## d-7-sectoral-breakdown-of-direct-investment

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---

### Background: rationale for sectoral breakdown of Direct Investment (DI)
- DI is the only functional category in the balance of payments and the international investment position (IIP) standard components within external sector statistics (ESS) that is not presented by institutional sector; BPM6 recognizes sectoral breakdown as important and states that direct investment by institutional sector should be shown as a supplementary item where relevant (BPM6, paragraph 2.32 and table 7.2).
- Proposals under consideration:
  - include the sectoral breakdown of direct investment in the standard components of the balance of payments and the IIP rather than as supplementary items;
  - include the current assets and liabilities components as memorandum items to the standard components;
  - review the current classification of direct investment to avoid numerous components under a single functional category.
- Benefits of sectoral classification:
  - allows comparison and complementary use of ESS data with SNA, MFS, and GFS datasets;
  - facilitates analysis of net foreign lending or borrowing of each domestic sector and detection of external sustainability and vulnerability issues by sector;
  - supports the Handbook on Securities Statistics dataset and enables integrated economic accounts.
- Support for the Balance Sheet Approach (BSA):
  - sectoral DI breakdown provides details on external positions for domestic sectors, aiding BSA analysis of balance sheet weaknesses and macrofinancial vulnerabilities (BPM6, paragraphs 14.57 to 14.66);
  - addresses a key data gap for building the BSA matrix by providing sectoral classification in the IIP, enabling aggregation of international accounts to build the balance sheet matrix (paragraph 14.59 of BPM6) and comparison with SNA, MFS, and GFS balance sheets (paragraphs 2.32 and 2.34 of BPM6).

### Issues for discussion: scope, classification, and presentation
- Whether sectoral breakdown of DI should be standard components or remain supplementary/memorandum:
  - Recommendation: classify DI by resident institutional sector as for other functional categories to close a data gap and facilitate comparison with other datasets.
- Proposed institutional sectors (to match BPM6 or BPM7 as updated):
  - central bank,
  - deposit-taking corporations, except the central bank,
  - general government,
  - other financial corporations,
  - nonfinancial corporations, households, and NPISHs.
- Clarification on direct investors vs direct investment enterprises:
  - direct investor could be individuals/households; enterprises; investment funds; governments or international organizations; nonprofit institutions in an enterprise that operates for profit; estates/trusts; or combinations thereof (BPM6 6.20);
  - a direct investment enterprise is always a corporation (statistical term includes branches, notional resident units, trusts, quasi‑corporations, and investment funds); households or governments can be direct investors but cannot be direct investment enterprises (BPM6 6.24);
  - direct investment of the central bank and other deposit‑taking corporations is needed for aggregates consistent with monetary and financial statistics (BPM6 2.32).
- Instrument and maturity classification of DI:
  - two main financial instrument categories: equity and investment fund shares, and debt instruments;
  - "debt instruments" category includes debt securities; currency and deposits; loans; insurance, pension, and standardized guarantee schemes; trade credits and advances; and other accounts between related companies (not disaggregated by specific instruments in DI classification);
  - only debt securities (the only negotiable debt instrument) are requested as a supplementary item;
  - maturity breakdown of DI is not requested in the standard components of BPM6;
  - by convention, debt instruments between related companies are classified as long-term instruments;
  - No change is proposed to the instrument and maturity classification of DI.
  - Note: "A new ECB guideline to be implemented in March 2021, requires the euro area countries to report separated debt instruments."
- Review of standard, memorandum, and supplementary items under DI given sectoral classification:
  - standard components contribute to totals and balancing items; memorandum items are part of the standard presentation but not used for totals; supplementary items are outside the standard presentation and compiled depending on circumstances (BPM6 paragraph 1.15).
  - Because standard components feed aggregated totals, only one primary breakdown under DI standard components is feasible; the note proposes the sectoral breakdown be the standard components.
  - The current standard breakdown (used to derive quarterly directional values) would be included as memorandum items to preserve the ability to derive directional figures.
  - The current supplementary breakdown relating to UCP residency between fellows used to derive the quarterly directional principle would remain supplementary.
- Reinvestment of earnings:
  - reinvestment of earnings could be separately identified in the financial account as an "of which" memorandum item;
  - financial account currently records the same standard components as the IIP except for reinvestment of earnings, which is reported as a separate item in the financial account and aggregated to the total DI equity in the IIP.
  - Recommendation: break down reinvestment of earnings by institutional sector and aggregate it to equity and investment fund shares in the financial account standard components while also separately identifying it as a memorandum "of which" item; reinvested earnings would remain a separate standard component in the primary income account.
- Memorandum items proposals:
  - include current standard components used to derive directional values to enable calculation of directional figures quarterly; include reinvestment of earnings of the financial account as a memorandum item.
- Supplementary items proposals:
  - Annex IV shows 10 percent or fewer countries report the current supplementary items; based on low reporting, the note recommends removing some current supplementary items and including those shown in Annex I to preserve the ability to retrieve the extended directional principle.
  - Options: remove current supplementary items and replace with Annex I items, or remove all supplementary items given the small number of reporters.
- Additional options for discussion:
  - sectoral classification of DI in the currency composition classification (Section C. Additional Analytical Position Data of Appendix 9 of BPM6):
    - (a) request intercompany lending by institutional sector in the currency composition data;
    - (b) keep current classification in Section C.(a) and continue requesting DI debt instruments as a separate item without sectoral breakdown under "intercompany lending".
  - sectoral classification of DI in external debt statistics (EDS):
    - (a) classify intercompany lending by institutional sector under long-term instruments in EDS;
    - (b) keep current EDS classification which includes DI debt instruments as a separate "intercompany lending" item.
  - primary income account options:
    - (a) reduce standard and supplementary items to be consistent with IIP standard components;
    - (b) keep current standard components and most supplementary items of the primary income account as presented in Annex V.
  - CDIS: consequent changes to the CDIS are not contemplated in the note.

### Summary of discussion in the DITT
- Views were split within the DITT:
  - several members supported the recommendations to include sectoral breakdown in standard components;
  - some members strongly preferred to keep the current standard DI presentation.
- Points raised by members:
  - Some countries already prepare sectoral DI breakdowns for internal use or publish sectoral DI in national balance sheets; considered feasible by some because information is collected to identify financial companies whose debt instruments must be excluded from DI; feasibility and disclosure issues were noted by others.
  - UNCTAD and the OECD strongly preferred keeping the current standard and supplemental DI presentation to preserve the ability to derive quarterly directional DI figures.
  - Two DITT members supported retaining BPM6 standard DI presentation, noting DI is less likely to be subject to abrupt reversals and asset price changes that cause macroeconomic instability; they also noted DI by economic activity may be more relevant for analysis given the importance of the nonfinancial sector in DI. Countries are encouraged to publish industry classification by DI enterprise while sectoral breakdown is by resident entity (DI enterprise or direct investor).
- Other DITT comments:
  - A few members supported removing supplementary items on residency of ultimate controlling parent and noted the need to reflect changes in the External Debt Statistics Guide.
  - Preference expressed to keep intercompany lending in the currency composition table.
  - Some support for including maturity breakdown for debt securities classified in DI.
  - No agreement on whether the primary income breakdown should follow the sectoral breakdown or follow the proposal in Annex V.

### Annex V — Questions for Discussion and Proposed Structure
- Questions for Discussion:
  - Proposal: include sectoral breakdown of DI in the standard components of the balance of payments and the IIP, and maintain the standard components used to derive the directional values as memorandum items.
  - Query whether members agree with the proposed new memorandum and supplementary items (other than above) as presented in Annex I.
  - Request for members’ views/preferences on related options concerning:
    - sectoral classification of DI in the currency composition,
    - EDS,
    - options for related items in the primary account of the balance of payments.
- Participation and Comments:
  - Comments on the recommendations were received from Australia, Brazil, Japan, Russia, South Africa, the United States, ECB, IMF, and OECD.
  - Poland provided comments on the document but not on the recommendations.
- Suggested Standard Components, Memorandum, and Supplementary Items of DI (Annex I) — Structure highlights:
  - Direct investment: broken down into Equity and investment fund shares and Debt instruments by institutional sector (Central Bank; Deposit-taking corporations, except the central bank; General government; Other sectors; Other financial corporations; Nonfinancial corporations, households, and NPISHs).
  - Equity and investment fund shares: "Of which, Reinvestment of earnings (only BOP)" included.
  - Directional and counterparty memorandum items to preserve directional presentation and counterparty detail, including "Of Which Debt securities".

### Key statistics from Annex III (IIP Direct Investment — Equity, Total World) — Millions of US Dollars
- IIP Direct Investment Assets — Equity other than reinvestment of earnings:
  - 2016: 32,523,467
  - 2017: 38,133,566
  - 2018: 35,420,637
  - 2019: 35,024,398
- Direct investor in direct investment enterprises (Assets):
  - 2016: 18,912,709
  - 2017: 21,723,966
  - 2018: 20,483,045
  - 2019: 19,776,791
- Direct investment enterprises in direct investor (reverse investment) (Assets):
  - 2016: 19,920
  - 2017: 21,683
  - 2018: 22,015
  - 2019: 21,857
- Between fellow enterprises (Assets):
  - 2016: 25,069
  - 2017: 33,886
  - 2018: 29,907
  - 2019: 49,019
- IIP Direct Investment Liabilities — Equity other than reinvestment of earnings:
  - 2016: 28,726,744
  - 2017: 33,726,605
  - 2018: 35,208,284
  - 2019: 33,821,105
- Direct investor in direct investment enterprises (Liabilities):
  - 2016: 18,333,480
  - 2017: 21,237,591
  - 2018: 20,154,259
  - 2019: 18,277,780
- Direct investment enterprises in direct investor (reverse investment) (Liabilities):
  - 2016: 33,170
  - 2017: 37,717
  - 2018: 35,855
  - 2019: 16,363
- Between fellow enterprises (Liabilities):
  - 2016: 15,620
  - 2017: 18,422
  - 2018: 15,824
  - 2019: 18,385

### IIP Direct Investment — Equity Percentages of Components (Annex III)
- Direct Investment Assets. Equity — Percentage of the components:
  - Direct investor in direct investment enterprises: 2016: 99.8%; 2017: 99.7%; 2018: 99.7%; 2019: 99.6%
  - Direct investment enterprises in direct investor (reverse investment): 2016: 0.1%; 2017: 0.1%; 2018: 0.1%; 2019: 0.1%
  - Between fellow enterprises: 2016: 0.1%; 2017: 0.2%; 2018: 0.1%; 2019: 0.2%
- Direct Investment Liabilities. Equity — Percentage of the components:
  - Direct investor in direct investment enterprises: 2016: 99.7%; 2017: 99.7%; 2018: 99.7%; 2019: 99.8%
  - Direct investment enterprises in direct investor (reverse investment): 2016: 0.2%; 2017: 0.2%; 2018: 0.2%; 2019: 0.1%
  - Between fellow enterprises: 2016: 0.1%; 2017: 0.1%; 2018: 0.1%; 2019: 0.1%

### Reporting coverage and selected reporting frequencies (Annex IV) — Percentage of Countries Reporting the Current Supplementary Items of Direct Investment
- Coverage: BOP (out of 182); IIP (out of 156).
- Selected item reporting (Number of Countries with Non-Zero Data) — percentages by item and year (examples):
  - Equity and investment fund shares. Between fellow enterprises — if ultimate controlling parent is resident:
    - BOP: 2016: 2%; 2017: 1%; 2018: 2%; 2019: 1%
    - IIP: 2016: 3%; 2017: 4%; 2018: 4%; 2019: 3%
  - Debt instruments. Between fellow enterprises — if ultimate controlling parent is nonresident:
    - BOP: 2016: 8%; 2017: 8%; 2018: 9%; 2019: 10%
    - IIP: 2016: 10%; 2017: 10%; 2018: 10%; 2019: 9%
  - Of which: Debt securities (Assets):
    - BOP: 2016: 4%; 2017: 4%; 2018: 4%; 2019: 3%
    - IIP: 2016: 3%; 2017: 3%; 2018: 3%; 2019: 3%
  - Direct investor in direct investment enterprises (Net acquisition of financial assets/Assets):
    - BOP: 2016: 2%; 2017: 2%; 2018: 4%; 2019: 2%
    - IIP: 2016: 2%; 2017: 3%; 2018: 3%; 2019: 3%
  - Net incurrence of liabilities — selected items mirror asset-side reporting (examples):
    - Debt instruments. Between fellow enterprises — if ultimate controlling parent is resident:
      - BOP: 2016: 5%; 2017: 4%; 2018: 5%; 2019: 7%
      - IIP: 2016: 8%; 2017: 8%; 2018: 9%; 2019: 8%
    - Debt instruments. Between fellow enterprises — if ultimate controlling parent is nonresident:
      - BOP: 2016: 9%; 2017: 9%; 2018: 10%; 2019: 10%
      - IIP: 2016: 10%; 2017: 10%; 2018: 10%; 2019: 8%
    - Of which: Debt securities (Liabilities):
      - BOP: 2016: 4%; 2017: 3%; 2018: 4%; 2019: 4%
      - IIP: 2016: 4%; 2017: 4%; 2018: 5%; 2019: 5%

### Primary Income — Direct Investment Suggested Standard and Supplementary Components (Annex V)
- Investment income — Direct investment split into:
  - Income on equity and investment fund shares:
    - Dividends and withdrawals from income of quasi-corporations:
      - Direct investor in direct investment enterprises
      - Direct investment enterprises in direct investor (reverse investment)
      - Between fellow enterprises
        - if ultimate controlling parent is resident
        - if ultimate controlling parent is nonresident
        - if ultimate controlling parent is unknown
    - Reinvested earnings
      - Investment income attributable to policyholders in insurance, pension schemes, and standardized guarantees, and to investment fund shareholders
      - Of which: Investment income attributable to investment fund shareholders
  - Interest:
    - Direct investor in direct investment enterprises
    - Direct investment enterprises in direct investor (reverse investment)
    - Between fellow enterprises
      - if ultimate controlling parent is resident
      - if ultimate controlling parent is nonresident
      - if ultimate controlling parent is unknown
  - Memorandum: Interest before FISIM

*Prepared by Ms. Emma Angulo (IMF), Mr. Éric Simard (Statistics Canada), Mr. Bertrand Pluyaud (Banque de France), Mr. Astrit Sulstarova (UNCTAD), and Mr. Wilson Phiri (Bank of Zambia).*

### SECTION I: THE ISSUE

### SECTION I: THE ISSUE

### Background: rationale for sectoral breakdown of Direct Investment (DI)
- DI is the only functional category in the balance of payments and the international investment position (IIP) standard components within external sector statistics (ESS) that is not presented by institutional sector; BPM6 recognizes sectoral breakdown as important and states that direct investment by institutional sector should be shown as a supplementary item where relevant (BPM6, paragraph 2.32 and table 7.2).
- Proposals under consideration:
  - include the sectoral breakdown of direct investment in the standard components of the balance of payments and the IIP rather than as supplementary items;
  - include the current assets and liabilities components as memorandum items to the standard components;
  - review the current classification of direct investment to avoid numerous components under a single functional category.
- Benefits of sectoral classification:
  - allows comparison and complementary use of ESS data with SNA, MFS, and GFS datasets;
  - facilitates analysis of net foreign lending or borrowing of each domestic sector and detection of external sustainability and vulnerability issues by sector;
  - supports the Handbook on Securities Statistics dataset and enables integrated economic accounts.
- Support for the Balance Sheet Approach (BSA):
  - sectoral DI breakdown provides details on external positions for domestic sectors, aiding BSA analysis of balance sheet weaknesses and macrofinancial vulnerabilities (BPM6, paragraphs 14.57 to 14.66);
  - addresses a key data gap for building the BSA matrix by providing sectoral classification in the IIP, enabling aggregation of international accounts to build the balance sheet matrix (paragraph 14.59 of BPM6) and comparison with SNA, MFS, and GFS balance sheets (paragraphs 2.32 and 2.34 of BPM6).

### Issues for discussion: scope, classification, and presentation
- Whether the sectoral breakdown of DI should be part of the standard components of the balance of payments and the IIP or remain supplementary/memorandum items:
  - All other ESS functional categories are classified by instrument, sector, and maturity in the standard components except DI; the note recommends classifying DI by resident institutional sector as for other functional categories to close a data gap and facilitate comparison with other datasets.
- Proposed institutional sectors (to match BPM6 or BPM7 as updated):
  - central bank,
  - deposit-taking corporations, except the central bank,
  - general government,
  - other financial corporations,
  - nonfinancial corporations, households, and NPISHs.
  - Annex I of the note shows the proposed classification.
- Clarification on direct investors vs direct investment enterprises (BPM6 paragraphs cited):
  - a direct investor could be individuals/households; enterprises; investment funds; governments or international organizations; nonprofit institutions in an enterprise that operates for profit; estates/trusts; or combinations thereof (BPM6 6.20);
  - a direct investment enterprise is always a corporation (statistical term includes branches, notional resident units, trusts, quasi‑corporations, and investment funds); households or governments can be direct investors but cannot be direct investment enterprises (BPM6 6.24);
  - direct investment of the central bank and other deposit‑taking corporations is needed for aggregates consistent with monetary and financial statistics (BPM6 2.32).
- Instrument and maturity classification of DI:
  - DI classification provides two main financial instrument categories: equity and investment fund shares, and debt instruments; the "debt instruments" category is not disaggregated by specific instruments and includes debt securities; currency and deposits; loans; insurance, pension, and standardized guarantee schemes; trade credits and advances; and other accounts between related companies.
  - Only debt securities (the only negotiable debt instrument) are requested as a supplementary item.
  - The maturity breakdown of DI is not requested in the standard components of BPM6.
  - By convention, debt instruments between related companies are classified as long-term instruments.
  - No change is proposed to the instrument and maturity classification of DI.
  - Note: "A new ECB guideline to be implemented in March 2021, requires the euro area countries to report separated debt instruments."
- Review of standard, memorandum, and supplementary items under DI given sectoral classification:
  - Standard components contribute to totals and balancing items; memorandum items are part of the standard presentation but not used for totals; supplementary items are outside the standard presentation and compiled depending on circumstances (BPM6 paragraph 1.15).
  - Because standard components feed aggregated totals, only one primary breakdown under DI standard components is feasible; the note proposes the sectoral breakdown be the standard components.
  - The current standard breakdown (used to derive quarterly directional values) would be included as memorandum items to preserve the ability to derive directional figures.
  - The current supplementary breakdown relating to UCP residency between fellows used to derive the quarterly directional principle would remain supplementary.
- Specifics about current classification and memorandum/supplementary treatment:
  - The BPM6 DI classification was introduced to move from BPM5 directional principle classification to BPM6 asset/liability presentation while keeping conversion to directional presentation possible.
  - The directional presentation is more useful for examining the natures and motivations for DI; guidelines recommend publishing detailed DI statistics by country and industry according to the directional presentation (e.g., CDIS collects DI by partner economy annually).
  - Values reported under reverse equity investment and equity between fellows represent less than 0.3 percent of the reported total for the last four years for both assets and liabilities (Annex III).
  - Reinvestment of earnings could be separately identified in the financial account as an "of which" memorandum item; the financial account currently records the same standard components as the IIP except for reinvestment of earnings, which is reported as a separate item in the financial account and aggregated to the total DI equity in the IIP.
  - Recommendation to break down reinvestment of earnings by institutional sector and to aggregate it to equity and investment fund shares in the financial account standard components while also separately identifying it as a memorandum "of which" item; reinvested earnings would remain a separate standard component in the primary income account.
- Memorandum items proposals:
  - DI memorandum items could include current standard components used to derive directional values to enable calculation of directional figures quarterly; include reinvestment of earnings of the financial account as a memorandum item.
- Supplementary items proposals:
  - Annex IV shows 10 percent or fewer countries report the current supplementary items; based on low reporting, the note recommends removing some current supplementary items and including those shown in Annex I to preserve the ability to retrieve the extended directional principle.
  - Options include removing current supplementary items and replacing with Annex I items, or removing all supplementary items given the small number of reporters.
- Additional options for discussion:
  - Include sectoral classification of DI in the currency composition classification requested in Section C. Additional Analytical Position Data of Appendix 9 of BPM6:
    - (a) request intercompany lending by institutional sector in the currency composition data;
    - (b) keep current classification in Section C.(a) and continue requesting DI debt instruments as a separate item without sectoral breakdown under "intercompany lending".
  - Include sectoral classification of DI in external debt statistics (EDS):
    - (a) classify intercompany lending by institutional sector under long-term instruments in EDS;
    - (b) keep current EDS classification which includes DI debt instruments as a separate "intercompany lending" item.
  - In the primary income account:
    - (a) reduce standard and supplementary items to be consistent with IIP standard components;
    - (b) keep current standard components and most supplementary items of the primary income account as presented in Annex V.
  - CDIS: consequent changes to the CDIS are not contemplated in the note.

### Summary of discussion in the DITT
- Views were split within the DITT:
  - several members supported the recommendations to include sectoral breakdown in standard components;
  - some members strongly preferred to keep the current standard DI presentation.
- Points raised by members:
  - Some countries already prepare sectoral DI breakdowns for internal use or publish sectoral DI in national balance sheets; considered feasible by some because information is collected to identify financial companies whose debt instruments must be excluded from DI; feasibility and disclosure issues were noted by others.
  - UNCTAD and the OECD strongly preferred keeping the current standard and supplemental DI presentation to preserve the ability to derive quarterly directional DI figures, which they view as the most meaningful for understanding and analyzing DI.
  - Two DITT members supported retaining BPM6 standard DI presentation, noting DI is less likely to be subject to abrupt reversals and asset price changes that cause macroeconomic instability; they also noted DI by economic activity may be more relevant for analysis given the importance of the nonfinancial sector in DI. Countries are encouraged to publish industry classification by DI enterprise while sectoral breakdown is by resident entity (DI enterprise or direct investor).
- Other DITT comments:
  - A few members supported removing supplementary items on residency of ultimate controlling parent and noted the need to reflect changes in the External Debt Statistics Guide.
  - Preference expressed to keep intercompany lending in the currency composition table.
  - Some support for including maturity breakdown for debt securities classified in DI.
  - No agreement on whether the primary income breakdown should follow the sectoral breakdown or follow the proposal in Annex V.

*Prepared by Ms. Emma Angulo (IMF), Mr. Éric Simard (Statistics Canada), Mr. Bertrand Pluyaud (Banque de France), Mr. Astrit Sulstarova (UNCTAD), and Mr. Wilson Phiri (Bank of Zambia).*

### Annex V.

### d-7-sectoral-breakdown-of-direct-investment - Annex V

### Questions for Discussion
- Proposal: include sectoral breakdown of DI in the standard components of the balance of payments and the IIP, and maintain the standard components used to derive the directional values as memorandum items.
- Query whether members agree with the proposed new memorandum and supplementary items (other than above) as presented in Annex I.
- Request for members’ views/preferences on related options concerning:
  - sectoral classification of DI in the currency composition,
  - EDS,
  - options for related items in the primary account of the balance of payments.

### Participation and Comments
- Comments on the recommendations were received from Australia, Brazil, Japan, Russia, South Africa, the United States, ECB, IMF, and OECD.
- Poland provided comments on the document but not on the recommendations.

### Suggested Standard Components, Memorandum, and Supplementary Items of DI (Annex I) — Structure
- Accounts indicated: BOP, IIP, NAFA, NIL; Assets and Liabilities columns implied.
- Direct investment: broken down into
  - Equity and investment fund shares
    - Central Bank (n.a., n.a.)
    - Deposit-taking corporations, except the central bank
    - General government (n.a., n.a.)
    - Other sectors
    - Other financial corporations
    - Nonfinancial corporations, households, and NPISHs
    - Of which, Reinvestment of earnings (only BOP)
  - Debt instruments
    - Central Bank
    - Deposit-taking corporations, except the central bank
    - General government
    - Other sectors
    - Other financial corporations
    - Nonfinancial corporations, households, and NPISHs
- Directional and counterparty memorandum items:
  - Direct investor in direct investment enterprises
  - Direct investment enterprises in direct investor (reverse inv.)
  - Between fellow enterprises
    - if ultimate controlling parent is resident
    - if ultimate controlling parent is nonresident
    - if ultimate controlling parent is unknown
  - Of Which Debt securities

### Current Standard Components and Supplementary Items of Direct Investment (Annex II) — Structure
- Direct investment split into:
  - Equity and investment fund shares
    - Equity other than reinvestment of earnings
      - Direct investor in direct investment enterprises
      - Direct investment enterprises in direct investor (reverse investment)
      - Between fellow enterprises
        - if ultimate controlling parent is resident
        - if ultimate controlling parent is nonresident
        - if ultimate controlling parent is unknown
    - Reinvestment of earnings (only BOP)
    - Of Which, Investment fund shares/units
    - Money market fund shares/units
  - Debt instruments
    - Direct investor in direct investment enterprises
    - Direct investment enterprises in direct investor (reverse investment)
    - Between fellow enterprises
      - if ultimate controlling parent is resident
      - if ultimate controlling parent is nonresident
      - if ultimate controlling parent is unknown
    - Of Which, Debt securities
      - Direct investor in direct investment enterprises
      - Direct investment enterprises in direct investor (reverse investment)
      - Between fellow enterprises
        - if ultimate controlling parent is resident
        - if ultimate controlling parent is nonresident
        - if ultimate controlling parent is unknown

### IIP Direct Investment — Equity, Total World (Annex III) (Millions of US Dollars)
- IIP Direct Investment Assets — Equity other than reinvestment of earnings:
  - 2016: 32,523,467
  - 2017: 38,133,566
  - 2018: 35,420,637
  - 2019: 35,024,398
- Direct investor in direct investment enterprises (Assets):
  - 2016: 18,912,709
  - 2017: 21,723,966
  - 2018: 20,483,045
  - 2019: 19,776,791
- Direct investment enterprises in direct investor (reverse investment) (Assets):
  - 2016: 19,920
  - 2017: 21,683
  - 2018: 22,015
  - 2019: 21,857
- Between fellow enterprises (Assets):
  - 2016: 25,069
  - 2017: 33,886
  - 2018: 29,907
  - 2019: 49,019
- IIP Direct Investment Liabilities — Equity other than reinvestment of earnings:
  - 2016: 28,726,744
  - 2017: 33,726,605
  - 2018: 35,208,284
  - 2019: 33,821,105
- Direct investor in direct investment enterprises (Liabilities):
  - 2016: 18,333,480
  - 2017: 21,237,591
  - 2018: 20,154,259
  - 2019: 18,277,780
- Direct investment enterprises in direct investor (reverse investment) (Liabilities):
  - 2016: 33,170
  - 2017: 37,717
  - 2018: 35,855
  - 2019: 16,363
- Between fellow enterprises (Liabilities):
  - 2016: 15,620
  - 2017: 18,422
  - 2018: 15,824
  - 2019: 18,385

### IIP Direct Investment — Equity Percentages of Components (Annex III)
- Direct Investment Assets. Equity — Percentage of the components:
  - Direct investor in direct investment enterprises: 2016: 99.8%; 2017: 99.7%; 2018: 99.7%; 2019: 99.6%
  - Direct investment enterprises in direct investor (reverse investment): 2016: 0.1%; 2017: 0.1%; 2018: 0.1%; 2019: 0.1%
  - Between fellow enterprises: 2016: 0.1%; 2017: 0.2%; 2018: 0.1%; 2019: 0.2%
- Direct Investment Liabilities. Equity — Percentage of the components:
  - Direct investor in direct investment enterprises: 2016: 99.7%; 2017: 99.7%; 2018: 99.7%; 2019: 99.8%
  - Direct investment enterprises in direct investor (reverse investment): 2016: 0.2%; 2017: 0.2%; 2018: 0.2%; 2019: 0.1%
  - Between fellow enterprises: 2016: 0.1%; 2017: 0.1%; 2018: 0.1%; 2019: 0.1%

### Percentage of Countries Reporting the Current Supplementary Items of Direct Investment (Annex IV)
- Coverage: BOP (out of 182); IIP (out of 156).
- Selected reporting frequencies (Number of Countries with Non-Zero Data) — percentages by item and year:

- Equity and investment fund shares. Between fellow enterprises — if ultimate controlling parent is resident:
  - BOP: 2016: 2%; 2017: 1%; 2018: 2%; 2019: 1%
  - IIP: 2016: 3%; 2017: 4%; 2018: 4%; 2019: 3%
- if ultimate controlling parent is nonresident:
  - BOP: 2016: 3%; 2017: 2%; 2018: 1%; 2019: 1%
  - IIP: 2016: 4%; 2017: 4%; 2018: 4%; 2019: 3%
- if ultimate controlling parent is unknown:
  - BOP: 2016: 1%; 2017: 1%; 2018: 1%; 2019: 1%
  - IIP: 2016: 2%; 2017: 3%; 2018: 3%; 2019: 1%
- Of which: Investment fund shares or units:
  - BOP: 2016: 2%; 2017: 2%; 2018: 2%; 2019: 1%
  - IIP: 2016: 1%; 2017: 0%; 2018: 1%; 2019: 1%
- Debt instruments. Between fellow enterprises — if ultimate controlling parent is resident:
  - BOP: 2016: 6%; 2017: 5%; 2018: 6%; 2019: 7%
  - IIP: 2016: 8%; 2017: 8%; 2018: 8%; 2019: 8%
- Debt instruments. Between fellow enterprises — if ultimate controlling parent is nonresident:
  - BOP: 2016: 8%; 2017: 8%; 2018: 9%; 2019: 10%
  - IIP: 2016: 10%; 2017: 10%; 2018: 10%; 2019: 9%
- Debt instruments. Between fellow enterprises — if ultimate controlling parent is unknown:
  - BOP: 2016: 5%; 2017: 5%; 2018: 5%; 2019: 4%
  - IIP: 2016: 6%; 2017: 6%; 2018: 6%; 2019: 4%
- Of which: Debt securities:
  - BOP: 2016: 4%; 2017: 4%; 2018: 4%; 2019: 3%
  - IIP: 2016: 3%; 2017: 3%; 2018: 3%; 2019: 3%
- Direct investor in direct investment enterprises (Net acquisition of financial assets/Assets):
  - BOP: 2016: 2%; 2017: 2%; 2018: 4%; 2019: 2%
  - IIP: 2016: 2%; 2017: 3%; 2018: 3%; 2019: 3%
- Direct investment enterprises in direct investor (reverse investment) (Net acquisition...):
  - BOP: 2016: 4%; 2017: 4%; 2018: 3%; 2019: 2%
  - IIP: 2016: 2%; 2017: 1%; 2018: 2%; 2019: 2%
- Between fellow enterprises (Net acquisition...):
  - BOP: 2016: 2%; 2017: 2%; 2018: 3%; 2019: 2%
  - IIP: 2016: 2%; 2017: 3%; 2018: 3%; 2019: 3%

- Net incurrence of liabilities/Liabilities — selected items mirror asset-side reporting:
  - Equity and investment fund shares. Between fellow enterprises — if ultimate controlling parent is resident:
    - BOP: 2016: 2%; 2017: 1%; 2018: 1%; 2019: 2%
    - IIP: 2016: 1%; 2017: 3%; 2018: 3%; 2019: 2%
  - if ultimate controlling parent is nonresident:
    - BOP: 2016: 1%; 2017: 2%; 2018: 2%; 2019: 2%
    - IIP: 2016: 4%; 2017: 4%; 2018: 3%; 2019: 4%
  - if ultimate controlling parent is unknown:
    - BOP: 2016: 2%; 2017: 2%; 2018: 2%; 2019: 2%
    - IIP: 2016: 3%; 2017: 2%; 2018: 3%; 2019: 2%
  - Of which: Investment fund shares or units:
    - BOP: 2016: 2%; 2017: 2%; 2018: 3%; 2019: 1%
    - IIP: 2016: 3%; 2017: 3%; 2018: 3%; 2019: 2%
  - Debt instruments. Between fellow enterprises — if ultimate controlling parent is resident:
    - BOP: 2016: 5%; 2017: 4%; 2018: 5%; 2019: 7%
    - IIP: 2016: 8%; 2017: 8%; 2018: 9%; 2019: 8%
  - Debt instruments. Between fellow enterprises — if ultimate controlling parent is nonresident:
    - BOP: 2016: 9%; 2017: 9%; 2018: 10%; 2019: 10%
    - IIP: 2016: 10%; 2017: 10%; 2018: 10%; 2019: 8%
  - Of which: Debt securities (Liabilities):
    - BOP: 2016: 4%; 2017: 3%; 2018: 4%; 2019: 4%
    - IIP: 2016: 4%; 2017: 4%; 2018: 5%; 2019: 5%
  - Direct investor in direct investment enterprises (Liabilities):
    - BOP: 2016: 4%; 2017: 3%; 2018: 4%; 2019: 4%
    - IIP: 2016: 3%; 2017: 3%; 2018: 4%; 2019: 4%

### Primary Income — Direct Investment Suggested Standard and Supplementary Components (Annex V)
- Investment income — Direct investment split into:
  - Income on equity and investment fund shares:
    - Dividends and withdrawals from income of quasi-corporations:
      - Direct investor in direct investment enterprises
      - Direct investment enterprises in direct investor (reverse investment)
      - Between fellow enterprises
        - if ultimate controlling parent is resident
        - if ultimate controlling parent is nonresident
        - if ultimate controlling parent is unknown
    - Reinvested earnings
      - Investment income attributable to policyholders in insurance, pension schemes, and standardized guarantees, and to investment fund shareholders
      - Of which: Investment income attributable to investment fund shareholders
  - Interest:
    - Direct investor in direct investment enterprises
    - Direct investment enterprises in direct investor (reverse investment)
    - Between fellow enterprises
      - if ultimate controlling parent is resident
      - if ultimate controlling parent is nonresident
      - if ultimate controlling parent is unknown
  - Memorandum: Interest before FISIM

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/ditt/d-7-sectoral-breakdown-of-direct-investment.pdf_