U.S. International Investment Position, 3rd Quarter 2022
The U.S. net international investment position, the difference between U.S. residents' foreign financial assets and liabilities, was –$16.71 trillion at the end of the third quarter of 2022, according to statistics released today by the U.S. Bureau of Economic Analysis. Assets totaled $29.73 trillion, and liabilities were $46.44 trillion. At the end of the second quarter, the net investment position was –$16.29 trillion (revised). The net investment position and components of assets and liabilities are presented in table 1 XLSX.
The –$425.0 billion change in the net investment position from the second quarter to the third quarter came from net financial transactions of –$269.5 billion and net other changes in position, such as price and exchange-rate changes, of –$155.4 billion. Net other changes mostly reflected global stock price decreases and the depreciation of major foreign currencies against the U.S. dollar that lowered the value of U.S. assets more than U.S. liabilities, in dollar terms (table A).
Table A. Quarterly Change in the U.S. Net International Investment Position
[Billions of dollars, not seasonally adjusted]
|End of quarter position,
|Change in position in 2022:Q3||End of quarter position,
in position 1
|U.S. net international investment position||–16,285.8||–425.0||–269.5||–155.4||–16,710.8|
|Net position excluding financial derivatives||–16,357.3||–471.9||–235.6||–236.4||–16,829.2|
|Financial derivatives other than reserves, net||71.4||47.0||–33.9||80.9||118.4|
|Assets excluding financial derivatives||28,588.7||–1,685.0||436.7||–2,121.7||26,903.7|
|Financial derivatives other than reserves||2,405.7||421.3||(2)||(2)||2,826.9|
|Liabilities excluding financial derivatives||44,945.9||–1,213.0||672.3||–1,885.4||43,732.9|
|Financial derivatives other than reserves||2,334.2||374.3||(2)||(2)||2,708.5|
1. Disaggregation of other changes in position into price changes, exchange-rate changes, and other changes in volume and valuation is presented for annual statistics released in March and revised in June each year.
2. Financial transactions and other changes in financial derivatives positions are available on a net basis; they are not separately available for U.S. assets and U.S. liabilities.
U.S. Bureau of Economic Analysis
U.S. assets decreased by $1.26 trillion to a total of $29.73 trillion at the end of the third quarter, reflecting decreases in portfolio investment and direct investment assets that were partly offset by increases in financial derivatives. Portfolio investment assets decreased by $920.0 billion to $12.86 trillion, and direct investment assets decreased by $639.3 billion to $8.38 trillion, driven mainly by foreign stock price decreases and by depreciation of major currencies against the U.S. dollar that lowered the market value of these assets in dollar terms. Financial derivatives increased by $421.3 billion to $2.83 trillion, driven by increases in single-currency interest rate contracts and in foreign exchange contracts.
U.S. liabilities decreased by $838.7 billion to a total of $46.44 trillion at the end of the third quarter, reflecting decreases in portfolio investment and direct investment liabilities that were partly offset by increases in financial derivatives. Portfolio investment liabilities decreased by $742.3 billion to $23.94 trillion, driven mainly by U.S. stock and bond price decreases. Direct investment liabilities decreased by $531.3 billion to $11.54 trillion, driven mainly by U.S. stock price decreases that lowered the market value of these liabilities. Financial derivatives increased by $374.3 billion to $2.71 trillion, driven by increases in single-currency interest rate contracts and in foreign exchange contracts.
Table B. Updates to Second-Quarter 2022 International Investment Position Aggregates
[Trillions of dollars, not seasonally adjusted]
|Preliminary estimates||Revised estimates|
|U.S. net international investment position||–16.31||–16.29|
U.S. Bureau of Economic Analysis
Next release: March 29, 2023, at 8:30 a.m. EDT
U.S. International Investment Position, 4th Quarter and Year 2022
|U.S. International Investment Position Release Dates in 2023|
|4th Quarter and Year 2022||March 29|
|1st Quarter 2023 and Annual Update||June 28|
|2nd Quarter 2023||September 27|
|3rd Quarter 2023||December 28|