Wednesday, October 14, 2020
The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$13.05 trillion at the end of the second quarter of 2020, according to statistics released by the U.S. Bureau of Economic Analysis (BEA). Assets totaled $28.87 trillion and liabilities were $41.92 trillion.
At the end of the first quarter, the net investment position was –$12.16 trillion (Table 1).
The –$882.6 billion change in the net investment position from the first quarter to the second quarter came from net financial transactions of –$77.5 billion and net other changes in position, such as price and exchange rate changes, of –$805.1 billion (Table A).
Table A. Quarterly Change in the U.S. Net International Investment Position
Billions of dollars, not seasonally adjusted
|Change in position in 2020 Q2||Position,
in position 1
|U.S. net international investment position||-12,163.3||-882.6||-77.5||-805.1||-13,045.9|
|Net position excluding financial derivatives||-12,197.0||-871.1||-137.8||-733.3||-13,068.1|
|Financial derivatives other than reserves, net||33.7||-11.5||60.3||-71.7||22.2|
|Assets excluding financial derivatives||23,925.2||2,196.8||-141.1||2,337.9||26,122.0|
|Financial derivatives other than reserves||2,996.1||-245.3||(2)||(2)||2,750.8|
|Liabilities excluding financial derivatives||36,122.1||3,067.9||-3.3||3,071.3||39,190.1|
|Financial derivatives other than reserves||2,962.4||-233.8||(2)||(2)||2,728.6|
|1. Disaggregation of other changes in position into price changes, exchange rate changes, and other changes in volume and valuation is only presented for annual statistics released in June each year.
2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for U.S. assets and U.S. liabilities.
U.S. assets increased by $1.95 trillion, to a total of $28.87 trillion, at the end of the second quarter, mostly reflecting increases in portfolio investment and direct investment assets that were partly offset by decreases in financial derivatives and other investment assets. Portfolio investment assets increased by $1.39 trillion, to $12.39 trillion, and direct investment assets increased by $938.8 billion, to $7.94 trillion, driven mainly by increases in foreign stock prices that raised the value of these assets. Global stock prices recovered from the decreases that occurred in the first quarter at the onset of the COVID-19 pandemic.
U.S. liabilities increased by $2.83 trillion, to a total of $41.92 trillion, at the end of the second quarter, mostly reflecting increases in portfolio investment and direct investment liabilities that were partly offset by decreases in other investment liabilities and financial derivatives. Portfolio investment liabilities increased by $2.10 trillion, to $22.03 trillion, and direct investment liabilities increased by $1.34 trillion, to $10.10 trillion, driven mainly by increases in U.S. stock prices that raised the value of these liabilities.
Updates to First Quarter 2020 International Investment Position AggregatesTrillions of dollars, not seasonally adjusted
|Preliminary estimate||Revised estimate|
|U.S. net international investment position||-12.06||−12.16|
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Next release: December 29, 2020 at 8:30 A.M. EST
U.S. International Investment Position, Third Quarter 2020