March 29, 2023
The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$16.12 trillion at the end of 2022, according to statistics released today by the U.S. Bureau of Economic Analysis (BEA). Assets totaled $31.68 trillion, and liabilities were $47.80 trillion. At the end of 2021, the net investment position was –$18.12 trillion.
- The $2.01 trillion change in the net investment position from the end of 2021 to the end of 2022 came from net financial transactions of –$677.1 billion and net other changes in position, such as price and exchange-rate changes, of $2.68 trillion that mostly reflected U.S. stock and bond price decreases that exceeded foreign stock and bond price decreases, which lowered the market value of U.S. liabilities more than U.S. assets.
- U.S. assets decreased by $3.39 trillion to a total of $31.68 trillion, driven mainly by foreign stock and bond price decreases, and to a lesser extent, by the depreciation of major foreign currencies against the U.S. dollar that lowered the value of foreign-currency-denominated U.S. assets in dollar terms. These price and foreign exchange decreases were partly offset by financial transactions, mostly increases in direct investment equity assets and U.S. purchases of foreign equity and long-term debt securities.
- U.S. liabilities decreased by $5.39 trillion to a total of $47.80 trillion, driven mainly by U.S. stock and bond price decreases. These price decreases were partly offset by financial transactions, mostly foreign purchases of U.S. long-term debt securities and increases in direct investment equity liabilities.
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