Denmark's IIP surges fivefold to record kr. 3,220 billion
Denmark's international investment position (IIP) has increased fivefold since mid-2024, reaching a record kr. 3,220 billion by the end of 2025. This surge primarily reflects valuation losses on foreign holdings of Danish shares and substantial balance of payments surpluses.
Novo Nordisk shares fuel IIP increase
The most significant valuation effect on the IIP stems from price declines in foreign investors' financial assets in Denmark, particularly a fall in the value of foreign investments in Novo Nordisk shares.
Since the end of the first half of 2024, this fall has reduced the value of foreign investors' holdings of Novo Nordisk shares by kr.
1,827 billion, directly increasing the IIP by a corresponding amount.
Other valuation effects include positive contributions from price increases in Danish investments in foreign shares.
Conversely, the depreciation of the US dollar led to exchange-rate losses on Danish investments in dollar-denominated foreign assets, which reduced the IIP.
Persistent surpluses lift IIP
Denmark recorded a substantial surplus on the balance of payments amounting to kr.
565 billion since the second half of 2024, significantly increasing the Danish IIP.
A balance of payments surplus indicates that Denmark either increases its financial assets abroad or reduces its liabilities to the rest of the world.
Over time, price and exchange-rate changes tend to level out, making balance of payments surpluses the primary driver of long-term IIP developments.
This sustained surplus underscores Denmark's strong external financial position.