Germany’s gross external debt amounted to €6.1 trillion at the end of the fourth quarter 2023; relative to gross domestic product (GDP) it remained unchanged in the period under review.

Gross external debt constitutes only those financial assets and liabilities held by residents vis-à-vis non-residents with a repayment obligation such as payments for principal and/or interest. It includes financial instruments such as debt securities and loans. By contrast, financial instruments with no repayment obligation, such as shares or mutual fund shares, are excluded.

External debt is therefore a subdivision of the liabilities included in the international investment position (i.i.p.); accordingly, stocks are marked to market and valued at the applicable exchange rates as at the respective reporting date.

Focusing on external debt with fixed payment obligations makes it possible to gain an insight into the liquidity or solvency risk to which a country may be exposed. Pursuant to its Special Data Dissemination Standard Plus (SDDS Plus), the International Monetary Fund (IMF) requires that adherents disseminate a standardised data template on gross external debt.