U.S. International Investment Position

Second Quarter 2022

By Erin Whitaker  |  Volume 102, Number 10  |  October 19, 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).

Chart 1. U.S. Net International Investment Position, line chart

[Click chart to expand]

 

Table A. Quarterly Change in the U.S. Net International Investment Position
[Billions of dollars, not seasonally adjusted]
Type of investment End of quarter position, 2022:Q1 Change in position in 2022:Q2 End of quarter position, 2022:Q2
Total Attributable to:
Financial transactions Other changes in position1
U.S. net international investment position −17,745.6 1,436.3 −139.1 1,575.4 −16,309.3
Net position excluding financial derivatives −17,808.0 1,427.3 −93.2 1,520.5 −16,380.7
Financial derivatives other than reserves, net2 62.4 9.0 −45.9 54.9 71.4
U.S. assets 34,038.6 −3,061.7 (2) (2) 30,976.9
Assets excluding financial derivatives 31,780.1 −3,208.9 409.1 −3,618.0 28,571.2
Financial derivatives other than reserves 2,258.5 147.1 (2) (2) 2,405.7
By functional category:          
Direct investment at market value 10,424.7 −1,387.0 122.0 −1,509.0 9,037.7
Equity 9,187.2 −1,405.2 99.9 −1,505.1 7,782.1
Debt instruments 1,237.5 18.1 22.1 −4.0 1,255.6
Portfolio investment 15,489.8 −1,718.1 279.8 −1,997.9 13,771.7
Equity and investment fund shares 11,420.2 −1,484.6 239.5 −1,724.1 9,935.5
Debt securities 4,069.7 −233.5 40.3 −273.8 3,836.2
Short term 496.1 −35.0 −29.3 −5.7 461.1
Long term 3,573.5 −198.4 69.6 −268.1 3,375.1
Financial derivatives other than reserves 2,258.5 147.1 (2) (2) 2,405.7
Over-the-counter contracts 2,156.6 145.1 (2) (2) 2,301.7
Single-currency interest rate contracts 1,455.8 122.8 (2) (2) 1,578.6
Foreign exchange contracts 394.1 63.5 (2) (2) 457.5
Other contracts 306.8 −41.2 (2) (2) 265.6
Exchange-traded contracts 101.9 2.1 (2) (2) 103.9
Other investment 5,120.5 −61.4 6.1 −67.5 5,059.2
Other equity 71.1 0.0 0.0 0.0 71.1
Currency and deposits 2,147.0 −56.5 −13.5 −43.0 2,090.5
Loans 2,861.7 −5.0 19.3 −24.3 2,856.7
Insurance technical reserves n.a. n.a. n.a. n.a. n.a.
Trade credit and advances 40.8 0.1 0.3 −0.2 40.9
Reserve assets 745.0 −42.4 1.2 −43.5 702.6
Monetary gold 507.9 −32.7 0.0 −32.7 475.1
Special drawing rights 163.1 −4.9 1.5 −6.5 158.2
Reserve position in the International Monetary Fund 34.8 −1.7 −0.4 −1.4 33.1
Other reserve assets 39.2 −3.0 (*) −3.0 36.2
U.S. liabilities 51,784.2 −4,498.0 (2) (2) 47,286.2
Liabilities excluding financial derivatives 49,588.0 −4,636.1 502.3 −5,138.5 44,951.9
Financial derivatives other than reserves 2,196.1 138.1 (2) (2) 2,334.2
By functional category:          
Direct investment at market value 14,148.5 −2,066.7 69.5 −2,136.2 12,081.8
Equity 12,405.6 −2,063.7 78.9 −2,142.6 10,341.9
Debt instruments 1,742.9 −3.0 −9.4 6.4 1,739.9
Portfolio investment 27,215.6 −2,533.3 433.5 −2,966.8 24,682.3
Equity and investment fund shares 13,936.6 −2,068.2 265.5 −2,333.6 11,868.5
Debt securities 13,279.0 −465.1 168.0 −633.1 12,813.8
Short term 1,267.5 −106.0 −105.2 −0.8 1,161.5
Long term 12,011.5 −359.1 273.2 −632.3 11,652.3
Financial derivatives other than reserves 2,196.1 138.1 (2) (2) 2,334.2
Over-the-counter contracts 2,092.8 129.3 (2) (2) 2,222.0
Single-currency interest rate contracts 1,415.6 112.8 (2) (2) 1,528.4
Foreign exchange contracts 380.2 52.8 (2) (2) 433.0
Other contracts 297.0 −36.4 (2) (2) 260.6
Exchange-traded contracts 103.3 8.9 (2) (2) 112.2
Other investment 8,224.0 −36.2 −0.7 −35.5 8,187.8
Other equity n.a. n.a. n.a. n.a. n.a.
Currency and deposits 4,262.1 12.7 11.9 0.8 4,274.7
Loans 3,565.5 −49.4 −19.5 −30.0 3,516.1
Insurance technical reserves n.a. n.a. n.a. n.a. n.a.
Trade credit and advances 237.6 6.9 6.9 (*) 244.5
Special drawing rights allocations 158.8 −6.3 0.0 −6.3 152.5
n.a.
Not available
(*)
Value between zero and +/− $50 million
0
Transactions or other changes are possible but are zero for a given period.
  1. Disaggregation of other changes in position into price changes, exchange-rate changes, and other changes in volume and valuation is presented for annual statistics released in March and revised in June each year.
  2. Financial transactions and other changes in financial derivatives positions are available on a net basis; they are not separately available for U.S. assets and U.S. liabilities.

Note. The statistics on positions are presented in table 1.2 of the International Investment Position Accounts on the Bureau of Economic Analysis (BEA) website. The statistics on financial transactions are not seasonally adjusted and are presented in table 1.2 of the International Transactions Accounts on BEA's website.

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).

Chart 2. U.S. Seets by Category, line chart

[Click chart to expand]

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).

Chart 3. U.S. Liabilities by CAtegory, line chart

[Click chart to expand]

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).

Table B. Updates to First-Quarter 2022 International Investment Position Aggregates
[Billions of dollars, not seasonally adjusted]
  Preliminary estimate Revised estimate
U.S. net international investment position −17,748.5 −17,745.6
U.S. assets 33,999.2 34,038.6
Direct investment at market value 10,412.7 10,424.7
Portfolio investment 15,491.9 15,489.8
Financial derivatives other than reserves 2,258.5 2,258.5
Other investment 5,091.0 5,120.5
Reserve assets 745.0 745.0
U.S. liabilities 51,747.6 51,784.2
Direct investment at market value 14,130.4 14,148.5
Portfolio investment 27,211.0 27,215.6
Financial derivatives other than reserves 2,196.1 2,196.1
Other investment 8,210.1 8,224.0