March 31, 2020
The Bureau of Economic Analysis noted that the U.S. net international investment position totaled $10.99 trillion at the end of the fourth quarter of 2019. Moreover, assets totaled $29.32 trillion whilst liabilities amounted to $40.31 trillion.
The net investment position amounted to $10.98 trillion at the end of the third quarter.
United States assets had a $1.04 trillion increase to close the fourth quarter, reflecting increases in portfolio and direct investment assets. Portfolio investment assets climbed by $874.6 billion, to $13.51 trillion, and direct investment assets increased by $471.5 billion, to $8.84 trillion. These increases were due to increased foreign equity prices, foreign currency appreciation against the dollar a that raised the value of these assets in dollar terms. BLS also noted, “U.S. assets increased by $4.08 trillion, to a total of $29.32 trillion, at the end of 2019, reflecting increases in all major categories of assets, particularly in portfolio investment and direct investment assets.”
United states liabilities saw an increase by $1.05 trillion to close at $40.31 trillion, at the end of the fourth quarter of 2019, which reflected increases in direct investment and portfolio investment liabilities. Direct investment liabilities rose by $641.3 billion, to $10.58 trillion,whilst portfolio investment liabilities advanced by $614.4 billion, to $21.48 trillion. This was as a result of increased US equity prices that raised the value of these liabilities. Whereas, at the end of 2019 the “U.S. liabilities increased by $5.51 trillion, to a total of $40.31 trillion reflecting increases in all major categories of liabilities, particularly in portfolio investment and direct investment liabilities,” as per BLS.
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