The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$14.09 trillion at the end of the fourth quarter of 2020, according to statistics released by the U.S. Bureau of Economic Analysis (BEA). Assets totaled $32.16 trillion and liabilities were $46.25 trillion. At the end of the third quarter, the net investment position was –$13.86 trillion.
- The –$227.5 billion change in the net investment position from the third quarter to the fourth quarter came from net financial transactions of –$287.1 billion and net other changes in position, such as price and exchange rate changes, of $59.6 billion.
- U.S. assets increased by $2.64 trillion, to a total of $32.16 trillion, mostly reflecting increases in portfolio investment and direct investment assets that were driven mainly by foreign stock price increases and, to a lesser extent, the appreciation of major foreign currencies against the U.S. dollar that raised the value of these assets in dollar terms.
- U.S. liabilities increased by $2.87 trillion, to a total of $46.25 trillion, mostly reflecting increases in portfolio investment and direct investment liabilities that were driven mainly by U.S. stock price increases that raised the value of these liabilities.
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