U.S. International Transactions

Fourth Quarter and Year 2019

By Molly Garber  |  Volume 100, Number 4  |  April 22, 2020

Download PDF

The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, narrowed by $15.6 billion, or 12.4 percent, to $109.8 billion in the fourth quarter of 2019 (chart 1 and table A). The revised third-quarter deficit was $125.4 billion.

The deficit was 2.0 percent of current-dollar gross domestic product (GDP), down from 2.3 percent in the third quarter.

The $15.6 billion narrowing of the current-account deficit in the fourth quarter mainly reflected a reduced deficit on goods that was partly offset by an expanded deficit on secondary income.

The U.S. current-account deficit widened by $7.4 billion, or 1.5 percent, to $498.4 billion in 2019. The deficit was 2.3 percent of current-dollar GDP, down from 2.4 percent in 2018.

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

[Click chart to expand]

Table A. U.S. International Transactions
[Millions of dollars, seasonally adjusted]
  2019 Change 2019:III to 2019:IV
I r II r III r IV p
Current account          
Exports of goods and services and income receipts (credits) 939,453 947,211 941,193 936,087 −5,106
Exports of goods and services 625,487 625,475 623,413 623,658 245
Goods 417,623 413,217 412,244 409,722 −2,522
Services 207,865 212,258 211,169 213,936 2,767
Primary income receipts 278,151 286,155 280,808 277,987 −2,821
Secondary income (current transfer) receipts 35,814 35,581 36,972 34,441 −2,531
Imports of goods and services and income payments (debits) 1,076,351 1,073,464 1,066,571 1,045,908 −20,663
Imports of goods and services 783,245 785,865 781,836 763,512 −18,324
Goods 635,666 637,734 633,142 612,506 −20,636
Services 147,579 148,131 148,694 151,006 2,312
Primary income payments 221,112 219,385 214,903 210,704 −4,199
Secondary income (current transfer) payments 71,994 68,213 69,832 71,692 1,860
Capital account          
Capital transfer receipts and other credits 0 0 0 0 0
Capital transfer payments and other debits 0 0 10 n.a. n.a.
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 111,706 142,647 171,561 998 −170,563
Direct investment assets 8,617 111,767 42,085 35,202 −6,883
Portfolio investment assets −41,876 26,706 32,106 18,939 −13,167
Other investment assets 144,757 1,815 95,488 −53,352 −148,840
Reserve assets 208 2,359 1,882 210 −1,672
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 125,661 345,328 241,596 71,855 −169,741
Direct investment liabilities 109,459 92,686 65,171 43,495 −21,676
Portfolio investment liabilities −42,822 181,016 121,606 −28,183 −149,789
Other investment liabilities 59,023 71,626 54,820 56,543 1,723
Financial derivatives other than reserves, net transactions −21,421 −9,642 −6,382 −933 5,449
Statistical discrepancy          
Statistical discrepancy1 101,523 −86,071 48,972 38,032 −10,940
Balances          
Balance on current account −136,898 −126,252 −125,378 −109,822 15,556
Balance on goods and services −157,758 −160,390 −158,423 −139,854 18,569
Balance on goods −218,044 −224,517 −220,899 −202,784 18,115
Balance on services 60,286 64,128 62,476 62,930 454
Balance on primary income 57,039 66,769 65,905 67,283 1,378
Balance on secondary income −36,180 −32,632 −32,860 −37,251 −4,391
Balance on capital account 0 0 −10 0 10
Net lending (+) or net borrowing (-) from current- and capital-account transactions2 −136,898 −126,252 −125,389 −109,822 15,567
Net lending (+) or net borrowing (-) from financial-account transactions3 −35,376 −212,323 −76,417 −71,790 4,627
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.

Exports of goods and services to, and income received from, foreign residents decreased $5.1 billion to $936.1 billion in the fourth quarter (charts 2 and 3 and table B). Imports of goods and services from, and income paid to, foreign residents decreased $20.7 billion to $1.05 trillion (charts 2 and 4 and table C).

Chart 2. Current-Account Transactions

[Click chart to expand]

Trade in goods

Exports of goods decreased $2.5 billion to $409.7 billion, led by a decrease in foods, feeds, and beverages, mainly soybeans. Changes in the other major categories were nearly offsetting. Imports of goods decreased $20.6 billion to $612.5 billion, mainly reflecting decreases in consumer goods, led by apparel, footwear, and household goods, and in automotive, vehicles, parts, and engines, led by trucks, buses, and special purpose vehicles.

Trade in services

Exports of services increased $2.8 billion to $213.9 billion, mainly reflecting increases in travel, primarily other personal travel, and in other business services, mostly professional and management consulting services. Imports of services increased $2.3 billion to $151.0 billion, reflecting increases in all major categories. Increases were led by travel, mainly other personal travel.

Primary income

Receipts of primary income decreased $2.8 billion to $278.0 billion, and payments of primary income decreased $4.2 billion to $210.7 billion. The decreases in both receipts and payments mainly reflected decreases in other investment income, mostly interest on loans and deposits.

Secondary income

Receipts of secondary income decreased $2.5 billion to $34.4 billion, mainly reflecting a decrease in private sector fines and penalties, a component of private transfer receipts. Payments of secondary income increased $1.9 billion to $71.7 billion, mainly reflecting an increase in U.S. government grants.

Chart 3. Percent Change in Exports of Goods and Services and Income Receipts

[Click chart to expand]

Chart 4. Percent Change in Imports of Goods and Services and Income Payments

[Click chart to expand]

Table B. Exports of Goods and Services and Income Receipts
[Millions of dollars, seasonally adjusted]
  2019 Change 2019:III to 2019:IV
I r II r III r IV p
Exports of goods and services and income receipts 939,453 947,211 941,193 936,087 −5,106
Exports of goods 417,623 413,217 412,244 409,722 −2,522
General merchandise 412,906 408,967 407,162 404,031 −3,131
Foods, feeds, and beverages 31,835 34,304 33,926 31,068 −2,858
Industrial supplies and materials 130,523 132,768 129,503 132,911 3,408
Energy products 53,380 56,888 54,645 59,081 4,436
Of which: Petroleum and products 45,951 49,417 47,394 50,874 3,480
Nonenergy products 77,143 75,880 74,858 73,830 −1,028
Capital goods except automotive 141,791 135,408 134,842 135,322 480
Automotive vehicles, parts, and engines 41,306 40,287 41,491 38,764 −2,727
Consumer goods except food and automotive 52,826 51,328 51,675 49,860 −1,815
Other general merchandise 14,624 14,873 15,724 16,106 382
Net exports of goods under merchanting 92 85 139 114 −25
Nonmonetary gold 4,625 4,165 4,943 5,577 634
Exports of services1 207,865 212,258 211,169 213,936 2,767
Maintenance and repair services n.i.e. 8,069 7,750 8,211 8,495 284
Transport 23,040 23,270 22,621 22,426 −195
Travel (for all purposes including education) 54,190 53,373 52,409 53,511 1,102
Business 9,528 9,572 9,245 9,514 269
Personal 44,661 43,801 43,164 43,997 833
Insurance services 4,404 4,359 4,731 4,787 56
Financial services 27,316 28,710 27,639 27,610 −29
Charges for the use of intellectual property n.i.e. 31,568 32,741 32,210 32,413 203
Telecommunications, computer, and information services 11,414 11,894 12,045 12,460 415
Other business services 42,974 44,885 45,620 46,592 972
Government goods and services n.i.e. 4,890 5,277 5,684 5,642 −42
Primary income receipts 278,151 286,155 280,808 277,987 −2,821
Investment income 276,447 284,445 279,095 276,279 −2,816
Direct investment income 143,551 147,657 143,460 145,320 1,860
Income on equity 137,075 141,172 136,681 138,556 1,875
Dividends and withdrawals 95,272 69,909 99,449 96,278 −3,171
Reinvested earnings 41,803 71,263 37,232 42,278 5,046
Interest 6,476 6,485 6,779 6,764 −15
Portfolio investment income 103,721 107,619 108,474 107,829 −645
Income on equity and investment fund shares 68,621 72,181 72,761 71,740 −1,021
Interest on debt securities 35,100 35,438 35,713 36,089 376
Other investment income 28,943 28,921 26,918 22,978 −3,940
Reserve asset income 231 248 243 151 −92
Compensation of employees 1,704 1,710 1,712 1,709 −3
Secondary income (current transfer) receipts2 35,814 35,581 36,972 34,441 −2,531
p
Preliminary
r
Revised
n.i.e.
Not included elsewhere
  1. See also Shari A. Allen, Thomas Anderson, and Alexis N. Grimm, “U.S. International Services: Trade in Services in 2018 and Services Supplied Through Affiliates in 2017,” Survey of Current Business 99 (October 2019).
  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.

Table C. Imports of Goods and Services and Income Payments
[Millions of dollars, seasonally adjusted]
  2019 Change 2019:III to 2019:IV
I r II r III r IV p
Imports of goods and services and income payments 1,076,351 1,073,464 1,066,571 1,045,908 −20,663
Imports of goods 635,666 637,734 633,142 612,506 −20,636
General merchandise 633,756 635,959 630,218 608,496 −21,722
Foods, feeds, and beverages 37,469 38,589 38,363 37,175 −1,188
Industrial supplies and materials 134,407 136,746 130,170 127,651 −2,519
Energy products 54,903 60,942 54,077 53,410 −667
Of which: Petroleum and products 50,514 57,443 50,700 49,778 −922
Nonenergy products 79,504 75,804 76,093 74,241 −1,852
Capital goods except automotive 172,332 170,706 169,703 168,810 −893
Automotive vehicles, parts, and engines 95,396 96,867 95,636 89,057 −6,579
Consumer goods except food and automotive 167,453 165,124 167,726 155,863 −11,863
Other general merchandise 26,698 27,926 28,621 29,940 1,319
Nonmonetary gold 1,911 1,775 2,924 4,010 1,086
Imports of services1 147,579 148,131 148,694 151,006 2,312
Maintenance and repair services n.i.e. 2,164 2,277 2,175 2,207 32
Transport 27,931 27,455 27,245 27,485 240
Travel (for all purposes including education) 37,774 37,773 37,905 38,869 964
Business 4,035 3,964 4,020 3,942 −78
Personal 33,739 33,809 33,884 34,927 1,043
Insurance services 11,680 12,131 12,337 12,433 96
Financial services 8,448 8,385 8,396 8,440 44
Charges for the use of intellectual property n.i.e. 14,258 14,243 14,155 14,416 261
Telecommunications, computer, and information services 10,309 10,762 10,934 11,151 217
Other business services 29,113 29,142 29,441 29,870 429
Government goods and services n.i.e. 5,903 5,962 6,105 6,135 30
Primary income payments 221,112 219,385 214,903 210,704 −4,199
Investment income 216,142 214,373 209,762 205,508 −4,254
Direct investment income 65,138 61,618 59,176 59,839 663
Portfolio investment income 119,776 121,649 122,038 121,769 −269
Income on equity and investment fund shares 40,849 42,723 42,538 42,047 −491
Interest on debt securities 78,927 78,926 79,500 79,723 223
Other investment income 31,228 31,106 28,548 23,901 −4,647
Compensation of employees 4,970 5,013 5,142 5,195 53
Secondary income (current transfer) payments2 71,994 68,213 69,832 71,692 1,860
           
Supplemental detail on insurance transactions:          
Premiums paid 31,142 31,603 32,007 31,872 −135
Losses recovered 19,789 19,415 18,922 18,896 −26
p
Preliminary
r
Revised
n.i.e.
Not included elsewhere
  1. See also Shari A. Allen, Thomas Anderson, and Alexis N. Grimm, “U.S. International Services: Trade in Services in 2018 and Services Supplied Through Affiliates in 2017,” Survey of Current Business 99 (October 2019).
  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.

Net financial-account transactions were −$71.8 billion in the fourth quarter, reflecting net U.S. borrowing from foreign residents.

Financial assets

Fourth-quarter transactions increased U.S. residents' foreign financial assets by $1.0 billion (charts 5 and 6 and table D). Transactions increased direct investment assets, mainly equity, by $35.2 billion; portfolio investment assets by $18.9 billion, resulting from large and mostly offsetting transactions in equity securities and debt securities; and reserve assets by $0.2 billion. Transactions decreased other investment assets, primarily loans, by $53.4 billion.

Liabilities

Fourth-quarter transactions increased U.S. liabilities to foreign residents by $71.9 billion. Transactions increased direct investment liabilities, mainly equity, by $43.5 billion and other investment liabilities, mainly loans, by $56.5 billion. Transactions decreased portfolio investment liabilities, mainly short-term debt securities, by $28.2 billion.

Financial derivatives

Net transactions in financial derivatives were −$0.9 billion in the fourth quarter, reflecting net borrowing from foreign residents.

Chart 5. Acquisition of Financial Assets and Incurrence of Liabilities Excluding Financial Derivatives

[Click chart to expand]

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

[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]
  2019 Change 2019:III to 2019:IV
I r II r III r IV p
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 111,706 142,647 171,561 998 −170,563
Direct investment assets 8,617 111,767 42,085 35,202 −6,883
Equity 46,708 79,434 40,835 40,069 −766
Equity other than reinvestment of earnings 4,905 8,171 3,604 −2,210 −5,814
Reinvestment of earnings 41,803 71,263 37,232 42,278 5,046
Debt instruments −38,091 32,332 1,250 −4,867 −6,117
Portfolio investment assets −41,876 26,706 32,106 18,939 −13,167
Equity and investment fund shares −50,488 −30,446 −72,808 −97,224 −24,416
Debt securities 8,612 57,152 104,915 116,163 11,248
Short-term securities 16,591 23,109 64,297 63,505 −792
Long-term corporate securities −8,415 23,801 26,186 33,967 7,781
Other long-term securities 436 10,242 14,432 18,691 4,259
Other investment assets 144,757 1,815 95,488 −53,352 −148,840
Currency and deposits 12,962 37,392 16,306 39,539 23,233
Loans 133,716 −34,814 74,537 −92,012 −166,549
Trade credit and advances −1,921 −762 4,645 −879 −5,524
Reserve assets 208 2,359 1,882 210 −1,672
Monetary gold 0 0 0 0 0
Special drawing rights 57 60 63 57 −6
Reserve position in the International Monetary Fund 114 2,248 1,754 155 −1,599
Other reserve assets 38 51 64 −2 −66
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 125,661 345,328 241,596 71,855 −169,741
Direct investment liabilities 109,459 92,686 65,171 43,495 −21,676
Equity 86,910 71,032 46,848 77,627 30,779
Equity other than reinvestment of earnings 45,889 33,316 14,632 48,135 33,503
Reinvestment of earnings 41,021 37,716 32,216 29,493 −2,723
Debt instruments 22,549 21,654 18,322 −34,132 −52,454
Portfolio investment liabilities −42,822 181,016 121,606 −28,183 −149,789
Equity and investment fund shares −214,949 96,780 −69,633 −39,000 30,633
Debt securities 172,127 84,236 191,239 10,816 −180,423
Short term 22,022 −78,972 60,740 −48,581 −109,321
Treasury bills and certificates 18,041 −57,630 42,275 −43,855 −86,130
Federally sponsored agency securities 3,901 47 −748 5,493 6,241
Other short-term securities 80 −21,389 19,213 −10,219 −29,432
Long term 150,105 163,209 130,498 59,398 −71,100
Treasury bonds and notes 121,286 112,919 42,847 12,079 −30,768
Federally sponsored agency securities 10,670 19,732 10,120 3,887 −6,233
Corporate bonds and notes 17,366 31,959 75,934 42,751 −33,183
Other 783 −1,401 1,597 681 −916
Other investment liabilities 59,023 71,626 54,820 56,543 1,723
Currency 5,249 9,356 19,110 17,579 −1,531
Deposits −36,613 104,297 74,616 2,763 −71,853
Loans 83,326 −42,876 −37,737 32,975 70,712
Trade credit and advances 7,061 849 −1,169 3,226 4,395
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.

The U.S. international transactions statistics for the third quarter have been updated to incorporate newly available and revised source data (table E). In addition, the statistics for the first three quarters of 2019 have been updated to align the seasonally adjusted statistics with annual totals.

Table E. Updates to the Third Quarter 2019 International Transactions Aggregates
[Millions of dollars, seasonally adjusted]
  Preliminary estimates Revised estimates
Balance on current account −124,094 −125,378
Balance on goods −219,558 −220,899
Balance on services 62,199 62,476
Balance on primary income 68,719 65,905
Balance on secondary income (current transfers) −35,454 −32,860
Net lending or borrowing from financial-account transactions −47,862 −76,417
Net U.S. acquisition of financial assets 123,516 171,561
Net U.S. incurrence of liabilities 164,922 241,596
Financial derivatives other than reserves, net transactions −6,456 −6,382

The $7.4 billion widening of the current-account deficit in 2019 mainly reflected an expanded deficit on secondary income and a reduced surplus on services that were partly offset by a reduced deficit on goods (chart 7).

Chart 7. Annual U.S. Current-Account Balance and Its Components

[Click chart to expand]

Exports of goods and services to, and income received from, foreign residents increased $28.3 billion to $3.76 trillion in 2019 (chart 8 and table F). Imports of goods and services from, and income paid to, foreign residents increased $35.6 billion to $4.26 trillion (chart 9 and table F).

Trade in goods

Exports of goods decreased $21.5 billion to $1.65 trillion, mainly reflecting a decrease in capital goods, mostly civilian aircraft. Imports of goods decreased $42.6 billion to $2.52 trillion, mainly reflecting a decrease in industrial supplies and materials, mostly petroleum and products.

Trade in services

Exports of services increased $18.2 billion to $845.2 billion, mainly reflecting an increase in other business services, primarily professional and management consulting services. Imports of services increased $28.1 billion to $595.4 billion, reflecting increases in all major categories. Increases were led by travel, mostly other personal travel.

Primary income

Receipts of primary income increased $38.9 billion to $1.12 trillion, and payments of primary income increased $35.9 billion to $866.1 billion. The increases in both receipts and payments mainly reflected increases in other investment income, mostly interest on loans, and in portfolio investment income, mostly dividends on equity and investment fund shares.

Secondary income

Receipts of secondary income decreased $7.4 billion to $142.8 billion, mainly reflecting a decrease in private transfers, mostly insurance-related transfers. Payments of secondary income increased $14.3 billion to $281.7 billion, mainly reflecting an increase in private transfers, mostly insurance-related transfers.

Chart 8. Annual Percent Change in Exports of Goods and Services and Income Receipts

[Click chart to expand]

Chart 9. Annual Percent Change in Imports of Goods and Services and Income Payments

[Click chart to expand]

Table F. Current Account
[Millions of dollars]
  2016 2017 2018 2019 p Change 2018 to 2019
Current account          
Exports of goods and services and income receipts (credits) 3,188,508 3,444,824 3,735,684 3,763,944 28,260
Exports of goods 1,457,393 1,553,589 1,674,330 1,652,806 −21,524
Foods, feeds, and beverages 130,515 132,736 133,176 131,133 −2,043
Industrial supplies and materials 387,600 456,223 534,649 525,705 −8,944
Capital goods except automotive 520,001 533,485 563,156 547,363 −15,793
Automotive vehicles, parts, and engines 150,398 157,865 158,839 161,848 3,009
Consumer goods except food and automotive 193,258 197,168 205,471 205,689 218
Other general merchandise 54,781 54,359 56,821 61,327 4,506
Net exports of goods under merchanting 300 210 270 430 160
Nonmonetary gold 20,542 21,544 21,947 19,310 −2,637
Exports of services 758,446 798,957 826,980 845,228 18,248
Maintenance and repair services n.i.e. 25,132 26,880 30,968 32,525 1,557
Transport 84,749 88,836 92,852 91,356 −1,496
Travel (for all purposes including education) 206,650 210,655 214,680 213,482 −1,198
Insurance services 16,819 18,015 17,466 18,281 815
Financial services 99,074 109,203 112,015 111,275 −740
Charges for the use of intellectual property n.i.e. 124,387 126,523 128,748 128,932 184
Telecommunications, computer, and information services 38,245 42,001 43,196 47,813 4,617
Other business services 144,614 157,190 165,821 180,071 14,250
Government goods and services n.i.e. 18,777 19,653 21,235 21,492 257
Primary income receipts 835,509 933,307 1,084,183 1,123,101 38,918
Direct investment income 461,768 509,756 574,464 579,988 5,524
Portfolio investment income 326,315 354,464 411,171 427,643 16,472
Other investment income 40,990 62,577 91,247 107,760 16,513
Reserve asset income 108 385 632 873 241
Compensation of employees 6,329 6,125 6,668 6,835 167
Secondary income (current transfer) receipts 137,160 158,970 150,191 142,809 −7,382
Imports of goods and services and income payments (debits) 3,616,858 3,884,470 4,226,662 4,262,295 35,633
Imports of goods 2,207,195 2,358,789 2,561,667 2,519,049 −42,618
Foods, feeds, and beverages 131,010 138,811 148,364 151,597 3,233
Industrial supplies and materials 441,793 511,359 583,344 528,974 −54,370
Capital goods except automotive 593,614 642,887 695,939 681,551 −14,388
Automotive vehicles, parts, and engines 350,847 359,189 373,123 376,956 3,833
Consumer goods except food and automotive 584,900 603,580 649,096 656,165 7,069
Other general merchandise 86,876 90,759 101,237 113,186 11,949
Nonmonetary gold 18,154 12,204 10,562 10,620 58
Imports of services 511,627 543,880 567,322 595,409 28,087
Maintenance and repair services n.i.e. 8,764 8,400 8,718 8,823 105
Transport 96,982 101,756 108,202 110,116 1,914
Travel (for all purposes including education) 123,549 134,868 144,463 152,321 7,858
Insurance services 50,144 50,599 42,485 48,581 6,096
Financial services 25,710 28,957 31,298 33,670 2,372
Charges for the use of intellectual property n.i.e. 46,987 53,440 56,117 57,073 956
Telecommunications, computer, and information services 37,418 39,628 41,190 43,156 1,966
Other business services 100,570 104,185 111,874 117,566 5,692
Government goods and services n.i.e. 21,503 22,047 22,975 24,105 1,130
Primary income payments 636,855 707,508 830,198 866,105 35,907
Direct investment income 183,795 205,798 244,197 245,770 1,573
Portfolio investment income 407,603 433,561 471,795 485,233 13,438
Other investment income 26,726 49,164 94,626 114,782 20,156
Compensation of employees 18,732 18,985 19,580 20,320 740
Secondary income (current transfer) payments 261,181 274,293 267,475 281,732 14,257
Balances          
Balance on current account −428,349 −439,646 −490,978 −498,351 −7,373
Balance on goods −749,801 −805,200 −887,338 −866,244 21,094
Balance on services 246,819 255,077 259,659 249,819 −9,840
Balance on primary income 198,654 225,799 253,985 256,997 3,012
Balance on secondary income −124,022 −115,322 −117,284 −138,923 −21,639
p
Preliminary
n.i.e.
Not included elsewhere

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

Net financial-account transactions were −$395.9 billion in 2019, reflecting net U.S. borrowing from foreign residents (table G).

Financial assets

Transactions in 2019 increased U.S. residents' foreign financial assets by $426.9 billion. Transactions increased direct investment assets, mainly equity, by $197.7 billion; portfolio investment assets, resulting from large and mostly offsetting transactions in equity securities and debt securities, by $35.9 billion; other investment assets, mostly bank deposits, by $188.7 billion; and reserve assets by $4.7 billion.

Liabilities

Transactions in 2019 increased U.S. liabilities to foreign residents by $784.4 billion. Transactions increased direct investment liabilities, mostly equity, by $310.8 billion; portfolio investment liabilities, resulting from large and partly offsetting transactions in equity securities and debt securities, by $231.6 billion; and other investment liabilities, mostly bank deposits, by $242.0 billion.

Financial derivatives

Net transactions in financial derivatives were −$38.4 billion in 2019, reflecting net borrowing from foreign residents.

Table G. Capital and Financial Accounts and Statistical Discrepancy
[Millions of dollars]
  2016 2017 2018 2019 p Change 2018 to 2019
Capital account          
Capital transfer receipts and other credits 0 19,154 3,247 0 −3,247
Capital transfer payments and other debits 152 204 12 10 −2
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 353,036 1,167,447 310,827 426,912 116,085
Direct investment assets 318,317 384,574 −78,457 197,670 276,127
Equity 341,999 357,856 −151,614 207,046 358,660
Equity other than reinvestment of earnings 43,747 29,878 78,037 14,470 −63,567
Reinvestment of earnings 298,252 327,979 −229,651 192,576 422,227
Debt instruments −23,683 26,718 73,157 −9,376 −82,533
Portfolio investment assets 36,283 569,376 334,033 35,875 −298,158
Equity and investment fund shares 21,743 139,940 194,087 −250,967 −445,054
Debt securities 14,541 429,437 139,945 286,842 146,897
Short term −27,409 191,686 16,341 167,502 151,161
Long term 41,950 237,751 123,604 119,339 −4,265
Other investment assets −3,654 215,187 50,262 188,709 138,447
Currency and deposits −91,319 169,239 71,792 106,199 34,407
Loans 86,762 40,240 −22,423 81,427 103,850
Trade credit and advances 903 5,708 893 1,083 190
Reserve assets 2,090 −1,690 4,989 4,659 −330
Monetary gold 0 0 0 0 0
Special drawing rights 684 78 156 237 81
Reserve position in the International Monetary Fund 1,348 −1,812 4,824 4,271 −553
Other reserve assets 58 44 10 150 140
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 742,905 1,549,024 735,583 784,440 48,857
Direct investment liabilities 494,438 354,651 258,392 310,811 52,419
Equity 387,582 308,228 357,164 282,418 −74,746
Equity other than reinvestment of earnings 295,955 200,547 210,374 141,972 −68,402
Reinvestment of earnings 91,627 107,681 146,790 140,446 −6,344
Debt instruments 106,856 46,423 −98,773 28,393 127,166
Portfolio investment liabilities 231,349 792,523 315,676 231,617 −84,059
Equity and investment fund shares −139,700 149,633 142,396 −226,801 −369,197
Debt securities 371,049 642,889 173,280 458,418 285,138
Short term −12,092 13,565 28,099 −44,792 −72,891
Long term 383,141 629,325 145,181 503,210 358,029
Other investment liabilities 17,118 401,851 161,515 242,012 80,497
Currency and deposits 18,695 217,750 32,320 196,357 164,037
Loans −7,574 168,871 114,066 35,687 −78,379
Trade credit and advances 5,997 15,231 15,129 9,967 −5,162
Special drawing rights allocations 0 0 0 0 0
Financial derivatives other than reserves, net transactions 7,827 23,998 −20,721 −38,378 −17,657
Statistical discrepancy          
Statistical discrepancy1 46,460 63,117 42,266 102,456 60,190
Balances          
Balance on capital account −152 18,950 3,235 −10 −3,245
Net lending (+) or net borrowing (-) from current- and capital-account transactions2 −428,502 −420,696 −487,743 −498,361 −10,618
Net lending (+) or net borrowing (-) from financial-account transactions3 −382,042 −357,579 −445,477 −395,906 49,571
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.