U.S. Q3 net international investment position totaled -$13.95 trillion

December 29, 2020

The Bureau of Economic Analysis noted that the U.S. net international investment position totaled -$13.95 trillion at the end of the third quarter of 2020. Moreover, assets amounted to $29.41 trillion whilst liabilities amounted to $43.36 trillion.

The net investment position amounted to -$13.08 trillion at the end of the second quarter.

United States assets had a $629.2 billion increase to close the third quarter at $29.41 trillion, reflecting increases in portfolio and direct investment assets that were tempered by decreases in other investment assets and in financial derivatives. Portfolio investment assets climbed by $684.7 billion, to $13.07 trillion, and direct investment assets rose by $370.8 billion, to $8.32 trillion. These increases were due to the appreciation of major foreign currencies against the U.S. dollar and by foreign stock price increases that raised the value of these assets.

United states liabilities rose by $1.49 trillion to close at $43.36 trillion, at the end of the third quarter of 2020, which reflected increases in direct investment and portfolio investment liabilities but were offset by declines in financial derivatives and in other investment liabilities. Portfolio investment liabilities rose by $967.8 billion, to $23.01 trillion, whilst direct investment liabilities advanced by $762.3 billion, to $10.85 trillion. This was as a result of increased US equity prices that raised the value of these liabilities.

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