U.S. International Transactions

Fourth Quarter and Year 2018

By Erin (Yiran) Xin  |  Volume 99, Number 4  |  April 16, 2019

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The U.S. current-account deficit—a net measure of transactions between the United States and the rest of the world in goods, services, primary income, and secondary income—increased to $134.4 billion (preliminary) in the fourth quarter of 2018 from $126.6 billion (revised) in the third quarter (chart 1 and table A). The deficit was 2.6 percent of current-dollar gross domestic product (GDP) in the fourth quarter, up from 2.5 percent in the third quarter.

The $7.8 billion increase in the current-account deficit mainly reflected increases in the deficits on goods and on secondary income and a decrease in the surplus on services.

Chart 1. U.S. Current-Account Balance and Its Components, Line Chart.

[Click chart to expand]

Net U.S. borrowing measured by financial-account transactions was $168.3 billion in the fourth quarter, an increase from net borrowing of $36.8 billion in the third quarter.

The annual current-account deficit increased to $488.5 billion (preliminary) in 2018 from $449.1 billion in 2017. The deficit was 2.4 percent of current-dollar GDP in 2018, up from 2.3 percent in 2017.

Net U.S. borrowing measured by financial-account transactions was $519.6 billion in 2018, an increase from net borrowing of $331.9 billion in 2017.

Table A. U.S. International Transactions
[Millions of dollars, seasonally adjusted]
  2018 Change 2018:III to 2018:IV
Ir IIr IIIr IVp
Current account          
Exports of goods and services and income receipts (credits) 903,027 934,221 930,192 934,254 4,062
Exports of goods and services 615,222 633,033 627,086 625,415 −1,671
Goods 409,210 427,198 419,830 416,094 −3,736
Services 206,012 205,835 207,257 209,321 2,064
Primary income receipts 255,972 266,192 266,297 271,901 5,604
Secondary income (current transfer) receipts 31,833 34,996 36,809 36,938 129
Imports of goods and services and income payments (debits) 1,026,950 1,037,789 1,056,796 1,068,631 11,835
Imports of goods and services 771,478 769,908 789,097 792,379 3,282
Goods 632,478 632,723 649,303 649,147 −156
Services 139,000 137,185 139,794 143,231 3,437
Primary income payments 194,783 203,860 205,958 211,465 5,507
Secondary income (current transfer) payments 60,689 64,021 61,740 64,787 3,047
Capital account          
Capital transfer receipts and other credits 0 0 562 8,856 8,294
Capital transfer payments and other debits 2 5 3 n.a. n.a.
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 251,218 −199,905 78,338 171,967 93,629
Direct investment assets −139,234 −68,023 60,396 96,229 35,833
Portfolio investment assets 304,094 −14,272 70,072 −149,565 −219,637
Other investment assets 86,365 −120,679 −51,953 223,199 275,152
Reserve assets −7 3,068 −177 2,105 2,282
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 440,981 −63,211 102,926 320,216 217,290
Direct investment liabilities 57,850 16,551 104,506 88,175 −16,331
Portfolio investment liabilities 301,503 20,596 10,760 −12,853 −23,613
Other investment liabilities 81,628 −100,358 −12,340 244,895 257,235
Financial derivatives other than reserves, net transactions 29,024 −16,969 −12,255 −20,061 −7,806
Statistical discrepancy          
Statistical discrepancy1 −36,814 −50,090 89,202 −42,789 −131,991
Balances          
Balance on current account −123,923 −103,568 −126,604 −134,377 −7,773
Balance on goods and services −156,256 −136,875 −162,011 −166,964 −4,953
Balance on goods −223,268 −205,525 −229,474 −233,053 −3,579
Balance on services 67,012 68,650 67,462 66,090 −1,372
Balance on primary income 61,189 62,332 60,339 60,435 96
Balance on secondary income −28,856 −29,026 −24,931 −27,849 −2,918
Balance on capital account −2 −5 559 8,856 8,297
Net lending (+) or net borrowing (-) from current- and capital-account transactions2 −123,925 −103,573 −126,045 −125,521 524
Net lending (+) or net borrowing (-) from financial-account transactions3 −160,739 −153,664 −36,843 −168,310 −131,467
p
Preliminary
r
Revised
n.a.
Not available
  1. The statistical discrepancy is the difference between net acquisition of financial assets and net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current and capital accounts.
  2. Sum of current- and capital-account balances.
  3. Sum of net U.S. acquisition of financial assets and net transactions in financial derivatives less net U.S. incurrence of liabilities.

Note. The statistics are presented in table 1.2 on BEA’s website.

Current-account highlights

  • The deficit on goods increased $3.6 billion in the fourth quarter to $233.1 billion.
  • The surplus on services decreased $1.4 billion to $66.1 billion.
  • The surplus on primary income increased $0.1 billion to $60.4 billion.
  • The deficit on secondary income increased $2.9 billion to $27.8 billion.

Capital-account highlights

Capital-transfer receipts were $8.9 billion in the fourth quarter. The transactions reflected receipts from foreign insurance companies for losses resulting from the wildfires in California. For information on transactions associated with natural disasters, see “What are the effects of hurricanes and other disasters on the international economic accounts?”

Financial-account highlights

  • Net U.S. acquisition of financial assets excluding financial derivatives increased $93.6 billion to $172.0 billion (chart 2).
  • Net U.S. incurrence of liabilities excluding financial derivatives increased $217.3 billion to $320.2 billion.
  • Transactions in financial derivatives other than reserves reflected fourth-quarter net borrowing of $20.1 billion, a $7.8 billion increase in net borrowing from the third quarter.
Chart 2. Acquisition and Financial Assets and Incurrence of Liabilities Excluding Financial Derivatives, Line Chart

[Click chart to expand]

Statistical discrepancy

The statistical discrepancy was –$42.8 billion in the fourth quarter following a statistical discrepancy of $89.2 billion in the third quarter.

Exports of goods and services and income receipts increased $4.1 billion, or 0.4 percent, in the fourth quarter to $934.3 billion (charts 3 and 4 and table B).

  • Primary income receipts increased $5.6 billion, or 2.1 percent, to $271.9 billion, primarily reflecting increases in portfolio investment income and in other investment income. A decrease in direct investment income partly offset the increases. For more information on direct investment income, see “Effects of the 2017 Tax Cuts and Jobs Act on Components of the International Transactions Accounts.”
  • Services exports increased $2.1 billion, or 1.0 percent, to $209.3 billion, mostly reflecting increases in other business services, primarily professional and management services; in travel (for all purposes including education), primarily personal travel; and in financial services.
  • Goods exports decreased $3.7 billion, or 0.9 percent, to $416.1 billion, mainly reflecting a decrease in foods, feeds, and beverages, mostly soybeans.
Chart 3. Current-Account Transactions, Line Chart.

[Click chart to expand]

Chart 4. Percent Change in Exports of Goods and Services and Income Receipts, Bar Chart.

[Click chart to expand]

Table B. Exports of Goods and Services and Income Receipts
[Millions of dollars, seasonally adjusted]
  2018 Change 2018:III to 2018:IV
Ir IIr IIIr IVp
Exports of goods and services and income receipts 903,027 934,221 930,192 934,254 4,062
Exports of goods 409,210 427,198 419,830 416,094 −3,736
General merchandise 402,694 421,872 413,725 411,818 −1,907
Foods, feeds, and beverages 31,369 38,552 34,254 29,077 −5,177
Industrial supplies and materials 125,379 134,692 135,330 136,366 1,036
Energy products 46,929 54,162 55,619 58,072 2,453
Of which: Petroleum and products 40,071 47,041 48,935 50,442 1,507
Nonenergy products 78,450 80,530 79,711 78,294 −1,417
Capital goods except automotive 138,221 141,658 140,294 142,099 1,805
Automotive vehicles, parts, and engines 42,177 40,304 38,776 37,340 −1,436
Consumer goods except food and automotive 51,409 51,093 51,013 51,863 850
Other general merchandise 14,138 15,572 14,057 15,072 1,015
Net exports of goods under merchanting 66 77 70 64 −6
Nonmonetary gold 6,450 5,249 6,034 4,212 −1,822
           
Exports of services1 206,012 205,835 207,257 209,321 2,064
Maintenance and repair services n.i.e. 7,289 7,471 7,684 7,598 −86
Transport 22,951 23,455 22,885 23,013 128
Travel (for all purposes including education) 53,489 53,636 53,376 53,968 592
Business 9,883 9,737 9,705 9,713 8
Personal 43,606 43,899 43,671 44,255 584
Insurance services 4,555 4,557 5,017 5,035 18
Financial services 27,909 28,226 28,278 28,630 352
Charges for the use of intellectual property n.i.e. 33,577 32,400 32,209 32,265 56
Telecommunications, computer, and information services 10,911 10,628 11,163 11,257 94
Other business services 40,582 40,159 41,711 42,338 627
Government goods and services n.i.e. 4,748 5,304 4,933 5,218 285
           
Primary income receipts 255,972 266,192 266,297 271,901 5,604
Investment income 254,378 264,587 264,681 270,284 5,603
Direct investment income 134,983 140,099 138,869 137,864 −1,005
Income on equity 128,014 132,805 131,717 130,750 −967
Dividends and withdrawals 294,685 183,580 100,741 85,902 −14,839
Reinvested earnings −166,671 −50,775 30,975 44,848 13,873
Interest 6,969 7,293 7,152 7,114 −38
Portfolio investment income 99,244 102,199 103,216 106,674 3,458
Income on equity and investment fund shares 65,937 67,344 67,921 71,075 3,154
Interest on debt securities 33,307 34,856 35,295 35,599 304
Other investment income 19,982 22,242 22,366 25,559 3,193
Reserve asset income 169 47 230 187 −43
Compensation of employees 1,594 1,605 1,615 1,616 1
Secondary income (current transfer) receipts2 31,833 34,996 36,809 36,938 129
p
Preliminary
r
Revised
n.i.e.
Not included elsewhere
  1. See also Shari A. Allen, Alexis N. Grimm, and Christopher P. Steiner, “U.S. International Services: Trade in Services in 2017 and Services Supplied Through Affiliates in 2016,” Survey of Current Business 98 (October 2018).
  2. Secondary income receipts include U.S. government and private transfers, such as fines and penalties, withholding taxes, insurance-related transfers, and other current transfers.

Note. The statistics are presented in table 1.2, table 2.1, table 3.1, table 4.1, and table 5.1 on BEA’s website.

Imports of goods and services and income payments increased $11.8 billion, or 1.1 percent, in the fourth quarter to $1.1 trillion (charts 3 and 5 and table C).

  • Primary income payments increased $5.5 billion, or 2.7 percent, to $211.5 billion, mainly reflecting increases in other investment income and in portfolio investment income.
  • Services imports increased $3.4 billion, or 2.5 percent, to $143.2 billion, mostly reflecting increases in travel (for all purposes including education), primarily personal travel, and in transport, primarily sea freight transport and air passenger transport.
  • Secondary income payments increased $3.0 billion, or 4.9 percent, to $64.8 billion, mostly reflecting an increase in U.S. government grants.
Chart 5. Percent Change in Imports of Goods and Services and Income Payments, Bar Chart.

[Click chart to expand]

Table C. Imports of Goods and Services and Income Payments
[Millions of dollars, seasonally adjusted]
  2018 Change 2018:III to 2018:IV
Ir IIr IIIr IVp
Imports of goods and services and income payments 1,026,950 1,037,789 1,056,796 1,068,631 11,835
Imports of goods 632,478 632,723 649,303 649,147 −156
General merchandise 629,670 630,044 646,832 646,528 −304
Foods, feeds, and beverages 37,001 37,077 37,083 37,270 187
Industrial supplies and materials 142,402 146,515 150,870 143,638 −7,232
Energy products 62,199 64,728 68,468 60,056 −8,412
Of which: Petroleum and products 58,747 61,324 64,979 55,747 −9,232
Nonenergy products 80,203 81,787 82,402 83,582 1,180
Capital goods except automotive 170,623 174,194 176,726 175,039 −1,687
Automotive vehicles, parts, and engines 92,914 90,179 93,802 96,302 2,500
Consumer goods except food and automotive 164,026 157,432 162,120 166,639 4,519
Other general merchandise 22,703 24,648 26,230 27,639 1,409
Nonmonetary gold 2,809 2,678 2,472 2,620 148
           
Imports of services1 139,000 137,185 139,794 143,231 3,437
Maintenance and repair services n.i.e. 2,093 2,062 2,275 2,291 16
Transport 26,189 26,692 27,067 28,357 1,290
Travel (for all purposes including education) 35,435 35,502 35,650 37,570 1,920
Business 3,981 4,157 4,130 4,160 30
Personal 31,453 31,345 31,520 33,410 1,890
Insurance services 9,754 9,554 9,546 9,375 −171
Financial services 7,534 7,719 7,715 7,822 107
Charges for the use of intellectual property n.i.e. 13,921 13,048 13,448 13,335 −113
Telecommunications, computer, and information services 10,172 9,828 10,210 10,206 −4
Other business services 28,251 27,048 28,074 28,492 418
Government goods and services n.i.e. 5,653 5,731 5,809 5,785 −24
           
Primary income payments 194,783 203,860 205,958 211,465 5,507
Investment income 189,797 198,793 200,875 206,355 5,480
Direct investment income 57,381 61,023 60,149 59,336 −813
Portfolio investment income 114,968 116,895 116,746 118,815 2,069
Income on equity and investment fund shares 38,844 40,216 39,338 41,039 1,701
Interest on debt securities 76,124 76,678 77,408 77,776 368
Other investment income 17,448 20,875 23,979 28,204 4,225
Compensation of employees 4,986 5,067 5,084 5,110 26
Secondary income (current transfer) payments2 60,689 64,021 61,740 64,787 3,047
           
Supplemental detail on insurance transactions:          
Premiums paid 23,986 24,557 25,140 25,092 −48
Losses recovered 18,689 18,935 19,545 27,839 8,294
p
Preliminary
r
Revised
n.i.e.
Not included elsewhere
  1. See also Shari A. Allen, Alexis N. Grimm, and Christopher P. Steiner, “U.S. International Services: Trade in Services in 2017 and Services Supplied Through Affiliates in 2016,” Survey of Current Business 98 (October 2018).
  2. Secondary income payments include U.S. government and private transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes, personal transfers (remittances), insurance-related transfers, and other current transfers.

Note. The statistics are presented in table 1.2, table 2.1, table 3.1, table 4.1, and table 5.1 on BEA’s website.

Acquisition of financial assets

  • Net U.S. acquisition of other investment assets was $223.2 billion following net U.S. liquidation of $52.0 billion in the third quarter (chart 6 and table D). This change mostly reflected net U.S acquisition of currency and deposits and net U.S. provision of loans to foreign residents following net withdrawal of U.S. deposits from foreign banks and net foreign repayment of loans in the third quarter.
  • Net U.S. sales of portfolio investment assets were $149.6 billion following net U.S. purchases of $70.1 billion in the third quarter. This change reflected net U.S. sales of both equity and debt instruments following net U.S. purchases in the third quarter.
  • Net U.S. acquisition of direct investment assets increased $35.8 billion to $96.2 billion. For more information on recent transactions in direct investment assets, see “Effects of the 2017 Tax Cuts and Jobs Act on Components of the International Transactions Accounts.”

Incurrence of liabilities

Net U.S. incurrence of other investment liabilities was $244.9 billion following net U.S. repayment of $12.3 billion in the third quarter. This change primarily reflected net foreign provision of loans and net U.S. incurrence of currency and deposits following net U.S. repayment of loans and net foreign withdrawal of currency and deposits in the third quarter.

Chart 6. Transactions in Financial Assets and Liabilities Excluding Financial Derivatives, Bar Chart.

[Click chart to expand]

Table D. Net U.S. Acquisition of Financial Assets and Net U.S. Incurrence of Liabilities
[Millions of dollars, seasonally adjusted]
  2018 Change 2018:III to 2018:IV
Ir IIr IIIr IVp
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 251,218 −199,905 78,338 171,967 93,629
Direct investment assets −139,234 −68,023 60,396 96,229 35,833
Equity −167,640 −52,771 64,334 97,536 33,202
Equity other than reinvestment of earnings −969 −1,996 33,359 52,688 19,329
Reinvestment of earnings −166,671 −50,775 30,975 44,848 13,873
Debt instruments 28,406 −15,252 −3,939 −1,307 2,632
Portfolio investment assets 304,094 −14,272 70,072 −149,565 −219,637
Equity and investment fund shares 200,871 −70,830 32,245 −65,105 −97,350
Debt securities 103,223 56,559 37,828 −84,460 −122,288
Short-term securities 27,771 2,469 21,546 −34,190 −55,736
Long-term corporate securities 53,741 37,717 11,435 −36,588 −48,023
Other long-term securities 21,711 16,373 4,847 −13,682 −18,529
Other investment assets 86,365 −120,679 −51,953 223,199 275,152
Currency and deposits 53,816 −22,388 −23,109 143,516 166,625
Loans 33,356 −99,576 −27,225 77,718 104,943
Trade credit and advances −807 1,285 −1,618 1,964 3,582
Reserve assets −7 3,068 −177 2,105 2,282
Monetary gold 0 0 0 0 0
Special drawing rights 33 33 43 47 4
Reserve position in the International Monetary Fund −73 3,136 −288 2,049 2,337
Other reserve assets 34 −101 68 9 −59
           
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 440,981 −63,211 102,926 320,216 217,290
Direct investment liabilities 57,850 16,551 104,506 88,175 −16,331
Equity 72,562 45,505 114,541 99,600 −14,941
Equity other than reinvestment of earnings 37,499 10,591 77,886 68,982 −8,904
Reinvestment of earnings 35,063 34,913 36,655 30,618 −6,037
Debt instruments −14,712 −28,954 −10,035 −11,425 −1,390
Portfolio investment liabilities 301,503 20,596 10,760 −12,853 −23,613
Equity and investment fund shares 154,313 291 −95,528 88,160 183,688
Debt securities 147,190 20,305 106,287 −101,013 −207,300
Short term 31,355 37,436 −53,098 13,079 66,177
Treasury bills and certificates 13,560 33,709 −35,170 30,182 65,352
Federally sponsored agency securities 2,214 −680 −6,121 −2,081 4,040
Other short-term securities 15,581 4,407 −11,807 −15,022 −3,215
Long term 115,835 −17,131 159,386 −114,093 −273,479
Treasury bonds and notes 73,078 −12,004 99,265 −87,053 −186,318
Federally sponsored agency securities 37,775 6,518 19,575 16,574 −3,001
Corporate bonds and notes 4,731 −13,257 40,733 −42,175 −82,908
Other 251 1,612 −187 −1,439 −1,252
Other investment liabilities 81,628 −100,358 −12,340 244,895 257,235
Currency 16,970 19,391 19,606 9,364 −10,242
Deposits −27,004 −77,318 −26,640 95,218 121,858
Loans 82,566 −47,064 −7,584 141,815 149,399
Trade credit and advances 9,096 4,634 2,278 −1,502 −3,780
Special drawing rights allocations 0 0 0 0 0
p
Preliminary
r
Revised

Note. The statistics are presented in table 1.2, table 6.1, table 7.1, and table 8.1 on BEA’s website.

In the international transactions accounts, income on equity, or earnings, of foreign affiliates of U.S. multinational enterprises consists of a portion that is repatriated to the parent company in the United States in the form of dividends and a portion that is reinvested in foreign affiliates. At times, repatriation of dividends exceeds current-period earnings, resulting in negative values being recorded for reinvested earnings. In 2018, dividends exceeded earnings, reflecting the repatriation of accumulated prior earnings of foreign affiliates of U.S. multinational enterprises by their parent companies in the United States in response to the 2017 Tax Cuts and Jobs Act (TCJA), which generally eliminated taxes on repatriated earnings. Dividends were $664.9 billion while reinvested earnings were –$141.6 billion (chart 7 and tables B and E). The reinvested earnings are also reflected in the net acquisition of direct investment assets in the financial account (table D).

For more information, see “How does the 2017 Tax Cuts and Jobs Act affect BEA's business income statistics?” and “How are the International Transactions Accounts affected by an increase in direct investment dividend receipts?”

Chart 7. Direct Investment Income Receipts and Components, Line Chart.

[Click chart to expand]

Table E. Direct Investment Earnings Receipts
[Billions of dollars, seasonally adjusted]
  2017 2018 Annual
I II III IV Ir IIr IIIr IVp 2017 2018p
Direct investment earnings 114.1 114.4 120.3 128.9 128.0 132.8 131.7 130.8 477.7 523.3
Dividends 38.2 34.9 55.1 26.9 294.7 183.6 100.7 85.9 155.1 664.9
Reinvested earnings 75.9 79.5 65.2 102.0 −166.7 −50.8 31.0 44.8 322.6 −141.6
p
Preliminary
r
Revised

In addition to the repatriation of accumulated earnings, some companies made other changes to their business practices in reaction to the TCJA. For example, some insurance companies changed how they operate in response to the base erosion and anti-abuse tax (BEAT) provision of the TCJA. BEAT is a tax on certain payments from a U.S. company to a related foreign party, which can include premium payments for reinsurance. In response to the new tax, many U.S. insurance companies terminated these intracompany reinsurance contracts. As a result, premiums paid by U.S. insurers to foreign insurers in 2018 were $98.8 billion, down from $129.9 billion in 2017 (table C). Similarly, insurance services imports in 2018 were $38.2 billion, down from $50.7 billion in 2017.

For more information on the estimation methods used to compile insurance services, see the insurance section in “U.S. International Economic Accounts: Concepts and Methods.”

The U.S. international transactions statistics for the third quarter of 2018 have been updated to incorporate newly available and revised source data (table F). In addition, the statistics for the first three quarters of 2018 have been updated to align the seasonally adjusted statistics with annual totals.

Table F. Updates to the Third Quarter 2018 International Transactions Aggregates
[Millions of dollars, seasonally adjusted]
  Preliminary Estimates Revised Estimates
Balance on current account −124,817 −126,604
Balance on goods −227,012 −229,474
Balance on services 68,356 67,462
Balance on primary income 59,425 60,339
Balance on secondary income (current transfers) −25,586 −24,931
Net lending or borrowing from financial-account transactions −31,289 −36,843
Net U.S. acquisition of financial assets 132,689 78,338
Net U.S. incurrence of liabilities 151,723 102,926
Financial derivatives other than reserves, net transactions −12,255 −12,255

Current-account highlights

In 2018, the current-account deficit increased $39.3 billion, or 8.8 percent, reflecting an increase in the deficit on goods that was partly offset by increases in the surpluses on primary income and on services and a decrease in the deficit on secondary income (chart 8 and table G).

Exports of goods and services and income receipts

Exports of goods and services and income receipts increased $268.5 billion, or 7.8 percent, in 2018 to $3.7 trillion (chart 9).

  • Primary income receipts increased $132.2 billion, or 14.2 percent, to $1.1 trillion, led by increases in portfolio investment income and in direct investment income.
  • Goods exports increased $118.9 billion, or 7.7 percent, to $1.7 trillion, led by an increase in industrial supplies and materials, primarily petroleum and products.
  • Services exports increased $30.7 billion, or 3.9 percent, to $0.8 trillion, led by an increase in other business services.
Chart 8. U.S. Current-Account and Component Annual Balances, 1960–2018, Line Chart.

[Click chart to expand]

Chart 9. Annual Percent Change in Exports of Goods and Services and Income Receipts, Bar Chart.

[Click chart to expand]

Imports of goods and services and income payments

Imports of goods and services and income payments increased $307.8 billion, or 7.9 percent, to $4.2 trillion (chart 10).

  • Goods imports increased $202.8 billion, or 8.6 percent, to $2.6 trillion, led by increases in industrial supplies and materials, in capital goods, and in consumer goods.
  • Primary income payments increased $109.7 billion, or 15.5 percent, to $0.8 trillion, led by an increase in other investment income.
Chart 10. Annual Percent Change in Imports of Goods and Services and Income Payments, Bar Chart.

[Click chart to expand]

Table G. Current Account
[Millions of dollars]
  2015 2016 2017 2018p Change 2017 to 2018
Current account          
Exports of goods and services and income receipts (credits) 3,207,288 3,183,783 3,433,239 3,701,694 268,455
Exports of goods 1,511,381 1,456,957 1,553,383 1,672,331 118,948
Foods, feeds, and beverages 127,721 130,519 132,744 133,253 509
Industrial supplies and materials 418,141 387,350 456,188 531,768 75,580
Capital goods except automotive 539,805 519,890 533,574 562,273 28,699
Automotive vehicles, parts, and engines 151,894 150,311 157,641 158,597 956
Consumer goods except food and automotive 197,318 193,254 197,134 205,378 8,244
Other general merchandise 54,917 54,791 54,358 58,840 4,482
Net exports of goods under merchanting 261 300 200 277 77
Nonmonetary gold 21,325 20,542 21,544 21,945 401
Exports of services 755,310 758,888 797,690 828,425 30,735
Maintenance and repair services n.i.e. 23,384 25,004 26,430 30,041 3,611
Transport 87,725 84,679 88,598 92,304 3,706
Travel (for all purposes including education) 206,936 206,902 210,747 214,469 3,722
Insurance services 16,248 17,067 18,047 19,164 1,117
Financial services 102,435 99,384 109,642 113,043 3,401
Charges for the use of intellectual property n.i.e. 124,769 124,734 128,364 130,451 2,087
Telecommunications, computer, and information services 36,578 38,548 42,219 43,959 1,740
Other business services 137,148 143,768 154,313 164,790 10,477
Government goods and services n.i.e. 20,087 18,801 19,329 20,202 873
Primary income receipts 810,073 830,174 928,118 1,060,362 132,244
Direct investment income 459,901 456,426 504,404 551,815 47,411
Portfolio investment income 312,028 326,325 354,406 411,334 56,928
Other investment income 31,346 40,850 62,620 90,150 27,530
Reserve asset income 219 108 385 632 247
Compensation of employees 6,578 6,466 6,302 6,431 129
Secondary income (current transfer) receipts 130,525 137,764 154,049 140,576 −13,473
Imports of goods and services and income payments (debits) 3,615,053 3,616,656 3,882,380 4,190,166 307,786
Imports of goods 2,273,249 2,208,008 2,360,878 2,563,651 202,773
Foods, feeds, and beverages 128,762 131,024 138,810 148,431 9,621
Industrial supplies and materials 492,483 441,848 511,561 583,426 71,865
Capital goods except automotive 607,160 593,854 643,620 696,582 52,962
Automotive vehicles, parts, and engines 350,049 351,058 359,849 373,197 13,348
Consumer goods except food and automotive 596,417 585,177 603,922 650,217 46,295
Other general merchandise 85,789 86,887 90,913 101,220 10,307
Nonmonetary gold 12,590 18,160 12,203 10,578 −1,625
Imports of services 491,966 509,838 542,471 559,211 16,740
Maintenance and repair services n.i.e. 9,013 8,731 8,337 8,721 384
Transport 97,006 96,939 101,744 108,305 6,561
Travel (for all purposes including education) 114,548 123,569 135,024 144,156 9,132
Insurance services 47,420 49,900 50,665 38,228 −12,437
Financial services 25,769 25,752 28,931 30,790 1,859
Charges for the use of intellectual property n.i.e. 40,608 46,577 51,284 53,751 2,467
Telecommunications, computer, and information services 36,704 37,391 40,054 40,417 363
Other business services 99,368 99,476 104,385 111,865 7,480
Government goods and services n.i.e. 21,531 21,503 22,047 22,978 931
Primary income payments 606,464 637,151 706,386 816,066 109,680
Direct investment income 175,256 183,812 205,976 237,890 31,914
Portfolio investment income 398,584 407,603 432,510 467,424 34,914
Other investment income 14,968 26,599 48,213 90,506 42,293
Compensation of employees 17,656 19,139 19,687 20,246 559
Secondary income (current transfer) payments 243,372 261,659 272,645 251,237 −21,408
Balances          
Balance on current account −407,764 −432,873 −449,142 −488,472 −39,330
Balance on goods −761,868 −751,051 −807,495 −891,320 −83,825
Balance on services 263,343 249,050 255,219 269,214 13,995
Balance on primary income 203,608 193,023 221,731 244,295 22,564
Balance on secondary income −112,848 −123,895 −118,597 −110,661 7,936
p
Preliminary
n.i.e.
Not included elsewhere

Note. The statistics are presented in table 1.2 on BEA’s website.

Capital account

Capital transfer receipts were $9.4 billion in 2018 (table H). The transactions reflected receipts from foreign insurance companies for losses resulting from Hurricane Florence and the wildfires in California. For more information, see “What are the effects of hurricanes and other disasters on the international economic accounts?”

Acquisition of financial assets

Net U.S. acquisition of financial assets excluding financial derivatives decreased $881.1 billion to $301.6 billion.

  • Net U.S. withdrawal of direct investment assets was $50.6 billion following net U.S. acquisition of $379.2 billion in 2017. The net withdrawal of direct investment assets reflected U.S. parent repatriation of previously reinvested earnings in response to the TCJA. For more information, see “Effects of the 2017 Tax Cuts and Jobs Act on Components of the International Transactions Accounts.”
  • Net U.S. purchases of portfolio investment assets decreased $376.4 billion to $210.3 billion, mostly reflecting a decrease in net U.S. purchases of foreign debt securities.
  • Net U.S. acquisition of other investment assets decreased $81.6 billion to $136.9 billion. This change mostly reflected net foreign repayment of loans following net U.S. provision in 2017.

Incurrence of liabilities

Net U.S. incurrence of liabilities excluding financial derivatives decreased $736.8 billion to $800.9 billion.

  • Net foreign purchases of portfolio investment liabilities decreased $479.2 billion to $320.0 billion, mostly reflecting a decrease in net foreign purchases of U.S. bonds.
  • Net U.S. incurrence of other investment liabilities decreased $169.8 billion to $213.8 billion, mainly reflecting a decrease in net U.S. incurrence of currency and deposits.
  • Net U.S. incurrence of direct investment liabilities decreased $87.7 billion to $267.1 billion, mainly reflecting net U.S. repayment of debt liabilities following net U.S. incurrence in 2017.

Financial derivatives

Transactions in financial derivatives other than reserves reflected net borrowing of $20.3 billion in 2018 following net lending of $23.1 billion in 2017.

Statistical discrepancy

The statistical discrepancy was –$40.5 billion in 2018 following a statistical discrepancy of $92.5 billion in 2017.

Table H. Capital and Financial Accounts and Statistical Discrepancy
[Millions of dollars]
  2015 2016 2017 2018p Change 2017 to 2018
Capital account          
Capital transfer receipts and other credits 0 0 24,788 9,418 −15,370
Capital transfer payments and other debits 42 59 42 10 −32
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 202,208 348,625 1,182,749 301,618 −881,131
Direct investment assets 307,058 312,975 379,222 −50,633 −429,855
Equity 297,440 336,657 352,504 −58,540 −411,044
Equity other than reinvestment of earnings 7,626 43,747 29,878 83,082 53,204
Reinvestment of earnings 289,814 292,910 322,626 −141,622 −464,248
Debt instruments 9,618 −23,683 26,718 7,907 −18,811
Portfolio investment assets 160,410 36,283 586,695 210,330 −376,365
Equity and investment fund shares 196,922 21,743 166,827 97,180 −69,647
Debt securities −36,511 14,541 419,868 113,150 −306,718
Short term 43,045 −27,409 193,855 17,596 −176,259
Long term −79,556 41,950 226,013 95,554 −130,459
Other investment assets −258,968 −2,723 218,522 136,932 −81,590
Currency and deposits −191,472 −91,317 171,952 151,834 −20,118
Loans −65,793 87,690 40,862 −15,727 −56,589
Trade credit and advances −1,702 903 5,708 825 −4,883
Reserve assets −6,292 2,090 −1,690 4,989 6,679
Monetary gold 0 0 0 0 0
Special drawing rights 9 684 78 156 78
Reserve position in the International Monetary Fund −6,485 1,348 −1,812 4,824 6,636
Other reserve assets 185 58 44 10 −34
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 501,121 741,529 1,537,683 800,913 −736,770
Direct investment liabilities 509,087 494,455 354,829 267,081 −87,748
Equity 423,974 387,599 308,406 332,207 23,801
Equity other than reinvestment of earnings 340,867 295,955 200,547 194,958 −5,589
Reinvestment of earnings 83,107 91,644 107,859 137,250 29,391
Debt instruments 85,114 106,856 46,423 −65,126 −111,549
Portfolio investment liabilities 213,910 231,349 799,182 320,006 −479,176
Equity and investment fund shares −187,306 −139,700 155,680 147,236 −8,444
Debt securities 401,216 371,049 643,503 172,769 −470,734
Short term 45,833 −12,092 15,851 28,772 12,921
Long term 355,383 383,141 627,652 143,997 −483,655
Other investment liabilities −221,876 15,725 383,671 213,826 −169,845
Currency and deposits 35,103 17,199 217,427 29,587 −187,840
Loans −264,970 −7,574 150,834 169,734 18,900
Trade credit and advances 7,991 6,101 15,410 14,505 −905
Special drawing rights allocations 0 0 0 0 0
Financial derivatives other than reserves, net transactions −27,035 7,827 23,074 −20,261 −43,335
Statistical discrepancy          
Statistical discrepancy1 81,859 47,855 92,536 −40,492 −133,028
Balances          
Balance on capital account −42 −59 24,746 9,409 −15,337
Net lending (+) or net borrowing (-) from current- and capital-account transactions2 −407,807 −432,932 −424,395 −479,064 −54,669
Net lending (+) or net borrowing (-) from financial-account transactions3 −325,948 −385,078 −331,860 −519,556 −187,696
p
Preliminary
  1. The statistical discrepancy is the difference between net acquisition of assets and net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current and capital accounts.
  2. Sum of current-account balance (table G) and capital-account balance.
  3. Sum of net U.S. acquisition of financial assets and net transactions in financial derivatives less net U.S. incurrence of liabilities.

Note. The statistics are presented in table 1.2 and table 6.1 on BEA’s website.