skip to Main Content
BEA Logo
News
 
 


News Release: U.S. International Transactions


The tables in this release are available in an XLS spreadsheet and the entire release is available in PDF format.
Also available: a brief summary of highlights.

FOR WIRE TRANSMISSION: 8:30 A.M. EST, FRIDAY, MARCH 12, 2004
Christopher Bach:    (202) 606-9545                                  BEA 04-11
Recorded Message:          606-5362

       U.S. International Transactions: Fourth Quarter and Year 2003

                               Fourth Quarter

                               Current Account

        The U.S. current-account deficit--the combined balances on trade in
goods and services, income, and net unilateral current transfers--decreased to
$127.5 billion (preliminary) in the fourth quarter of 2003 from $135.3 billion
(revised) in the third.  The decrease was more than accounted for by a large
increase in the surplus on income and an increase in the surplus on services.
These increases were partly offset by increases in the deficit on goods and in
net outflows for unilateral current transfers.

Goods and services

        The deficit on goods and services increased to $122.9 billion in the
fourth quarter from $121.6 billion in the third.

        Goods

        The deficit on goods increased to $139.2 billion in the fourth quarter
from $136.2 billion in the third.

        Goods exports increased to $188.3 billion from $177.8 billion.  More
than half of the increase was accounted for by a step-up in capital goods;  all
other major commodity categories also increased.


        Goods imports increased to $327.5 billion from $314.0 billion.  The
increase was more than accounted for by increases in consumer goods, in
automotive products, and in capital goods.

        Services

        The surplus on services increased to $16.3 billion in the fourth
quarter from $14.6 billion in the third.

        Services receipts increased to $80.6 billion from $77.1 billion.  The
largest increases were in travel, in "other" private services (such as
business, professional, and technical services, and financial services), and
in "other" transportation (such as freight and port services).

        Services payments increased to $64.3 billion from $62.5 billion.  Much
of the increase was in "other" private services and in travel.

Income

        The surplus on income increased to $12.5 billion in the fourth quarter
from $3.0 billion in the third.

        Investment income

        Income receipts on U.S.-owned assets abroad increased to $79.7 billion
from $67.8 billion.  The increase was almost entirely accounted for by a large
increase in direct investment receipts.

        Income payments on foreign-owned assets in the United States increased
to $65.9 billion from $63.5 billion.  "Other" private payments (which consists
of interest and dividends), direct investment payments, and U.S. Government
payments all increased.

        Compensation of employees

        Receipts for compensation of U.S. workers abroad were virtually
unchanged at $0.8 billion.  Payments for compensation of foreign workers in
the United States were virtually unchanged at $2.1 billion.

Unilateral current transfers

Unilateral current transfers were net outflows of $17.2 billion in the fourth
quarter, up from net outflows of $16.7 billion in the third.

                         Capital and Financial Account

                             Capital Account

        Capital account transactions were net outflows of $0.3 billion in the
fourth quarter, down from net outflows of $0.8 billion in the third.

                            Financial Account

        Net recorded financial inflows--net acquisitions by foreign residents
of assets in the United States less net acquisitions by U.S. residents of
assets abroad--were $180.9 billion in the fourth quarter, up from $105.9
billion in the third.  Financial inflows for foreign-owned assets in the
United States increased much more than financial outflows for U.S.-owned assets
abroad.

U.S.-owned assets abroad

        U.S.-owned assets abroad increased $51.1 billion in the fourth quarter,
compared with an increase of $13.7 billion in the third.

        U.S. claims on foreigners reported by U.S. banks decreased $39.5 billion
in the fourth quarter, following a decrease of $36.4 billion in the third.

        Net U.S. purchases of foreign securities were $17.0 billion in the
fourth quarter, down from $28.6 billion in the third.  Net U.S. purchases of
foreign stocks were $10.0 billion, down from $30.0 billion.  Transactions in
foreign bonds shifted to net U.S. purchases of $7.0 billion from net U.S.
sales of $1.4 billion.

        Net financial outflows for U.S. direct investment abroad were $49.6
billion in the fourth quarter, up from $42.2 billion in the third.  Increases
in reinvested earnings and in net equity capital outflows more than offset a
shift in intercompany debt to net inflows from net outflows.

        U.S. official reserve assets decreased $2.2 billion in the fourth
quarter, in contrast to an increase of $0.6 billion in the third.

Foreign-owned assets in the United States

        Foreign-owned assets in the United States increased $232.0 billion in
the fourth quarter, compared with an increase of $119.6 billion in the third.

        U.S. liabilities to foreigners reported by U.S. banks increased $36.2
billion in the fourth quarter, following an increase of $4.8 billion in the
third.

        Net foreign purchases of U.S. securities other than U.S. Treasury
securities rebounded to $87.5 billion in the fourth quarter, from $9.6 billion
in the third.  Transactions in U.S. stocks shifted to net foreign purchases of
$22.7 billion from net foreign sales of $3.4 billion.  Net foreign purchases of
U.S. corporate bonds were $64.4 billion, up from $57.5 billion, and
transactions in federally sponsored agency bonds shifted to net foreign
purchases of $0.4 billion from net foreign sales of $44.5 billion.

        Net foreign purchases of U.S. Treasury securities were $20.1 billion in
the fourth quarter, down from $50.2 billion in the third.

        Net financial inflows for foreign direct investment in the United States
were $23.2 billion in the fourth quarter, up from $1.8 billion in the third.
The increase was more than accounted for by a shift in intercompany debt to
net inflows from net outflows.  Net equity capital inflows increased slightly,
and  reinvested earnings decreased.

        Foreign official assets in the United States increased $64.4 billion
in the fourth quarter, following an increase of $45.3 billion in the third.

        Net U.S. currency shipments to foreign countries were $7.5 billion in
the fourth quarter, up from $2.8 billion in the third.

        The statistical discrepancy--errors and omissions in recorded
transactions--was a negative $53.1 billion in the fourth quarter, compared
with a positive $30.2 billion in the third.

In the fourth quarter, the U.S. dollar depreciated 6 percent on a
trade-weighted quarterly average basis against a group of 7 major currencies.

                              The Year 2003

                             Current Account

        The U.S. current-account deficit--the combined balances on trade in
goods and services, income, and net unilateral current transfers--increased to
$541.8 billion in 2003 from $480.9 billion in 2002.  An increase in the deficit
on goods more than accounted for the increase; an increase in net outflows for
unilateral current transfers and a decrease in the surplus on services also
contributed to the rise in the deficit.  In contrast, the balance on income
shifted to a surplus in 2003 from a deficit in 2002.

Goods and services

        The deficit on goods and services increased to $490.2 billion in 2003
from $418.0 billion in 2002.

         Goods

        The deficit on goods increased to $549.4 billion in 2003 from $482.9
billion in 2002.

         Goods exports increased to $713.8 billion from $681.9 billion.
Agricultural and nonagricultural products both increased.  More than half of
the increase in nonagricultural products was attributable to a rise in
nonagricultural industrial supplies and materials; the next largest increase
was in consumer goods.

         Goods imports increased to $1,263.2 billion from $1,164.7 billion.
About one-third of the increase was attributable to an increase in petroleum
and petroleum products.  All major categories of nonpetroleum products
increased; the largest increases were in consumer goods and in nonpetroleum
industrial supplies and materials.

         Services

        The surplus on services decreased to $59.2 billion in 2003 from $64.8
billion in 2002.

        Services receipts increased to $304.9 billion from $292.2 billion.
Increases in "other" private services (such as business, professional, and
technical services, and financial services), in royalties and license fees,
and in "other" transportation (such as freight and port services) were partly
offset by decreases in travel and passenger fares.

        Services payments increased to $245.7 billion from $227.4 billion.  The
increase was more than accounted for by increases in "other" private services,
in "other" transportation, and in direct defense expenditures.

Income

        The balance on income shifted to a surplus of $16.6 billion in 2003
from a deficit of $4.0 billion in 2002.

        Investment income

        Income receipts on U.S.-owned assets abroad increased to $272.3 billion
from $252.4 billion.  The increase was more than accounted for by an increase
in direct investment receipts.  "Other" private receipts (which consists of
interest and dividends) decreased.

        Income payments on foreign-owned assets in the United States decreased
to $250.4 billion from $251.1 billion.  Decreases in "other" private payments
(which consists of interest and dividends) and in U.S. Government payments
were partly offset by an increase in direct investment payments.

         Compensation of employees

         Receipts for compensation of U.S. workers abroad increased slightly to
$3.3 billion from $3.2 billion.  Payments for compensation of foreign workers
in the United States increased slightly to $8.5 billion from $8.4 billion.

Unilateral current transfers

        Unilateral current transfers were net outflows of $68.3 billion in
2003, up from net outflows of $58.9 billion in 2002.

                          Capital and Financial Account

                                 Capital Account

        Capital account transactions were net outflows of $3.1 billion in 2003,
up from net outflows of $1.3 billion in 2002.

                               Financial Account

        Net recorded financial inflows--net acquisitions by foreign residents
of assets in the United States less net acquisitions by U.S. residents of
assets abroad--were $579.0 billion in 2003, up from $528.0 billion in 2002.
Financial inflows for foreign-owned assets in the United States increased more
than financial outflows for U.S.-owned assets abroad.

U.S.-owned assets abroad

        U.S.-owned assets abroad increased $277.7 billion in 2003, compared
with an increase of $179.0 billion in 2002.

         U.S. claims on foreigners reported by U.S. banks increased $24.7
billion in 2003, compared with an increase of $21.4 billion in 2002.

        Transactions in foreign securities shifted to net U.S. purchases of
$64.1 billion in 2003 from net U.S. sales of $15.8 billion in 2002.  Net U.S.
purchases of foreign stocks were $91.3 billion, up from $17.7 billion.  Net
U.S. sales of foreign bonds were $27.2 billion, down from $33.5 billion.

        Net financial outflows for U.S. direct investment abroad were $154.8
billion in 2003, up from $137.8 billion in 2002.  Increases in reinvested
earnings and in net equity capital outflows more than offset a decrease in
net intercompany debt outflows.

         U.S. official reserve assets decreased $1.5 billion in 2003, following
an increase of $3.7 billion in 2002.

Foreign-owned assets in the United States

        Foreign-owned assets in the United States increased $856.7 billion in
2003, compared with an increase of $707.0 billion in 2002.

        U.S. liabilities to foreigners reported by U.S. banks increased $94.5
billion in 2003, following an increase of $91.1 billion in 2002.

        Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $238.7 billion in 2003, down from $291.5 billion in 2002.  Net
foreign purchases of U.S. stocks were $37.2 billion, down from $55.2 billion.
Net foreign purchases of U.S. corporate bonds were $249.5 billion, up from
$160.0 billion.  Transactions in federally sponsored agency bonds shifted to
net foreign sales of $48.1 billion from net foreign purchases of $76.3 billion.

        Net foreign purchases of U.S. Treasury securities were $139.9 billion
in 2003, up from $96.2 billion in 2002.

        Net financial inflows for foreign direct investment in the United States
were $82.0 billion in 2003, up from $39.6 billion in 2002.  An increase in
reinvested earnings and a decrease in net intercompany debt outflows more than
offset a decrease in net equity capital inflows.

         Foreign official assets in the United States increased $207.7 billion
in 2003, following an increase of $94.9 billion in 2002.

         Net U.S. currency shipments to foreign countries were $16.6 billion in
2003, down from $21.5 billion in 2002.

        The statistical discrepancy--errors and omissions in recorded
transactions--was a negative $34.1 billion in 2003, compared with a negative
$45.9 billion in 2002.

        In 2003, the U.S. dollar depreciated 12 percent on a trade-weighted
yearly average basis against a group of 7 major currencies.


                                  Revisions

        The first three quarters of 2003 were revised to reflect revised
seasonal adjustments and, for the third quarter, receipt of new or revised
data.  In the third quarter, the current-account deficit was revised to $135.3
billion from $135.0 billion.  The goods deficit was virtually unrevised at
$136.2 billion; the services surplus was revised to $14.6 billion from $14.9
billion; the income surplus was revised to $3.0 billion from $2.6 billion; and
unilateral current transfers were revised to net outflows of $16.7 billion from
net outflows of $16.3 billion. Net recorded financial inflows were revised to
$105.9 billion from $123.3 billion.  Revisions to the first and second
quarters were small.

                            *         *         *

     Release dates in 2004:

     Fourth quarter and year 2003......................March 12, 2004 (Friday)
     First quarter 2004.................................June 18, 2004 (Friday)
     Second quarter 2004..........................September 14, 2004 (Tuesday)
     Third quarter 2004...........................December 16, 2004 (Thursday)

                           *         *          *

        BEA's major national, regional, international, and industry estimates,
the Survey of Current Business, and BEA news releases are available on BEA's
Web site:

                                <www.bea.gov>

        Summary BEA estimates are available on recorded messages at the time of
public release at the following telephone numbers:

                (202) 606-5362 U.S. international transactions
                         -5306 Gross domestic product
                         -5303 Personal income and outlays

        Most of BEA's estimates and analyses are published in the Survey of
Current Business, BEA's monthly journal.  Subscriptions and single copies of
the printed Survey are for sale by the Superintendent of Documents, U.S.
Government Printing Office.  Internet: <bookstore.gpo.gov>; phone:
(202)512-1800; fax: (202)512-2250; mail: Stop SSOP, Washington, DC 20402-0001.
                                                                                                                                                                                          March 12, 2004


Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]

                                                                                                                                                                                               Change:
                                 (Credits +, debits -)                                  2002         2003p       Change:       2002          2003                                               2003
                                                                                                                2002-2003       IV           Ir           IIr         IIIr          IVp         III-IV

                                   Current account

 1 Exports of goods and services and income receipts...............................   1,229,649    1,294,236       64,587      311,015      309,869      311,387      323,463      349,517       26,054

 2      Exports of goods and services..............................................     974,107    1,018,693       44,586      246,151      247,388      247,497      254,848      268,958       14,110

 3          Goods, balance of payments basis.......................................     681,874      713,761       31,887      170,840      173,385      174,287      177,777      188,312       10,535

 4          Services...............................................................     292,233      304,932       12,699       75,311       74,003       73,210       77,071       80,646        3,575
 5              Transfers under U.S. military agency sales contracts...............      11,943       12,716          773        2,989        2,827        3,014        3,384        3,491          107

 6              Travel.............................................................      66,547       65,054       -1,493       18,005       16,040       14,494       16,425       18,095        1,670
 7              Passenger fares....................................................      17,046       15,598       -1,448        4,255        3,732        3,452        4,046        4,368          322
 8              Other transportation...............................................      29,166       31,871        2,705        7,682        7,834        7,850        7,812        8,374          562

 9               Royalties and license fees........................................      44,142       47,870        3,728       11,157       11,624       11,938       12,031       12,277          246
10               Other private services............................................     122,594      131,013        8,419       31,022       31,744       32,260       33,170       33,838          668
11               U.S. Government miscellaneous services............................         795          810           15          201          202          202          203          203         ....

12      Income receipts............................................................     255,542      275,543       20,001       64,864       62,481       63,890       68,615       80,559       11,944
13           Income receipts on U.S.-owned assets abroad...........................     252,379      272,276       19,897       64,077       61,674       63,076       67,795       79,733       11,938
14               Direct investment receipts........................................     142,933      175,481       32,548       38,735       37,076       39,203       43,718       55,486       11,768
15               Other private receipts............................................     106,143       92,150      -13,993       24,408       23,700       22,620       22,786       23,044          258
16               U.S. Government receipts..........................................       3,303        4,645        1,342          934          898        1,253        1,291        1,203          -88
17           Compensation of employees.............................................       3,163        3,267          104          787          807          814          820          826            6

18 Imports of goods and services and income payments...............................  -1,651,657   -1,767,775     -116,118     -424,165     -431,634     -434,165     -442,104     -459,870      -17,766

19      Imports of goods and services..............................................  -1,392,145   -1,508,857     -116,712     -362,267     -368,936     -371,597     -376,494     -391,828      -15,334

20          Goods, balance of payments basis.......................................  -1,164,746   -1,263,170      -98,424     -303,081     -309,328     -312,299     -314,025     -327,518      -13,493

21          Services...............................................................    -227,399     -245,687      -18,288      -59,186      -59,608      -59,298      -62,469      -64,310       -1,841
22              Direct defense expenditures........................................     -19,245      -23,614       -4,369       -5,193       -5,674       -6,121       -5,934       -5,885           49

23              Travel.............................................................     -58,044      -56,190        1,854      -15,025      -14,106      -12,833      -14,259      -14,992         -733
24              Passenger fares....................................................     -19,969      -20,564         -595       -5,392       -4,945       -4,705       -5,491       -5,423           68
25              Other transportation...............................................     -38,527      -45,058       -6,531      -10,271      -10,879      -11,255      -11,313      -11,611         -298

26               Royalties and license fees........................................     -19,258      -19,881         -623       -4,592       -4,707       -4,706       -5,181       -5,285         -104
27               Other private services............................................     -69,436      -77,376       -7,940      -17,984      -18,552      -18,929      -19,538      -20,357         -819
28               U.S. Government miscellaneous services............................      -2,920       -3,004          -84         -729         -745         -749         -753         -757           -4

29      Income payments............................................................    -259,512     -258,918          594      -61,898      -62,698      -62,568      -65,610      -68,042       -2,432
30           Income payments on foreign-owned assets in the United States..........    -251,108     -250,390          718      -59,771      -60,515      -60,449      -63,533      -65,894       -2,361
31               Direct investment payments........................................     -49,458      -71,532      -22,074      -12,510      -15,419      -17,414      -19,048      -19,652         -604
32               Other private payments............................................    -127,735     -112,466       15,269      -29,648      -28,245      -26,769      -28,154      -29,298       -1,144
33               U.S. Government payments..........................................     -73,915      -66,392        7,523      -17,613      -16,851      -16,266      -16,331      -16,944         -613
34           Compensation of employees.............................................      -8,404       -8,528         -124       -2,127       -2,183       -2,119       -2,077       -2,148          -71

35 Unilateral current transfers, net...............................................     -58,853      -68,291       -9,438      -15,436      -17,391      -17,062      -16,651      -17,188         -537
36      U.S. Government grants.....................................................     -17,097      -21,833       -4,736       -4,338       -5,813       -5,654       -5,543       -4,823          720
37      U.S. Government pensions and other transfers...............................      -5,125       -5,341         -216       -1,292       -1,320       -1,335       -1,334       -1,352          -18
38      Private remittances and other transfers....................................     -36,631      -41,117       -4,486       -9,806      -10,258      -10,073       -9,774      -11,013       -1,239

                                                                                                                                                                                          March 12, 2004
Table 1.--U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]

                                                                                                                                                                                               Change:
                                 (Credits +, debits -)                                  2002         2003p       Change:       2002          2003                                                2003
                                                                                                                2002-2003       IV           Ir           IIr         IIIr          IVp         III-IV

                             Capital and financial account

                                    Capital account

39 Capital account transactions, net...............................................      -1,285       -3,050       -1,765         -358         -388       -1,553         -818         -291          527

                                   Financial account

40 U.S.-owned assets abroad, net (increase/financial outflow (-))..................    -178,985     -277,704      -98,719      -44,902     -100,710     -112,197      -13,696      -51,105      -37,409

41     U.S. official reserve assets, net...........................................      -3,681        1,523        5,204         -812           83         -170         -611        2,221        2,832
42          Gold...................................................................       .....         ....         ....        .....         ....         ....         ....         ....         ....
43          Special drawing rights.................................................        -475          601        1,076         -127          897         -102          -97          -97         ....
44          Reserve position in the International Monetary Fund....................      -2,632        1,494        4,126         -541         -644           86         -383        2,435        2,818
45          Foreign currencies.....................................................        -574         -572            2         -144         -170         -154         -131         -117           14

46     U.S. Government assets, other than official reserve assets, net.............         -32          700          732         -180          -70          427          483         -140         -623
47          U.S. credits and other long-term assets................................      -5,611       -6,984       -1,373       -2,818       -2,578       -1,454       -1,532       -1,420          112
48          Repayments on U.S. credits and other long-term assets..................       5,684        7,812        2,128        2,672        2,472        1,955        2,035        1,350         -685
49          U.S. foreign currency holdings and U.S. short-term assets, net.........        -105         -128          -23          -34           36          -74          -20          -70          -50

50     U.S. private assets, net....................................................    -175,272     -279,927     -104,655      -43,910     -100,723     -112,454      -13,568      -53,186      -39,618
51          Direct investment......................................................    -137,836     -154,761      -16,925      -31,670      -33,784      -29,242      -42,160      -49,579       -7,419
52          Foreign securities.....................................................      15,801      -64,121      -79,922       -5,364      -27,146        8,654      -28,616      -17,013       11,603
53          U.S. claims on unaffiliated foreigners reported by
                 U.S. nonbanking concerns..........................................     -31,880      -36,349       -4,469       -1,922      -11,998      -19,101       20,805      -26,055      -46,860
54          U.S. claims reported by U.S. banks, not included elsewhere.............     -21,357      -24,696       -3,339       -4,954      -27,795      -72,765       36,403       39,461        3,058

55 Foreign-owned assets in the United States, net (increase/financial inflow (+))..     706,983      856,660      149,677      197,448      242,096      262,911      119,626      232,031      112,405

56     Foreign official assets in the United States, net...........................      94,860      207,665      112,805       32,210       40,978       57,000       45,289       64,398       19,109
57          U.S. Government securities.............................................      73,521      153,261       79,740       33,258       31,768       38,639       20,718       62,136       41,418
58              U.S. Treasury securities...........................................      43,144      128,466       85,322       27,630       22,288       35,349       17,378       53,451       36,073
59              Other..............................................................      30,377       24,795       -5,582        5,628        9,480        3,290        3,340        8,685        5,345
60          Other U.S. Government liabilities......................................         137         -562         -699          -95         -437          -16          -41          -68          -27
61          U.S. liabilities reported by U.S. banks, not included elsewhere........      17,594       49,633       32,039       -2,094        8,321       17,628       23,166          518      -22,648
62          Other foreign official assets..........................................       3,608        5,333        1,725        1,141        1,326          749        1,446        1,812          366

63     Other foreign assets in the United States, net..............................     612,123      648,995       36,872      165,238      201,118      205,911       74,337      167,633       93,296
64          Direct investment......................................................      39,633       81,982       42,349       15,281       34,478       22,483        1,839       23,186       21,347
65          U.S. Treasury securities...............................................      96,217      139,863       43,646       12,705       14,568       55,037       50,203       20,055      -30,148
66          U.S. securities other than U.S. Treasury securities....................     291,492      238,652      -52,840       66,964       55,574       85,964        9,628       87,486       77,858
67          U.S. currency..........................................................      21,513       16,640       -4,873        7,249        4,927        1,458        2,768        7,487        4,719
68          U.S. liabilities to unaffiliated foreigners reported by
                 U.S. nonbanking concerns..........................................      72,142       77,352        5,210        8,863       74,848        4,147        5,140       -6,783      -11,923
69          U.S. liabilities reported by U.S. banks, not included elsewhere........      91,126       94,506        3,380       54,176       16,723       36,822        4,759       36,202       31,443

70 Statistical discrepancy (sum of above items with sign reversed).................     -45,852      -34,076       11,776      -23,602       -1,842       -9,321       30,180      -53,094      -83,274

   Memoranda:
71 Balance on goods (lines 3 and 20)...............................................    -482,872     -549,409      -66,537     -132,241     -135,943     -138,012     -136,248     -139,206       -2,958
72 Balance on services (lines 4 and 21)............................................      64,834       59,245       -5,589       16,125       14,395       13,912       14,602       16,336        1,734
73 Balance on goods and services (lines 2 and 19)..................................    -418,038     -490,164      -72,126     -116,116     -121,548     -124,100     -121,646     -122,870       -1,224
74 Balance on income (lines 12 and 29).............................................      -3,970       16,625       20,595        2,966         -217        1,322        3,005       12,517        9,512
75 Unilateral current transfers, net (line 35).....................................     -58,853      -68,291       -9,438      -15,436      -17,391      -17,062      -16,651      -17,188         -537
76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75)........    -480,861     -541,830      -60,969     -128,586     -139,156     -139,840     -135,292     -127,541        7,751
r  Revised.  p  Preliminary.

NOTE:--Details may not add to totals because of rounding.     Source:  U. S. Bureau of Economic Analysis