A Look at the U.S. International Investment Position
Third Quarter of 2024
The U.S. Bureau of Economic Analysis (BEA) recently released statistics on the U.S. international investment position for the third quarter of 2024. The U.S. international investment position (IIP) is a statistical balance sheet that presents the dollar value of U.S. external financial assets and liabilities. The U.S. net IIP is the difference between U.S. residents’ foreign financial assets and liabilities. A negative net investment position represents a U.S. net liability to the rest of the world.
The following charts present highlights of the U.S. IIP statistics for the third quarter. More detail can be found on the U.S. international investment position product page on BEA’s website.
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- The net international investment position decreased from −$22.55 trillion at the end of the second quarter of 2024 to −$23.60 trillion at the end of the third quarter.
- The $1.06 trillion decrease in the net IIP reflected an increase in liabilities that exceeded an increase in assets.
- U.S. assets increased by $1.78 trillion to a total of $37.86 trillion at the end of the third quarter, driven mainly by the appreciation of major foreign currencies against the U.S. dollar that raised the market value of assets in dollar terms.
- U.S. liabilities increased by $2.83 trillion to a total of $61.46 trillion at the end of the third quarter, driven mainly by U.S. stock price increases that raised the market value of portfolio investment and direct investment liabilities.
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- Portfolio investment assets increased by $786.2 billion to $16.87 trillion, and direct investment assets increased by $563.5 billion to $11.90 trillion.
- Financial derivatives, other investment assets, and reserve assets also increased during the third quarter.
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- Exchange-rate changes raised the value of assets by $1.02 trillion, reflecting foreign currency appreciation against the U.S. dollar. Portfolio investment and direct investment assets increased by $630.3 billion and $322.5 billion, respectively, from exchange-rate changes.
- Price changes (mostly reflecting foreign stock price increases) raised the value of U.S. assets by $380.8 billion. Portfolio investment and direct investment assets increased by $157.7 billion and $144.9 billion, respectively, from price changes.
- Financial transactions (mostly reflecting reinvestment of earnings from direct investment assets and U.S. purchases of foreign equity and debt securities, part of portfolio investment) raised assets by $216.0 billion.
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- Portfolio investment liabilities increased by $1.59 trillion to $32.49 trillion, and direct investment liabilities increased by $840.5 billion to $17.54 trillion.
- Financial derivatives and other investment liabilities also increased.
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- Price changes (mostly reflecting U.S. stock price increases) raised the value of U.S. liabilities by $1.82 trillion. Portfolio investment and direct investment liabilities increased by $1.08 trillion and $773.6 billion, respectively, from price changes.
- Financial transactions (mostly reflecting foreign purchases of U.S debt and equity securities, part of portfolio investment) raised U.S. liabilities by $716.7 billion.
