A Look at the U.S. International Transactions

Fourth Quarter and Year 2022

By Elliot Berg  |  April 11, 2023

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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 $12.2 billion, or 5.6 percent, to $206.8 billion in the fourth quarter of 2022 (chart 1 and table A). The revised third-quarter deficit was $219.0 billion.

The fourth-quarter deficit was 3.2 percent of current-dollar gross domestic product (GDP), down from 3.4 percent in the third quarter.

The $12.2 billion narrowing of the current-account deficit in the fourth quarter primarily reflected a reduced deficit on secondary income. Also contributing was an expanded surplus on services.

The U.S. current-account deficit widened by $97.4 billion, or 11.5 percent, to $943.8 billion in 2022 (chart 7 and table F). The deficit was 3.7 percent of current-dollar GDP, up from 3.6 percent in 2021.

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

[View larger chart]
Table A. U.S. International Transactions
[Millions of dollars, seasonally adjusted]
Series 2022 Change 2022:Q3 to 2022:Q4
Q1 r Q2 r Q3 r Q4 p
Current account          
Exports of goods and services and income receipts (credits) 1,023,868 1,110,155 1,138,312 1,137,202 −1,110
Exports of goods and services 703,589 767,882 782,688 757,697 −24,991
Goods 486,575 538,468 545,943 514,862 −31,081
Services 217,014 229,413 236,745 242,835 6,090
Primary income receipts 278,008 298,701 312,570 328,199 15,629
Secondary income (current transfer) receipts 42,271 43,572 43,054 51,306 8,252
Imports of goods and services and income payments (debits) 1,304,650 1,347,362 1,357,313 1,344,007 −13,306
Imports of goods and services 984,732 1,020,076 989,652 962,713 −26,939
Goods 826,666 847,759 815,238 787,213 −28,025
Services 158,066 172,317 174,415 175,500 1,085
Primary income payments 239,071 241,408 270,759 288,869 18,110
Secondary income (current transfer) payments 80,847 85,878 96,902 92,425 −4,477
Capital account          
Capital transfer receipts and other credits 28 6 9,078 8 −9,070
Capital transfer payments and other debits 1,916 3,821 3,880 4,143 263
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 427,010 418,373 338,994 −264,613 −603,607
Direct investment assets 146,434 108,144 81,469 99,783 18,314
Portfolio investment assets 227,966 276,714 275,495 −342,363 −617,858
Other investment assets 51,678 32,334 −18,767 −24,937 −6,170
Reserve assets 932 1,181 797 2,903 2,106
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 656,262 516,335 487,283 −144,083 −631,366
Direct investment liabilities 125,860 71,089 114,080 40,536 −73,544
Portfolio investment liabilities 246,077 443,379 240,849 −173,515 −414,364
Other investment liabilities 284,325 1,867 132,354 −11,104 −143,458
Financial derivatives other than reserves, net transactions 5,762 −45,911 −33,940 −6,949 26,991
Statistical discrepancy          
Statistical discrepancy1 59,180 97,149 31,575 83,462 51,887
Balances          
Balance on current account −280,782 −237,207 −219,002 −206,805 12,197
Balance on goods and services −281,143 −252,195 −206,964 −205,017 1,947
Balance on goods −340,092 −309,291 −269,295 −272,351 −3,056
Balance on services 58,948 57,096 62,331 67,334 5,003
Balance on primary income 38,937 57,293 41,811 39,330 −2,481
Balance on secondary income −38,576 −42,305 −53,848 −41,119 12,729
Balance on capital account −1,888 −3,815 5,197 −4,135 −9,332
Net lending (+) or net borrowing (−) from current- and capital-account transactions2 −282,670 −241,022 −213,804 −210,940 2,864
Net lending (+) or net borrowing (−) from financial-account transactions3 −223,490 −143,873 −182,229 −127,479 54,750
p
Preliminary
r
Revised

Table Footnotes

  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 of the International Transactions Accounts interactive data application on the BEA website.

Exports of goods and services to, and income received from, foreign residents decreased $1.1 billion to $1.14 trillion in the fourth quarter (charts 2 and 3 and tables A and B). Imports of goods and services from, and income paid to, foreign residents decreased $13.3 billion to $1.34 trillion (charts 2 and 4 and tables A and C).1

Chart 2. Current-Account Transactions

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Trade in goods

Exports of goods decreased $31.1 billion to $514.9 billion, reflecting decreases in industrial supplies and materials, mainly petroleum and products and natural gas, and in nonmonetary gold. Imports of goods decreased $28.0 billion to $787.2 billion, reflecting decreases in industrial supplies and materials, mainly petroleum and products, and in consumer goods, mainly other household goods, including cell phones (durable goods) and apparel, footwear, and household goods (nondurable goods).

Trade in services

Exports of services increased $6.1 billion to $242.8 billion, reflecting increases in travel, mostly other personal travel, in financial services, mostly financial intermediation services and credit card and other credit-related services, and in transport, mainly air passenger transport. Imports of services increased $1.1 billion to $175.5 billion, reflecting an increase in travel, mostly other personal travel, that was partly offset by a decrease in transport, primarily sea freight transport.

Primary income

Receipts of primary income increased $15.6 billion to $328.2 billion, and payments of primary income increased $18.1 billion to $288.9 billion. The increases in both receipts and payments primarily reflected increases in other investment income, mostly interest on loans and deposits. These increases were mainly due to higher short-term interest rates amid tightening of U.S. and foreign monetary policy.

Secondary income

Receipts of secondary income increased $8.3 billion to $51.3 billion, reflecting an increase in general government transfers, mainly fines and penalties. Payments of secondary income decreased $4.5 billion to $92.4 billion, reflecting a decrease in general government transfers, mostly international cooperation.

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

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

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Table B. Exports of Goods and Services and Income Receipts
[Millions of dollars, seasonally adjusted]
Series 2022 Change 2022:Q3 to 2022:Q4
Q1 r Q2 r Q3 r Q4 p
Exports of goods and services and income receipts 1,023,868 1,110,155 1,138,312 1,137,202 −1,110
Exports of goods 486,575 538,468 545,943 514,862 −31,081
General merchandise 480,403 528,853 530,155 504,865 −25,290
Foods, feeds, and beverages 43,951 49,935 44,514 41,681 −2,833
Industrial supplies and materials 183,562 217,526 213,918 193,796 −20,122
Energy products 86,558 116,084 114,018 99,563 −14,455
Of which: Petroleum and products 70,865 90,526 86,249 78,854 −7,395
Nonenergy products 97,004 101,442 99,900 94,233 −5,667
Capital goods except automotive 138,534 140,692 146,195 146,524 329
Automotive vehicles, parts, and engines 37,463 39,170 39,665 42,060 2,395
Consumer goods except food and automotive 59,441 62,822 63,258 59,632 −3,626
Other general merchandise 17,451 18,708 22,606 21,172 −1,434
Net exports of goods under merchanting 245 166 248 171 −77
Nonmonetary gold 5,928 9,449 15,540 9,825 −5,715
Exports of services1 217,014 229,413 236,745 242,835 6,090
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. 3,220 3,622 3,735 3,819 84
Transport 20,040 23,040 23,140 24,597 1,457
Travel (for all purposes including education) 25,650 34,025 36,306 39,234 2,928
Business 5,019 6,652 6,983 7,722 739
Personal 20,631 27,373 29,323 31,512 2,189
Construction 410 492 418 452 34
Insurance services 5,181 5,442 5,608 5,600 −8
Financial services 41,528 41,378 42,918 44,592 1,674
Charges for the use of intellectual property n.i.e. 31,567 31,799 30,890 31,416 526
Telecommunications, computer, and information services 16,259 17,033 17,030 17,293 263
Other business services 59,220 58,784 61,388 61,254 −134
Personal, cultural, and recreational services 6,020 7,224 6,659 6,059 −600
Government goods and services n.i.e. 7,919 6,575 8,655 8,519 −136
Primary income receipts 278,008 298,701 312,570 328,199 15,629
Investment income 276,251 296,935 310,798 326,416 15,618
Direct investment income 146,513 157,984 159,810 162,198 2,388
Income on equity 143,098 154,252 155,623 156,969 1,346
Dividends and withdrawals 79,625 75,675 79,908 49,968 −29,940
Reinvested earnings 63,473 78,577 75,715 107,002 31,287
Interest 3,416 3,732 4,187 5,228 1,041
Portfolio investment income 115,345 120,339 120,394 120,895 501
Income on equity and investment fund shares 76,776 79,468 76,853 77,316 463
Interest on debt securities 38,569 40,871 43,541 43,579 38
Other investment income 14,310 18,339 29,992 42,115 12,123
Reserve asset income 83 273 601 1,208 607
Compensation of employees 1,758 1,766 1,772 1,783 11
Secondary income (current transfer) receipts2 42,271 43,572 43,054 51,306 8,252
p
Preliminary
r
Revised
n.a.
Not available
n.i.e.
Not included elsewhere

Table Footnotes

  1. See also International Services table 2.1 on the BEA website.
  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 tables 1.2, 2.1, 3.1, 4.1, and 5.1 of the International Transactions Accounts interactive data application on the BEA website.

Table C. Imports of Goods and Services and Income Payments
[Millions of dollars, seasonally adjusted]
Series 2022 Change 2022:Q3 to 2022:Q4
Q1 r Q2 r Q3 r Q4 p
Imports of goods and services and income payments 1,304,650 1,347,362 1,357,313 1,344,007 −13,306
Imports of goods 826,666 847,759 815,238 787,213 −28,025
General merchandise 815,260 841,836 811,301 782,348 −28,953
Foods, feeds, and beverages 51,913 54,541 51,721 51,323 −398
Industrial supplies and materials 197,106 217,429 206,034 188,838 −17,196
Energy products 78,434 93,828 90,463 79,271 −11,192
Of which: Petroleum and products 71,317 85,503 81,579 71,357 −10,222
Nonenergy products 118,672 123,601 115,571 109,567 −6,004
Capital goods except automotive 214,633 216,259 220,525 218,747 −1,778
Automotive vehicles, parts, and engines 94,762 99,374 102,692 103,267 575
Consumer goods except food and automotive 225,854 224,636 203,044 189,932 −13,112
Other general merchandise 30,993 29,598 27,286 30,241 2,955
Nonmonetary gold 11,406 5,923 3,937 4,865 928
Imports of services1 158,066 172,317 174,415 175,500 1,085
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. 2,010 2,155 2,079 2,117 38
Transport 35,705 41,666 39,824 37,741 −2,083
Travel (for all purposes including education) 20,636 29,124 31,041 34,112 3,071
Business 1,968 3,318 3,354 3,936 582
Personal 18,668 25,806 27,687 30,176 2,489
Construction 359 416 356 337 −19
Insurance services 13,807 14,323 15,326 15,598 272
Financial services 12,643 12,675 14,338 14,999 661
Charges for the use of intellectual property n.i.e. 14,362 11,718 10,914 11,488 574
Telecommunications, computer, and information services 11,684 11,991 11,763 11,280 −483
Other business services 33,456 34,341 35,217 33,993 −1,224
Personal, cultural, and recreational services 7,079 7,534 7,257 7,488 231
Government goods and services n.i.e. 6,325 6,374 6,298 6,348 50
Primary income payments 239,071 241,408 270,759 288,869 18,110
Investment income 233,870 236,166 265,565 283,635 18,070
Direct investment income 75,072 67,721 76,818 73,915 −2,903
Portfolio investment income 141,233 144,987 150,374 155,112 4,738
Income on equity and investment fund shares 52,088 51,919 50,045 49,665 −380
Interest on debt securities 89,145 93,068 100,328 105,448 5,120
Other investment income 17,565 23,457 38,374 54,608 16,234
Compensation of employees 5,201 5,242 5,193 5,234 41
Secondary income (current transfer) payments2 80,847 85,878 96,902 92,425 −4,477
Supplemental detail on insurance transactions:          
Premiums paid 36,019 38,081 41,283 42,007 724
Losses recovered 25,088 25,004 33,804 24,507 −9,297
p
Preliminary
r
Revised
n.a.
Not available
n.i.e.
Not included elsewhere

Table Footnotes

  1. See also International Services table 2.1 on the BEA website.
  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 tables 1.2, 2.1, 3.1, 4.1, and 5.1 of the International Transactions Accounts interactive data application on the BEA website.

Capital-transfer receipts decreased $9.1 billion to $8 million in the fourth quarter (table A). Third-quarter transactions reflected receipts from foreign insurance companies for losses resulting from Hurricane Ian. Capital-transfer payments increased $0.3 billion to $4.1 billion, reflecting an increase in infrastructure grants.

Net financial-account transactions were −$127.5 billion in the fourth quarter, reflecting net U.S. borrowing from foreign residents (table A).

Financial assets

Fourth-quarter transactions decreased U.S. residents' foreign financial assets by $264.6 billion (charts 5 and 6 and table D). Transactions decreased portfolio investment assets, mostly equity, by $342.4 billion and other investment assets by $24.9 billion, as transactions increased loans and decreased deposits. Transactions increased direct investment assets, mainly equity, by $99.8 billion and reserve assets by $2.9 billion.

Liabilities

Fourth-quarter transactions decreased U.S. liabilities to foreign residents by $144.1 billion. Transactions decreased portfolio investment liabilities, primarily equity securities, by $173.5 billion and other investment liabilities, primarily deposits, by $11.1 billion. Transactions increased direct investment liabilities, mainly equity, by $40.5 billion.

Financial derivatives

Net transactions in financial derivatives were −$6.9 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

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

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Table D. Net U.S. Acquisition of Financial Assets and Net U.S. Incurrence of Liabilities
[Millions of dollars, seasonally adjusted]
Series 2022 Change 2022:Q3 to 2022:Q4
Q1 r Q2 r Q3 r Q4 p
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 427,010 418,373 338,994 −264,613 −603,607
Direct investment assets 146,434 108,144 81,469 99,783 18,314
Equity 138,661 91,084 98,550 105,750 7,200
Equity other than reinvestment of earnings 75,189 12,508 22,835 −1,252 −24,087
Reinvestment of earnings 63,473 78,577 75,715 107,002 31,287
Debt instruments 7,773 17,060 −17,081 −5,967 11,114
Portfolio investment assets 227,966 276,714 275,495 −342,363 −617,858
Equity and investment fund shares 113,208 238,719 158,840 −276,308 −435,148
Debt securities 114,759 37,995 116,655 −66,055 −182,710
Short-term securities −60,384 −32,045 27,235 −5,797 −33,032
Long-term corporate securities 132,144 53,657 66,721 −46,277 −112,998
Other long-term securities 42,999 16,383 22,699 −13,981 −36,680
Other investment assets 51,678 32,334 −18,767 −24,937 −6,170
Other equity 0 0 335 165 −170
Currency and deposits 29,188 15,681 77,749 41,123 −36,626
Loans 28,703 16,406 −97,935 −64,314 33,621
Trade credit and advances −6,213 248 1,083 −1,911 −2,994
Reserve assets 932 1,181 797 2,903 2,106
Monetary gold 0 0 0 0 0
Special drawing rights 1,517 1,521 704 1,223 519
Reserve position in the International Monetary Fund −596 −366 131 1,652 1,521
Other reserve assets 11 26 −38 29 67
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 656,262 516,335 487,283 −144,083 −631,366
Direct investment liabilities 125,860 71,089 114,080 40,536 −73,544
Equity 74,449 75,387 88,389 67,243 −21,146
Equity other than reinvestment of earnings 24,310 29,731 36,728 19,625 −17,103
Reinvestment of earnings 50,139 45,656 51,661 47,618 −4,043
Debt instruments 51,411 −4,298 25,691 −26,707 −52,398
Portfolio investment liabilities 246,077 443,379 240,849 −173,515 −414,364
Equity and investment fund shares −130,365 274,100 6,292 −311,465 −317,757
Debt securities 376,442 169,279 234,557 137,950 −96,607
Short-term securities 76,997 −105,120 43,228 43,927 699
Treasury bills and certificates 20,988 −113,904 25,116 30,378 5,262
Federally sponsored agency securities 248 3,058 3,596 3,719 123
Other short-term securities 55,761 5,726 14,516 9,830 −4,686
Long-term securities 299,445 274,399 191,330 94,023 −97,307
Treasury bonds and notes 193,165 147,077 111,044 −37,917 −148,961
Federally sponsored agency securities −12,649 98,308 47,235 106,059 58,824
Corporate bonds and notes 112,061 25,684 31,717 26,280 −5,437
Other long-term securities 6,868 3,330 1,334 −399 −1,733
Other investment liabilities 284,325 1,867 132,354 −11,104 −143,458
Other equity n.a. n.a. n.a. n.a. n.a.
Currency 113,793 10,527 29,521 −10,881 −40,402
Deposits 168,218 −15,701 98,887 −3,659 −102,546
Loans n.a. n.a. n.a. n.a. n.a
Trade credit and advances 2,314 7,041 3,945 3,435 −510
Special drawing rights allocations 0 0 0 0 0
p
Preliminary
r
Revised
n.a.
Not available

Note. The statistics are presented in tables 1.2, 6.1, 7.1, and 8.1 of the International Transactions Accounts interactive data application on the BEA website.

In addition to revisions to source data for the third quarter of 2022, seasonally adjusted statistics for the first, second, and third quarters of 2022 were revised to force the sum of seasonally adjusted quarters to equal the annual totals (table E). This forcing procedure was also incorporated into the fourth quarter of 2022.

Table E. Updates to Third-Quarter 2022 International Transactions Aggregates
[Millions of dollars, seasonally adjusted]
Series Preliminary estimates Revised estimates
Balance on current account −217,106 −219,002
Balance on goods −271,139 −269,295
Balance on services 60,542 62,331
Balance on primary income 45,621 41,811
Balance on secondary income (current transfers) −52,129 −53,848
Net lending or borrowing from financial-account transactions −294,159 −182,229
Net U.S. acquisition of financial assets 410,967 338,994
Net U.S. incurrence of liabilities 671,186 487,283
Financial derivatives other than reserves, net transactions −33,940 −33,940

The $97.4 billion widening of the current-account deficit in 2022 primarily reflected expanded deficits on goods and on secondary income that were partly offset by an expanded surplus on primary income (chart 7).

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

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Exports of goods and services to, and income received from, foreign residents increased $629.4 billion to $4.41 trillion in 2022. Imports of goods and services from, and income paid to, foreign residents increased $726.8 billion to $5.35 trillion (charts 8 and 9 and table F).

Trade in goods

Exports of goods increased $324.5 billion to $2.09 trillion, and imports of goods increased $425.2 billion to $3.28 trillion. The increases in both exports and imports reflected increases in all major components, led by industrial supplies and materials, mainly petroleum and products.

Trade in services

Exports of services increased $130.7 billion to $926.0 billion, and imports of services increased $130.3 billion to $680.3 billion. The increases in both exports and imports reflected increases in most major components, led by travel, mostly other personal travel, and transport, mostly air passenger transport.

Primary income

Receipts of primary income increased $165.4 billion to $1.22 trillion, and payments of primary income increased $127.5 billion to $1.04 trillion. The increases in both receipts and payments reflected increases in nearly all major components, led by portfolio investment income. Within portfolio investment income, the increase in receipts was due to both dividends on equity securities and interest on debt securities, and the increase in payments was mostly due to interest on debt securities. Higher short-term interest rates in 2022 also contributed to significant increases in both receipts and payments in other investment income, mostly interest on loans and deposits.

Secondary income

Receipts of secondary income increased $8.8 billion to $180.2 billion, reflecting an increase in general government transfers, mostly fines and penalties. Payments of secondary income increased $43.8 billion to $356.1 billion, reflecting an increase in general government transfers, mostly international cooperation.

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

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

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Table F. Current Account
[Millions of dollars]
Series 2019 2020 2021 2022 p Change 2021 to 2022
Current account          
Exports of goods and services and income receipts (credits) 3,839,725 3,260,095 3,780,154 4,409,536 629,382
Exports of goods 1,655,098 1,432,218 1,761,364 2,085,847 324,483
Foods, feeds, and beverages 130,988 139,280 164,749 180,080 15,331
Industrial supplies and materials 526,431 450,606 616,784 808,802 192,018
Capital goods except automotive 550,749 462,894 520,769 571,946 51,177
Automotive vehicles, parts, and engines 163,075 128,834 144,066 158,358 14,292
Consumer goods except food and automotive 204,982 174,009 221,720 245,152 23,432
Other general merchandise 59,048 51,731 60,974 79,937 18,963
Net exports of goods under merchanting 474 835 832 830 −2
Nonmonetary gold 19,351 24,028 31,472 40,742 9,270
Exports of services 891,177 726,433 795,273 926,008 130,735
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. 27,671 13,196 12,526 14,395 1,869
Transport 91,058 57,168 65,777 90,816 25,039
Travel (for all purposes including education) 198,982 72,481 70,214 135,214 65,000
Construction 3,161 2,395 3,129 1,772 −1,357
Insurance services 18,579 20,277 22,741 21,831 −910
Financial services 142,546 151,033 171,740 170,416 −1,324
Charges for the use of intellectual property n.i.e. 122,533 115,558 124,613 125,672 1,059
Telecommunications, computer, and information services 55,742 56,456 59,797 67,615 7,818
Other business services 186,178 195,046 217,426 240,646 23,220
Personal, cultural, and recreational services 22,192 20,820 23,915 25,963 2,048
Government goods and services n.i.e. 22,535 22,003 23,394 31,667 8,273
Primary income receipts 1,136,799 936,236 1,052,080 1,217,478 165,398
Direct investment income 583,369 474,585 582,837 626,506 43,669
Portfolio investment income 421,119 380,207 403,207 476,973 73,766
Other investment income 124,389 74,561 59,220 104,756 45,536
Reserve asset income 873 255 −84 2,164 2,248
Compensation of employees 7,050 6,628 6,899 7,079 180
Secondary income (current transfer) receipts 156,651 165,209 171,436 180,203 8,767
Imports of goods and services and income payments (debits) 4,285,683 3,879,793 4,626,508 5,353,331 726,823
Imports of goods 2,512,358 2,346,103 2,851,660 3,276,876 425,216
Foods, feeds, and beverages 151,555 155,445 183,323 209,498 26,175
Industrial supplies and materials 525,275 429,307 641,595 809,406 167,811
Capital goods except automotive 679,133 647,208 764,758 870,164 105,406
Automotive vehicles, parts, and engines 375,320 309,865 347,898 400,094 52,196
Consumer goods except food and automotive 655,293 639,900 767,137 843,466 76,329
Other general merchandise 113,833 102,717 121,207 118,118 −3,089
Nonmonetary gold 11,950 61,662 25,741 26,130 389
Imports of services 593,594 466,537 550,025 680,298 130,273
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. 8,716 6,203 7,982 8,360 378
Transport 112,813 72,763 105,255 154,937 49,682
Travel (for all purposes including education) 132,271 34,159 56,851 114,913 58,062
Construction 1,361 1,131 1,495 1,468 −27
Insurance services 51,219 57,673 59,377 59,055 −322
Financial services 44,360 45,314 49,529 54,655 5,126
Charges for the use of intellectual property n.i.e. 42,273 47,708 43,342 48,482 5,140
Telecommunications, computer, and information services 42,768 39,728 43,142 46,717 3,575
Other business services 112,496 112,979 129,601 137,008 7,407
Personal, cultural, and recreational services 21,316 24,325 28,304 29,358 1,054
Government goods and services n.i.e. 24,000 24,553 25,147 25,345 198
Primary income payments 893,244 773,146 912,587 1,040,106 127,519
Direct investment income 230,529 178,380 303,136 293,526 −9,610
Portfolio investment income 507,985 492,302 521,780 591,706 69,926
Other investment income 135,821 88,033 70,114 134,004 63,890
Compensation of employees 18,908 14,430 17,557 20,870 3,313
Secondary income (current transfer) payments 286,487 294,008 312,236 356,051 43,815
Balances         0
Balance on current account −445,957 −619,698 −846,354 −943,795 −97,441
Balance on goods −857,260 −913,885 −1,090,296 −1,191,029 −100,733
Balance on services 297,584 259,896 245,248 245,710 462
Balance on primary income 243,555 163,090 139,493 177,372 37,879
Balance on secondary income −129,836 −128,799 −140,800 −175,848 −35,048
p
Preliminary
n.a.
Not available
n.i.e.
Not included elsewhere

Note. The statistics are presented in table 1.2 of the International Transactions Accounts interactive data application on the BEA website.

Capital-transfer receipts increased $5.3 billion to $9.1 billion in 2022 (table G). Transactions in 2022 reflected third-quarter receipts from foreign insurance companies for losses resulting from Hurricane Ian. Capital-transfer payments increased $7.4 billion to $13.8 billion, reflecting an increase in infrastructure grants.

Net financial-account transactions were −$677.1 billion in 2022, reflecting net U.S. borrowing from foreign residents (table G).

Financial assets

Transactions in 2022 increased U.S. residents' foreign financial assets by $919.8 billion (chart 10 and table G). Transactions increased portfolio investment assets, mainly long-term debt and equity securities, by $437.8 billion; direct investment assets, mostly equity, by $435.8 billion; other investment assets by $40.3 billion, resulting from large and mostly offsetting transactions that increased deposits and decreased loans; and reserve assets by $5.8 billion.

Liabilities

Transactions in 2022 increased U.S. liabilities to foreign residents by $1.52 trillion. Transactions increased portfolio investment liabilities, mainly long-term debt securities, by $756.8 billion; other investment liabilities, mostly loans, by $407.4 billion; and direct investment liabilities, mostly equity, by $351.6 billion.

Financial derivatives

Net transactions in financial derivatives were –$81.0 billion in 2022, reflecting net U.S. borrowing from foreign residents.

Chart 10. Annual U.S. Financial-Account Transactions Excluding Financial Derivatives

[View larger chart]
Table G. Capital and Financial Accounts and Statistical Discrepancy
[Millions of dollars]
Series 2019 2020 2021 2022 p Change 2021 to 2022
Capital account          
Capital transfer receipts and other credits 71 372 3,864 9,119 5,255
Capital transfer payments and other debits 6,527 5,903 6,338 13,760 7,422
Financial account          
Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+)) 307,192 943,091 1,278,599 919,765 −358,834
Direct investment assets 105,677 271,798 421,749 435,830 14,081
Equity 157,122 291,207 426,081 434,046 7,965
Equity other than reinvestment of earnings 18,137 133,441 91,746 109,279 17,533
Reinvestment of earnings 138,985 157,766 334,335 324,766 −9,569
Debt instruments −51,445 −19,409 −4,332 1,785 6,117
Portfolio investment assets −11,453 406,364 719,095 437,812 −281,283
Equity and investment fund shares −25,304 395,995 154,795 234,459 79,664
Debt securities 13,851 10,369 564,299 203,353 −360,946
Short term −455 −24,946 75,613 −70,991 −146,604
Long term 14,307 35,315 488,686 274,344 −214,342
Other investment assets 208,310 255,956 23,763 40,308 16,545
Currency and deposits 130,517 92,767 −47,977 163,740 211,717
Loans 75,263 169,652 68,611 −117,139 −185,750
Trade credit and advances 1,163 −8,311 1,922 −6,793 −8,715
Reserve assets 4,659 8,974 113,993 5,814 −108,179
Monetary gold 0 0 0 0 0
Special drawing rights 237 81 113,685 4,966 −108,719
Reserve position in the International Monetary Fund 4,271 8,814 460 820 360
Other reserve assets 150 78 −153 28 181
Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+)) 831,045 1,634,965 1,977,294 1,515,797 −461,497
Direct investment liabilities 314,743 148,914 448,325 351,565 −96,760
Equity 277,005 167,803 380,786 305,468 −75,318
Equity other than reinvestment of earnings 153,238 87,527 168,880 110,394 −58,486
Reinvestment of earnings 123,767 80,276 211,907 195,074 −16,833
Debt instruments 37,738 −18,889 67,539 46,097 −21,442
Portfolio investment liabilities 233,469 946,560 676,112 756,789 80,677
Equity and investment fund shares −291,427 687,417 −19,562 −161,438 −141,876
Debt securities 524,896 259,144 695,674 918,227 222,553
Short term −33,145 269,163 −61,466 59,031 120,497
Long term 558,041 −10,019 757,140 859,196 102,056
Other investment liabilities 282,834 539,490 852,857 407,442 −445,415
Currency and deposits 211,220 319,425 318,654 142,960 −175,694
Loans 61,548 207,501 402,011 247,746 −154,265
Trade credit and advances 10,066 12,564 19,358 16,736 −2,622
Special drawing rights allocations 0 0 112,834 0 −112,834
Financial derivatives other than reserves, net transactions −41,670 −5,107 −41,902 −81,038 −39,136
Statistical discrepancy          
Statistical discrepancy1 −113,111 −71,751 108,231 271,366 163,135
Balances          
Balance on capital account −6,456 −5,532 −2,474 −4,641 −2,167
Net lending (+) or net borrowing (−) from current- and capital-account transactions2 −452,413 −625,229 −848,828 −948,436 −99,608
Net lending (+) or net borrowing (−) from financial-account transactions3 −565,524 −696,980 −740,597 −677,070 63,527
p
Preliminary

Table Footnotes

  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.
  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 tables 1.2 and 6.1 of the International Transactions Accounts interactive data application on the BEA website.

Footnotes

  1. U.S. international transactions are presented in current dollars in accordance with international statistical presentation guidelines. For a comparison of current-dollar (or nominal) and inflation-adjusted (or real) measures of international transactions, see “Section 4 – Foreign Transactions” of the National Income and Product Accounts interactive data application on the the BEA website.