The Maltese economy recorded an estimated net international investment position of €1.70 billion as at the end of last year, the National Statistics Office said.

The position refers to net foreign assets and is the balance of foreign assets less foreign liabilities.

As at December, total foreign assets increased by €2.76 billion over the position prevailing in December the previous year.

Total foreign liabilities rose by €1.62 billion during the corresponding period, resulting in an overall increase in the IIP of €1.14 billion.

The level of Malta’s total foreign assets abroad amounted to €47.35 billion as at the end of December. Other Investment and Portfolio Investment accounted for 53.6 per cent and 42.3 per cent of total foreign assets respectively.

The increase in Malta’s foreign assets was characterised mainly by a €2.83 billion increase in debt securities, primarily bonds and notes.

This was partly offset by a €0.23 billion decline in other investments due to a fall in loans generated by the banking sector.

During the period under review, Malta’s foreign liabilities were estimated at €45.65 billion.

Accounting for 70.9 per cent of total foreign liabilities, other investment reached €32.35 billion from €31.22 billion recorded in December 2011. A rise in currency and deposits was the main contributor to this growth.

Foreign direct investment, representing 27.0 per cent of total foreign liabilities, increased to €12.34 billion from €11.96 billion registered a year earlier.