U.S. International Transactions

Fourth Quarter and Year 2021

By Rudy Telles Jr.  |  Volume 102, Number 4  |  April 19, 2022

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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 $2.0 billion, or 0.9 percent, to $217.9 billion in the fourth quarter of 2021 (chart 1 and table A). The revised third-quarter deficit was $219.9 billion.

The deficit was 3.6 percent of current-dollar gross domestic product (GDP), down from 3.8 percent in the third quarter.

The $2.0 billion narrowing of the current-account deficit in the fourth quarter reflected a reduced deficit on secondary income and expanded surpluses on services and on primary income that were mostly offset by an expanded deficit on goods.

The U.S. current-account deficit widened by $205.5 billion, or 33.4 percent, to $821.6 billion in 2021. The deficit was 3.6 percent of current-dollar GDP, up from 2.9 percent in 2020.

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]
Series 2021 Change 2021:Q3 to 2021:Q4
Q1 r Q2 r Q3 r Q4 p
Current account          
Exports of goods and services and income receipts (credits) 895,916 933,830 958,119 1,005,864 47,745
Exports of goods and services 590,517 628,387 635,891 678,161 42,270
Goods 408,929 437,351 441,930 473,499 31,569
Services 181,588 191,036 193,960 204,662 10,702
Primary income receipts 262,893 263,965 279,724 284,207 4,483
Secondary income (current transfer) receipts 42,507 41,478 42,505 43,496 991
Imports of goods and services and income payments (debits) 1,083,446 1,130,183 1,177,991 1,223,744 45,753
Imports of goods and services 794,583 833,341 859,283 907,131 47,848
Goods 675,950 705,098 715,100 756,945 41,845
Services 118,634 128,243 144,183 150,186 6,003
Primary income payments 212,837 225,281 237,802 239,961 2,159
Secondary income (current transfer) payments 76,025 71,560 80,906 76,652 −4,254
Capital account          
Capital transfer receipts and other credits 23 8 3,813 7 −3,806
Capital transfer payments and other debits 2,765 870 809 1,851 1,042
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 406,909 244,195 448,596 113,623 −334,973
Direct investment assets 88,017 172,251 100,025 140,996 40,971
Portfolio investment assets 294,204 126,195 274,682 −90,945 −365,627
Other investment assets 26,788 −54,728 −38,714 60,559 99,273
Reserve assets −2,100 477 112,603 3,013 −109,590
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 575,402 446,846 612,132 224,377 −387,755
Direct investment liabilities 71,560 87,537 170,282 120,229 −50,053
Portfolio investment liabilities 323,752 198,105 127,777 −66,394 −194,171
Other investment liabilities 180,090 161,204 314,073 170,543 −143,530
Financial derivatives other than reserves, net transactions −2,216 −8,612 −7,980 −22,861 −14,881
Statistical discrepancy          
Statistical discrepancy1 19,563 −14,046 45,352 86,109 40,757
Balances          
Balance on current account −187,529 −196,353 −219,872 −217,880 1,992
Balance on goods and services −204,067 −204,954 −223,392 −228,970 −5,578
Balance on goods −267,021 −267,747 −273,170 −283,446 −10,276
Balance on services 62,954 62,793 49,778 54,476 4,698
Balance on primary income 50,056 38,684 41,922 44,246 2,324
Balance on secondary income −33,518 −30,083 −38,401 −33,156 5,245
Balance on capital account −2,743 −863 3,004 −1,844 −4,848
Net lending (+) or net borrowing (−) from current- and capital-account transactions2 −190,272 −197,216 −216,868 −219,724 −2,856
Net lending (+) or net borrowing (−) from financial-account transactions3 −170,709 −211,262 −171,516 −133,616 37,900
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 increased $47.7 billion to $1.01 trillion in the fourth quarter (charts 2 and 3 and table B). Imports of goods and services from, and income paid to, foreign residents increased $45.8 billion to $1.22 trillion (charts 2 and 4 and table C).

Chart 2. Current-Account Transactions

[Click chart to expand]

Trade in goods

Exports of goods increased $31.6 billion to $473.5 billion, and imports of goods increased $41.8 billion to $756.9 billion. The increases in both exports and imports reflected increases in all major categories, led by industrial supplies and materials and consumer goods.

Trade in services

Exports of services increased $10.7 billion to $204.7 billion, mostly reflecting increases in travel, primarily other personal travel, in transport, primarily air passenger transport, and in charges for the use of intellectual property, primarily licenses for the use of outcomes of research and development (such as patents and trade secrets). Imports of services increased $6.0 billion to $150.2 billion, mostly reflecting increases in transport, primarily sea freight transport, and in travel, primarily other personal travel.

Primary income

Receipts of primary income increased $4.5 billion to $284.2 billion, mainly reflecting an increase in portfolio investment income, mostly equity securities. Payments of primary income increased $2.2 billion to $240.0 billion, reflecting an increase in portfolio investment income, mostly interest on long-term debt securities, that was partly offset by a decrease in direct investment income, mainly earnings.

Secondary income

Receipts of secondary income increased $1.0 billion to $43.5 billion, mostly reflecting an increase in general government transfers, primarily fines and penalties and taxes on income and wealth. Payments of secondary income decreased $4.3 billion to $76.7 billion, mainly reflecting a decrease in general government transfers, primarily international cooperation.

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]
Series 2021 Change 2021:III to 2021:IV
I r II r III r IV p
Exports of goods and services and income receipts 895,916 933,830 958,119 1,005,864 47,745
Exports of goods 408,929 437,351 441,930 473,499 31,569
General merchandise 398,842 429,104 434,597 466,786 32,189
Foods, feeds, and beverages 41,766 41,544 38,114 43,791 5,677
Industrial supplies and materials 134,564 152,783 158,568 169,582 11,014
Energy products 52,043 63,495 68,669 78,595 9,926
Of which: Petroleum and products 40,073 51,745 53,685 61,314 7,629
Nonenergy products 82,521 89,288 89,899 90,987 1,088
Capital goods except automotive 122,395 131,881 130,933 134,574 3,641
Automotive vehicles, parts, and engines 37,175 34,637 34,144 37,647 3,503
Consumer goods except food and automotive 47,908 52,499 57,262 63,889 6,627
Other general merchandise 15,035 15,760 15,574 17,302 1,728
Net exports of goods under merchanting 253 254 277 202 −75
Nonmonetary gold 9,833 7,993 7,057 6,511 −546
Exports of services1 181,588 191,036 193,960 204,662 10,702
Manufacturing services on physical inputs owned by others n.a. n.a. n.a. n.a. n.a.
Maintenance and repair services n.i.e. 2,947 2,980 3,128 2,993 −135
Transport 14,342 15,905 16,609 18,188 1,579
Travel (for all purposes including education) 13,303 16,099 16,506 22,851 6,345
Business 2,477 2,865 3,135 4,388 1,253
Personal 10,826 13,234 13,371 18,462 5,091
Construction 651 650 792 705 −87
Insurance services 5,291 5,309 5,914 6,158 244
Financial services 39,435 40,461 41,861 42,331 470
Charges for the use of intellectual property n.i.e. 30,119 31,379 30,945 32,385 1,440
Telecommunications, computer, and information services 14,691 14,946 14,418 14,087 −331
Other business services 49,494 51,562 52,298 53,188 890
Personal, cultural, and recreational services 5,475 5,924 5,731 5,835 104
Government goods and services n.i.e. 5,841 5,822 5,759 5,943 184
Primary income receipts 262,893 263,965 279,724 284,207 4,483
Investment income 261,251 262,295 278,038 282,507 4,469
Direct investment income 150,847 149,691 156,949 156,422 −527
Income on equity 146,917 145,849 153,296 152,839 −457
Dividends and withdrawals 72,942 49,116 68,288 28,611 −39,677
Reinvested earnings 73,974 96,733 85,008 124,228 39,220
Interest 3,931 3,842 3,653 3,583 −70
Portfolio investment income 95,851 98,342 106,669 111,873 5,204
Income on equity and investment fund shares 62,311 64,876 71,230 74,850 3,620
Interest on debt securities 33,540 33,466 35,439 37,023 1,584
Other investment income 14,487 14,215 14,650 14,178 −472
Reserve asset income 65 47 −231 35 266
Compensation of employees 1,642 1,669 1,686 1,701 15
Secondary income (current transfer) receipts2 42,507 41,478 42,505 43,496 991
p
Preliminary
r
Revised
n.a.
Not available
n.i.e.
Not included elsewhere
  1. See also International Services table 2.1.
  2. Secondary income (current transfer) 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 International Transactions Accounts 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]
Series 2021 Change 2021:III to 2021:IV
I r II r III r IV p
Imports of goods and services and income payments 1,083,446 1,130,183 1,177,991 1,223,744 45,753
Imports of goods 675,950 705,098 715,100 756,945 41,845
General merchandise 669,073 698,531 709,794 749,949 40,155
Foods, feeds, and beverages 41,237 46,217 47,475 48,372 897
Industrial supplies and materials 136,164 156,697 169,230 178,671 9,441
Energy products 46,957 56,690 63,352 68,071 4,719
Of which: Petroleum and products 42,865 52,384 57,815 62,630 4,815
Nonenergy products 89,207 100,007 105,878 110,600 4,722
Capital goods except automotive 183,709 190,595 192,816 199,183 6,367
Automotive vehicles, parts, and engines 90,561 87,133 83,537 86,992 3,455
Consumer goods except food and automotive 189,883 189,261 185,923 202,496 16,573
Other general merchandise 27,519 28,629 30,812 34,234 3,422
Nonmonetary gold 6,877 6,568 5,307 6,996 1,689
Imports of services1 118,634 128,243 144,183 150,186 6,003
Manufacturing services on physical inputs owned by others n.a. n.a. n.a. n.a. n.a.
Maintenance and repair services n.i.e. 1,931 1,978 1,888 1,717 −171
Transport 19,866 24,600 28,765 31,576 2,811
Travel (for all purposes including education) 7,861 11,939 17,828 20,313 2,485
Business 1,132 1,659 2,423 2,912 489
Personal 6,729 10,280 15,404 17,401 1,997
Construction 334 304 284 340 56
Insurance services 14,059 13,934 14,718 14,947 229
Financial services 10,499 10,644 11,756 12,066 310
Charges for the use of intellectual property n.i.e. 11,782 11,000 12,530 11,537 −993
Telecommunications, computer, and information services 9,979 10,136 10,208 11,035 827
Other business services 29,682 30,591 33,158 33,349 191
Personal, cultural, and recreational services 6,416 6,800 6,722 7,014 292
Government goods and services n.i.e. 6,225 6,317 6,325 6,293 −32
Primary income payments 212,837 225,281 237,802 239,961 2,159
Investment income 208,993 221,454 233,641 235,899 2,258
Direct investment income 64,203 77,261 82,508 80,350 −2,158
Portfolio investment income 127,727 127,413 133,039 137,527 4,488
Income on equity and investment fund shares 46,463 45,731 47,212 48,333 1,121
Interest on debt securities 81,264 81,682 85,827 89,194 3,367
Other investment income 17,063 16,779 18,093 18,022 −71
Compensation of employees 3,845 3,827 4,161 4,062 −99
Secondary income (current transfer) payments2 76,025 71,560 80,906 76,652 −4,254
           
Supplemental detail on insurance transactions:          
Premiums paid 36,533 35,884 38,416 39,099 683
Losses recovered 25,266 25,549 29,427 25,670 −3,757
p
Preliminary
r
Revised
n.a.
Not available
n.i.e.
Not included elsewhere
  1. See also International Services table 2.1.
  2. Secondary income (current transfer) 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 International Transactions Accounts table 1.2, table 2.1, table 3.1, table 4.1, and table 5.1 on BEA's website.

Capital-transfer receipts decreased $3.8 billion to $7 million in the fourth quarter (table A). Third-quarter transactions reflected receipts from foreign insurance companies for losses resulting from Hurricane Ida. Capital-transfer payments increased $1.0 billion to $1.9 billion in the fourth quarter, reflecting an increase in U.S. government investment grants.

Net financial-account transactions were −$133.6 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 $113.6 billion (charts 5 and 6 and table D). Transactions increased direct investment assets, primarily equity, by $141.0 billion; other investment assets, mostly deposits, by $60.6 billion; and reserve assets by $3.0 billion. Transactions decreased portfolio investment assets by $90.9 billion, resulting from large and partly offsetting transactions in equity and debt securities.

Liabilities

Fourth-quarter transactions increased U.S. liabilities to foreign residents by $224.4 billion. Transactions increased other investment liabilities, mainly loans, by $170.5 billion, and direct investment liabilities, mostly equity, by $120.2 billion. Transactions decreased portfolio investment liabilities by $66.4 billion, resulting from large and partly offsetting transactions in equity and debt securities.

Financial derivatives

Net transactions in financial derivatives were −$22.9 billion in the fourth quarter, reflecting net U.S. 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]
Series 2021 Change 2021:III to 2021: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 (+)) 406,909 244,195 448,596 113,623 −334,973
Direct investment assets 88,017 172,251 100,025 140,996 40,971
Equity 87,993 130,324 86,886 155,310 68,424
Equity other than reinvestment of earnings 14,019 33,591 1,878 31,082 29,204
Reinvestment of earnings 73,974 96,733 85,008 124,228 39,220
Debt instruments 24 41,927 13,139 −14,314 −27,453
Portfolio investment assets 294,204 126,195 274,682 −90,945 −365,627
Equity and investment fund shares 83,024 121,169 115,393 −165,712 −281,105
Debt securities 211,180 5,026 159,288 74,767 −84,521
Short-term securities 39,856 23,031 22,030 −41,217 −63,247
Long-term corporate securities 123,792 −14,936 104,145 83,366 −20,779
Other long-term securities 47,532 −3,069 33,113 32,618 −495
Other investment assets 26,788 −54,728 −38,714 60,559 99,273
Other equity 1,169 0 37 0 −37
Currency and deposits −1,588 −82,679 −36,605 45,589 82,194
Loans 23,323 31,031 −1,627 13,402 15,029
Trade credit and advances 3,884 −3,081 −518 1,569 2,087
Reserve assets −2,100 477 112,603 3,013 −109,590
Monetary gold 0 0 0 0 0
Special drawing rights 8 4 112,838 835 −112,003
Reserve position in the International Monetary Fund −2,157 437 11 2,169 2,158
Other reserve assets 50 36 −247 9 256
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 575,402 446,846 612,132 224,377 −387,755
Direct investment liabilities 71,560 87,537 170,282 120,229 −50,053
Equity 73,195 88,901 119,716 110,944 −8,772
Equity other than reinvestment of earnings 30,740 36,088 61,564 49,614 −11,950
Reinvestment of earnings 42,455 52,813 58,152 61,330 3,178
Debt instruments −1,635 −1,364 50,566 9,285 −41,281
Portfolio investment liabilities 323,752 198,105 127,777 −66,394 −194,171
Equity and investment fund shares 96,969 67,936 131,827 −305,215 −437,042
Debt securities 226,783 130,169 −4,050 238,821 242,871
Short term −44,402 −39,330 7,434 50,210 42,776
Treasury bills and certificates −60,815 −52,145 −2,765 59,028 61,793
Federally sponsored agency securities −3,419 −1,352 954 309 −645
Other short-term securities 19,832 14,167 9,245 −9,127 −18,372
Long term 271,186 169,499 −11,485 188,611 200,096
Treasury bonds and notes 223,025 158,132 79,256 140,349 61,093
Federally sponsored agency securities −24,416 −12,749 −24,384 16,906 41,290
Corporate bonds and notes 70,063 20,678 −65,693 30,700 96,393
Other 2,514 3,438 −664 656 1,320
Other investment liabilities 180,090 161,204 314,073 170,543 −143,530
Other equity n.a. n.a. n.a. n.a. n.a
Currency 10,092 12,650 7,321 18,284 10,963
Deposits 83,801 45,406 166,392 −30,756 −197,148
Loans 81,318 100,168 25,189 173,885 148,696
Trade credit and advances 4,878 2,980 2,336 9,129 6,793
Special drawing rights allocations 0 0 112,834 0 −112,834
p
Preliminary
r
Revised

Note. The statistics are presented in International Transactions Accounts table 1.2, table 2.1, table 3.1, table 4.1, and table 5.1 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 2021 have been updated to align the seasonally adjusted statistics with annual totals.

Table E. Updates to the Third-Quarter 2021 International Transactions Aggregates
[Millions of dollars, seasonally adjusted]
Series Preliminary Estimates Revised Estimates
Balance on current account −214,774 −219,872
Balance on goods −274,827 −273,170
Balance on services 49,863 49,778
Balance on primary income 48,162 41,922
Balance on secondary income (current transfers) −37,972 −38,401
Net lending or borrowing from financial-account transactions −127,213 −171,516
Net U.S. acquisition of financial assets 494,066 448,596
Net U.S. incurrence of liabilities 613,299 612,132
Financial derivatives other than reserves, net transactions −7,980 −7,980

The $205.5 billion widening of the current-account deficit in 2021 primarily reflected an expanded 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 $535.1 billion to $3.79 trillion in 2021. Imports of goods and services from, and income paid to, foreign residents increased $740.6 billion to $4.62 trillion (charts 8 and 9 and table F).

Trade in goods

Exports of goods increased $332.9 billion to $1.76 trillion, and imports of goods increased $502.3 billion to $2.85 trillion. The increases in both exports and imports reflected increases in all major categories, led by industrial supplies and materials, mainly petroleum and products.

Trade in services

Exports of services increased $65.6 billion to $771.2 billion, mainly reflecting increases in other business services, mostly professional and management consulting services, in financial services, mostly financial management services and credit card and other credit-related services, and in charges for the use of intellectual property, mostly licenses for the use of outcomes of research and development. Imports of services increased $80.9 billion to $541.2 billion, mainly reflecting increases in transport, mostly sea freight transport, and in travel, mostly other personal travel.

Primary income

Receipts of primary income increased $132.9 billion to $1.09 trillion, and payments of primary income increased $146.5 billion to $915.9 billion. The increases in both receipts and payments mostly reflected an increase in direct investment income, primarily earnings.

Secondary income

Receipts of secondary income increased $3.6 billion to $170.0 billion, reflecting an increase in general government transfers, mostly taxes on income. Payments of secondary income increased $10.9 billion to $305.1 billion, reflecting increases in general government transfers, primarily international cooperation, and in private transfers, led by 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]
Series 2018 2019 2020 2021 p Change 2020 to 2021
Current account          
Exports of goods and services and income receipts (credits) 3,793,642 3,812,458 3,258,642 3,793,730 535,088
Exports of goods 1,676,913 1,652,072 1,428,798 1,761,709 332,911
Foods, feeds, and beverages 133,144 130,993 139,335 165,216 25,881
Industrial supplies and materials 536,866 526,410 450,372 615,497 165,125
Capital goods except automotive 563,438 547,954 460,493 519,783 59,290
Automotive vehicles, parts, and engines 158,833 162,752 127,918 143,603 15,685
Consumer goods except food and automotive 205,513 204,976 173,974 221,557 47,583
Other general merchandise 56,835 59,146 51,693 63,671 11,978
Net exports of goods under merchanting 338 491 984 986 2
Nonmonetary gold 21,947 19,351 24,030 31,395 7,365
Exports of services 861,725 876,295 705,643 771,247 65,604
Manufacturing services on physical inputs owned by others n.a. n.a. n.a. n.a. n.a.
Maintenance and repair services n.i.e. 28,036 27,698 13,278 12,048 −1,230
Transport 93,107 91,017 56,706 65,044 8,338
Travel (for all purposes including education) 200,724 199,364 72,813 68,759 −4,054
Construction 2,842 3,127 2,349 2,797 448
Insurance services 19,118 18,528 20,431 22,672 2,241
Financial services 132,448 136,046 144,343 164,088 19,745
Charges for the use of intellectual property n.i.e. 114,819 115,529 113,779 124,827 11,048
Telecommunications, computer, and information services 49,245 54,766 56,682 58,142 1,460
Other business services 176,540 185,573 183,180 206,542 23,362
Personal, cultural, and recreational services 22,715 22,193 20,442 22,965 2,523
Government goods and services n.i.e. 22,131 22,453 21,642 23,364 1,722
Primary income receipts 1,106,417 1,124,929 957,857 1,090,789 132,932
Direct investment income 585,260 569,102 495,722 613,910 118,188
Portfolio investment income 412,496 424,433 383,260 412,735 29,475
Other investment income 101,088 123,357 72,123 57,530 −14,593
Reserve asset income 632 873 255 −84 −339
Compensation of employees 6,941 7,163 6,497 6,698 201
Secondary income (current transfer) receipts 148,587 159,162 166,344 169,986 3,642
Imports of goods and services and income payments (debits) 4,231,878 4,284,604 3,874,737 4,615,364 740,627
Imports of goods 2,555,662 2,513,587 2,350,825 2,853,093 502,268
Foods, feeds, and beverages 148,257 151,559 155,449 183,301 27,852
Industrial supplies and materials 580,206 525,562 430,058 640,761 210,703
Capital goods except automotive 694,229 679,126 648,503 766,303 117,800
Automotive vehicles, parts, and engines 372,009 376,016 311,305 348,223 36,918
Consumer goods except food and automotive 647,659 655,517 641,055 767,563 126,508
Other general merchandise 102,104 113,855 102,790 121,194 18,404
Nonmonetary gold 11,197 11,952 61,665 25,747 −35,918
Imports of services 563,926 591,121 460,301 541,245 80,944
Manufacturing services on physical inputs owned by others n.a. n.a. n.a. n.a. n.a.
Maintenance and repair services n.i.e. 7,354 8,866 6,090 7,514 1,424
Transport 110,441 112,798 72,411 104,806 32,395
Travel (for all purposes including education) 126,139 133,285 35,808 57,940 22,132
Construction 3,077 1,377 1,131 1,262 131
Insurance services 43,797 51,632 55,617 57,658 2,041
Financial services 39,445 41,210 42,256 44,966 2,710
Charges for the use of intellectual property n.i.e. 42,736 41,730 42,984 46,849 3,865
Telecommunications, computer, and information services 41,701 42,961 38,594 41,358 2,764
Other business services 107,435 112,776 117,673 126,780 9,107
Personal, cultural, and recreational services 18,825 20,486 23,185 26,952 3,767
Government goods and services n.i.e. 22,975 24,000 24,553 25,160 607
Primary income payments 847,286 893,009 769,397 915,881 146,484
Direct investment income 235,306 232,877 179,196 304,322 125,126
Portfolio investment income 488,208 506,767 489,189 525,707 36,518
Other investment income 106,548 134,460 86,582 69,957 −16,625
Compensation of employees 17,223 18,904 14,429 15,895 1,466
Secondary income (current transfer) payments 265,004 286,887 294,215 305,144 10,929
Balances         0
Balance on current account −438,236 −472,146 −616,095 −821,634 −205,539
Balance on goods −878,749 −861,515 −922,026 −1,091,384 −169,358
Balance on services 297,799 285,174 245,342 230,001 −15,341
Balance on primary income 259,131 231,920 188,460 174,907 −13,553
Balance on secondary income −116,417 −127,725 −127,871 −135,158 −7,287
p
Preliminary
n.a.
Not available
n.i.e.
Not included elsewhere

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

Net financial-account transactions were −$687.1 billion in 2021, reflecting net U.S. borrowing from foreign residents (table G).

Financial assets

Transactions in 2021 increased U.S. residents' foreign financial assets by $1.21 trillion. Transactions increased portfolio investment assets, mostly long-term debt securities, by $604.1 billion; direct investment assets, mostly equity, by $501.3 billion; and reserve assets, primarily special drawing rights (SDRs), by $114.0 billion. Transactions decreased other investment assets by $6.1 billion, resulting from large and mostly offsetting transactions in deposits and loans. The increase in SDRs reflects the U.S. share of the $650 billion SDR allocation that was approved by the Board of Governors of the International Monetary Fund (IMF) in the third quarter. The SDR is an international reserve asset created by the IMF to supplement its member countries' official reserves; it can be exchanged between members for currencies, such as the U.S. dollar, the euro, or the yen.

Liabilities

Transactions in 2021 increased U.S. liabilities to foreign residents by $1.86 trillion. Transactions increased other investment liabilities, mostly loans and deposits, by $825.9 billion; portfolio investment liabilities, mainly long-term debt securities, by $583.2 billion; and direct investment liabilities, mostly equity, by $449.6 billion.

Financial derivatives

Net transactions in financial derivatives were −$41.7 billion in 2021, reflecting net U.S. borrowing from foreign residents.

Table G. Capital and Financial Accounts and Statistical Discrepancy
[Millions of dollars]
Series 2018 2019 2020 2021 p Change 2020 to 2021
Capital account          
Capital transfer receipts and other credits 3,281 72 371 3,850 3,479
Capital transfer payments and other debits 7,541 6,515 5,859 6,296 437
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 383,815 317,017 809,323 1,213,323 404,000
Direct investment assets −130,015 122,191 311,692 501,289 189,597
Equity −218,628 156,684 330,871 460,513 129,642
Equity other than reinvestment of earnings 75,309 17,667 134,796 80,570 −54,226
Reinvestment of earnings −293,937 139,017 196,076 379,943 183,867
Debt instruments 88,613 −34,494 −19,180 40,776 59,956
Portfolio investment assets 335,263 −13,479 220,026 604,136 384,110
Equity and investment fund shares 171,300 −163,363 241,787 153,875 −87,912
Debt securities 163,962 149,885 −21,762 450,261 472,023
Short term 14,298 135,578 −53,805 43,701 97,506
Long term 149,665 14,307 32,043 406,560 374,517
Other investment assets 173,578 203,647 268,632 −6,095 −274,727
Currency and deposits 106,125 132,391 92,893 −75,284 −168,177
Loans 64,945 68,722 182,202 66,129 −116,073
Trade credit and advances 1,179 1,166 −8,311 1,854 10,165
Reserve assets 4,989 4,659 8,974 113,993 105,019
Monetary gold 0 0 0 0 0
Special drawing rights 156 237 81 113,685 113,604
Reserve position in the International Monetary Fund 4,824 4,271 8,814 460 −8,354
Other reserve assets 10 150 78 −153 −231
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 711,777 755,724 1,456,528 1,858,757 402,229
Direct investment liabilities 214,315 302,200 211,298 449,608 238,310
Equity 318,545 262,483 198,291 392,755 194,464
Equity other than reinvestment of earnings 200,122 137,758 115,798 178,006 62,208
Reinvestment of earnings 118,423 124,725 82,493 214,750 132,257
Debt instruments −104,230 39,717 13,007 56,853 43,846
Portfolio investment liabilities 303,075 177,157 710,151 583,239 −126,912
Equity and investment fund shares 156,916 −244,098 648,399 −8,483 −656,882
Debt securities 146,159 421,255 61,752 591,722 529,970
Short term 30,353 −33,144 272,452 −26,088 −298,540
Long term 115,806 454,399 −210,700 617,811 828,511
Other investment liabilities 194,387 276,368 535,079 825,909 290,830
Currency and deposits 12,656 204,250 323,595 313,191 −10,404
Loans 165,787 62,052 198,920 380,561 181,641
Trade credit and advances 15,943 10,066 12,564 19,324 6,760
Special drawing rights allocations 0 0 0 112,834 112,834
Financial derivatives other than reserves, net transactions −20,404 −41,670 −5,780 −41,669 −35,889
Statistical discrepancy          
Statistical discrepancy1 94,131 −1,788 −31,403 136,977 168,380
Balances          
Balance on capital account −4,261 −6,443 −5,487 −2,446 3,041
Net lending (+) or net borrowing (−) from current- and capital-account transactions2 −442,497 −478,589 −621,582 −824,080 −202,498
Net lending (+) or net borrowing (−) from financial-account transactions3 −348,366 −480,377 −652,985 −687,103 −34,118
p
Preliminary
r
Revised
n.a.
Not available
  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 F) and capital-account balance.

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