Chronicling 100 Years of the U.S. Economy

October 2021
Volume 101, Number 10

U.S. International Investment Position

Second Quarter 2021

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The U.S. net international investment position—the difference between U.S. residents' foreign financial assets and liabilities—was −$15.42 trillion at the end of the second quarter of 2021 (chart 1). Assets totaled $34.20 trillion, and liabilities were $49.62 trillion. At the end of the first quarter, the net investment position was −$14.30 trillion.

The U.S. international investment position is a statistical balance sheet that presents the dollar value of U.S. external financial assets and liabilities. A negative net investment position represents a U.S. net liability to the rest of the world.

The −$1.12 trillion change in the net investment position from the first quarter to the second quarter came from net financial transactions of −$277.6 billion and net other changes in position, such as price and exchange rate changes, of −$841.4 billion that mostly reflected U.S. stock price increases that exceeded foreign stock price increases (table A).

 

 

U.S. assets increased by $1.36 trillion, to a total of $34.20 trillion at the end of the second quarter, mostly reflecting increases in portfolio investment and direct investment assets (chart 2). Portfolio investment assets increased by $755.8 billion, to $15.90 trillion, and direct investment assets increased by $656.4 billion, to $10.55 trillion, driven mainly by increases in foreign stock prices that raised the value of these assets.

Both financial transactions and other changes in position contributed to the overall increase in U.S. assets (table A).

U.S. liabilities increased by $2.48 trillion, to a total of $49.62 trillion at the end of the second quarter, mostly reflecting increases in portfolio investment and direct investment liabilities (chart 3). Portfolio investment liabilities increased by $1.41 trillion, to $26.59 trillion, and direct investment liabilities increased by $927.2 billion, to $13.49 trillion, driven mainly by increases in U.S. stock prices that raised the value of these liabilities.

Both financial transactions and other changes in position contributed to the overall increase in U.S. liabilities (table A).

The U.S. international investment position statistics for the first quarter of 2021 have been updated to incorporate newly available and revised source data (table B).