• Net International Investment Position (NIIP) measures the gap between a country’s holdings of foreign assets and the foreigner’s holdings of that country’s assets.

  • It can be seen as the balance of the country in relation to the rest of the world at a certain point in time.
  • NIIP is an important barometer of the country’s financial condition and creditworthiness.
  • A country with a positive NIIP is a creditor country, and a country with a negative NIIP is a debtor country.