
20
–200 0
–300 –20
–400 –40
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net acquisition of financial assets Net acquisition of financial assets
Net incurrence of liabilities Net incurrence of liabilities
Source: SNB Source: SNB
Chart 19 Chart 20
In principle, the balance of payments should be balanced, statistical difference in percent of current
account transactions
since it is drawn up according to the system of double-
entry bookkeeping. This means that all transactions must 4.0%
be recorded once as a credit (current account receipts,
3.0%
capital transfers from abroad, net incurrence of liabilities
or net reduction of financial assets) and once as a debit 2.0%
(current account expenses, capital transfers abroad, net 1.0%
acquisition of financial assets and net reduction of 0.0%
liabilities).
-1.0%
Over the last ten years, the statistical difference has been
positive in six out of ten years. This suggests either that
current account receipts (net incurrence of liabilities) have
been underestimated or that current account expenses
(net acquisition of financial assets) have been overestimated.
In 2015, the statistical difference amounted to CHF 4
billion. This accounts for less than 1% of the total transactions
recorded in the current account.
since 2006.
foreign assets, by currency
In 2015, direct investment amounted to CHF 1,487 billion, 40%
of which CHF 996 billion was equity and CHF 491 billion
35%
was made up of intragroup lending.
30%
25%
20%
15%
10%
5%
0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CHF USD EUR Other
Source: SNB
Chart 25
1 250
1 000
750
500
250
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Equity capital Debt instruments
Source: SNB
1 200
Cross-border holdings held by investors resident
in Switzerland primarily comprise foreign-issued debt 1 000
securities. The latter’s share in portfolio investment 800
amounted to almost 60% over the last ten years. Overall,
600
stocks of portfolio investment rose strongly until 2007.
This increase was due, on the one hand, to purchases of 400
securities and, on the other, to rising share prices. In 2008, 200
shares lost considerable value in the wake of the financial 0
crisis; despite new investment, stocks of portfolio investment
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
fell to the level of 2005. Since 2009, stocks have been
mainly driven by exchange rate and stock market-related Debt securities Collective investment schemes
Shares
valuation changes. Between 2010 and 2012, investors
engaged in net sales of foreign-issued securities, causing Source: SNB
Table 6
In CHF billions
Source: SNB
150
In 2008, the stocks of derivatives rose significantly, due
125
in particular to the expansion in the reporting population.
Since 2008, the share of derivatives in total foreign 100
assets has halved to the current 3%. In the year under 75
review, stocks amounted to CHF 118 billion.
50
Other investment 25
As in the balance of payments, other investment is broken
0
down into currency and deposits, loans, and other assets.
Within the currency and deposits and the loans categories, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
domestic creditors are differentiated by sector as follows: Source: SNB
200
150
100
50
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USD EUR Other currencies Gold
Source: SNB
125
Other investment
As in the balance of payments, other investment is broken 100
down into currency and deposits, loans, and other 75
liabilities. Within the currency and deposits and the loans
categories, domestic creditors are differentiated by sector 50
as follows: Swiss National Bank, banks, public sector, and 25
other sectors. Other sectors is made up mainly of corporate
0
short-term and long-term liabilities abroad, which are not
included under direct or portfolio investment. Banks 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
dominate other investment, while public sector liabilities Source: SNB
are insignificant.
Table 7
In CHF billions
Source: SNB
Since statistics on the international investment position net international investment position
were first collected in 1985, Switzerland’s foreign CHF billions
assets have been higher than its foreign liabilities; its net 850
international investment position has therefore been
positive throughout this period. This reflects both the high 800
saving rate and the limited investment possibilities in
Switzerland. By international standards, Switzerland’s net 750
international investment position is very high, placing it
seventh in the world. Countries with the highest net 700
international investment position include major economies
such as Japan, China and Germany, as well as smaller 650
ones like Hong Kong, Singapore and Norway (source: IMF,
International Investment Position, Net). As a share 600
of GDP, the net international investment position in 2015
550
stood at 95%.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Over the last ten years, the net international investment Source: SNB
Chart 38
share prices
2006 = 100, end of year
Index
160
140
120
100
80
60
40
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Swiss Performance Index Stoxx TMI
Dow Jones Average
Sources: Bloomberg, Thomson Reuters Datastream
Table 1
Table 2
Asset/liability principle: Five most important destinations In CHF Directional principle: Five most important destinations, In CHF
Direct investment, assets billions Direct investment abroad billions
Asset/liability principle: Five most important investing In CHF Directional principle: Five most important investing In CHF
countries, Direct investment, liabilities billions countries, Direct investment in Switzerland billions
4 The rise in the stocks of assets and liabilities in intragroup lending between
2013 and 2014 is a break in the series, attributable to the introduction of the
new financial account surveys.
5 The balance (net figure) is identical for both presentation principles. Using the
abbreviations in table 1, this can be presented as follows: Net (N) = assets (A) –
liabilities (L) = (A1 + A2 – (L1 + L2) = Swiss direct investment abroad (1) – foreign direct
investment in Switzerland (2) = (A1 – L1) – (L2 – A2) = (A1 + A2) – (L1 + L2).
Table 3
CHF billions
175
150
125
100
75
50
25
0
–25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Directional principle: Direct investment abroad (1)
Directional principle: Direct investment in Switzerland (2)
Asset/liability principle: Assets (A)
Asset/liability principle: Liabilites (L)
Source: SNB
Chart 3
CHF billions
150
125
100
75
50
25
0
–25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Directional principle: Direct investment abroad (1)
Directional principle: Direct investment in Switzerland (2)
Asset/liability principle: Assets (A)
6 The rise in the stocks of assets and liabilities in intragroup lending between Asset/liability principle: Liabilites (L)
2013 and 2014 is a break in the series, attributable to the introduction of the new
financial account surveys. Source: SNB
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