Survey of Current Business

Survey of Current Business
Chronicling 100 Years of the U.S. Economy

October 2022
Volume 102, Number 10

U.S. International Investment Position

Second Quarter 2022

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The U.S. net international investment position—the difference between U.S. residents’ foreign financial assets and liabilities—was −$16.31 trillion at the end of the second quarter of 2022 (chart 1). Assets totaled $30.98 trillion, and liabilities were $47.29 trillion. At the end of the first quarter, the net investment position was −$17.75 trillion. The net investment positions and components of assets and liabilities are presented in table A.

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 $1.44 trillion change in the net investment position from the first quarter to the second quarter came from net financial transactions of −$139.1 billion and net other changes in position, such as price and exchange-rate changes, of $1.58 trillion. Net other changes mostly reflected U.S. stock price decreases that exceeded foreign stock price decreases, which lowered the value of U.S. liabilities more than U.S. assets (table A).

 

U.S. assets decreased by $3.06 trillion to a total of $30.98 trillion at the end of the second quarter, reflecting decreases in portfolio investment and direct investment assets that were driven mainly by foreign stock price decreases and by depreciation of major currencies against the U.S. dollar that lowered the value of these assets in dollar terms (chart 2). Portfolio investment assets decreased by $1.72 trillion to $13.77 trillion, and direct investment assets decreased by $1.39 trillion to $9.04 trillion.

Price changes and exchange-rate changes, components of other changes in position, drove the overall decrease in U.S. assets (table A).

U.S. liabilities decreased by $4.50 trillion to a total of $47.29 trillion at the end of the second quarter, reflecting decreases in portfolio investment and direct investment liabilities that were driven mainly by U.S. stock price decreases (chart 3). Portfolio investment liabilities decreased by $2.53 trillion to $24.68 trillion, and direct investment liabilities decreased by $2.07 trillion to $12.08 trillion.

Price changes, a component of other changes in position, drove the overall decrease in U.S. liabilities (table A).

The U.S. international investment position statistics for the first quarter of 2022 have been updated to incorporate newly available and revised source data (table B).