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Mar 29, 2017

BEA News Release.- March 29, 2017: U.S. Net International Investment Position Q4 and Year 2016




U.S. Net International Investment Position

Fourth Quarter and Year 2016

Fourth Quarter 2016
The U.S. net international investment position decreased to -$8,109.7 billion (preliminary) at the end of the fourth quarter of 2016 from -$7,807.3 billion (revised) at the end of the third quarter, according to statistics released today by the Bureau of Economic Analysis (BEA). The $302.3 billion decrease reflected a $954.8 billion decrease in U.S. assets and a $652.5 billion decrease in U.S. liabilities.
The net investment position decreased 3.9 percent in the fourth quarter, compared with an increase of 2.7 percent in the third quarter and an average quarterly decrease of 6.0 percent from the first quarter of 2011 through the second quarter of 2016.
U.S. assets decreased $954.8 billion to $23,916.7 billion at the end of the fourth quarter.
  • Financial derivatives decreased $566.1 billion to $2,209.0 billion, reflecting a decrease in single-currency interest rate contracts that was partly offset by an increase in foreign exchange contracts.
  • Assets excluding financial derivatives decreased $388.7 billion to $21,707.7 billion, mostly reflecting decreases in portfolio investment and other investment. The $388.7 billion decrease resulted from other changes in position of -$285.6 billion and financial transactions of -$103.1 billion (table A). Other changes in position reflected decreases from exchange-rate changes, as depreciation of major foreign currencies against the U.S. dollar lowered the value of assets in dollar terms. These decreases were partly offset by price increases on equity assets of portfolio and direct investments.


U.S. liabilities decreased $652.5 billion to $32,026.3 billion at the end of the fourth quarter.
  • Financial derivatives decreased $572.2 billion to $2,147.7 billion, reflecting a decrease in single-currency interest rate contracts that was partly offset by an increase in foreign exchange contracts.
  • Liabilities excluding financial derivatives decreased $80.3 billion to $29,878.6 billion, reflecting decreases in portfolio investment and other investment that were partly offset by an increase in direct investment. The $80.3 billion decrease was driven by other changes in position of -$89.9 billion that reflected decreases from exchange-rate changes, as depreciation of major foreign currencies lowered the value of foreign-currency-denominated liabilities in dollar terms.
Table A. Quarterly Change in the U.S. Net International Investment PositionBillions of dollars, not seasonally adjusted
Position, 2016:III Change in position in 2016:IV Position, 2016:IV
Total Attributable to:
Financial transactions Other changes in position 1
U.S. net international investment position -7,807.3 -302.3 -113.1 -189.2 -8,109.7
Net international investment position excluding financial derivatives -7,862.5 -308.4 -112.7 -195.7 -8,171.0
Financial derivatives other than reserves, net 55.2 6.1 -0.4 6.6 61.3
U.S. assets 24,871.4 -954.8 (2) (2) 23,916.7
Assets excluding financial derivatives 22,096.4 -388.7 -103.1 -285.6 21,707.7
Financial derivatives other than reserves, gross positive fair value 2,775.1 -566.1 (2) (2) 2,209.0
U.S. liabilities 32,678.8 -652.5 (2) (2) 32,026.3
Liabilities excluding financial derivatives 29,958.9 -80.3 9.6 -89.9 29,878.6
Financial derivatives other than reserves, gross negative fair value 2,719.9 -572.2 (2) (2) 2,147.7
1. Disaggregation of other changes in position into price changes, exchange-rate changes, and other changes in volume and valuation is only presented for annual statistics released in June each year.

2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives.
Updates to Statistics
The statistics for the third quarter of 2016 have been updated to incorporate new and revised source data (table B).
Table B. Updates to Third Quarter 2016 International Investment Position Aggregates Billions of dollars, not seasonally adjusted
  Preliminary estimate Revised estimate
U.S. net international investment position −7,781.1 −7,807.3
  U.S. assets 24,861.2 24,871.4
    Direct investment at market value 7,349.3 7,364.8
    Portfolio investment 10,137.1 10,137.1
    Financial derivatives other than reserves 2,775.1 2,775.1
    Other investment 4,142.6 4,137.4
    Reserve assets 457.1 457.1
  U.S. liabilities 32,642.3 32,678.8
    Direct investment at market value 7,193.6 7,246.5
    Portfolio investment 17,514.0 17,498.1
    Financial derivatives other than reserves 2,719.9 2,719.9
    Other investment 5,214.9 5,214.3
Year 2016
The U.S. net international investment position decreased to -$8,109.7 billion (preliminary) at the end of 2016 from -$7,280.6 billion at the end of 2015. The $829.0 billion decrease reflected a $575.9 billion increase in U.S. assets and a $1,404.9 billion increase in U.S. liabilities.
U.S. assets increased $575.9 billion to $23,916.7 billion at the end of 2016.
  • Assets excluding financial derivatives increased $762.3 billion to $21,707.7 billion, mostly reflecting increases in direct investment and portfolio investment. The $762.3 billion increase resulted from other changes in position of $431.3 billion and financial transactions of $331.0 billion (table C). Other changes in position reflected price increases on equity assets that were partly offset by decreases from exchange-rate changes. Financial transactions were driven by net U.S. acquisition of direct investment assets.
  • Financial derivatives decreased $186.4 billion to $2,209.0 billion, mostly reflecting a decrease in single-currency interest rate contracts.
U.S. liabilities increased $1,404.9 billion to $32,026.3 billion at the end of 2016.
  • Liabilities excluding financial derivatives increased $1,595.3 billion to $29,878.6 billion, mostly reflecting increases in direct investment and portfolio investment. The $1,595.3 billion increase resulted from other changes in position of $836.0 billion and financial transactions of $759.4 billion. Other changes in position were driven by price increases on equity liabilities. Financial transactions reflected net U.S. incurrence of direct investment liabilities and net foreign purchases of U.S. debt securities that exceeded net foreign sales of U.S. equity and investment fund shares.
  • Financial derivatives decreased $190.4 billion to $2,147.7 billion, mostly reflecting a decrease in single-currency interest rate contracts.

Table C. Annual Change in the U.S. Net International Investment PositionBillions of dollars
Position, 2015 Change in position in 2016 Position, 2016
Total Attributable to:
Financial transactions Other changes in position 1
U.S. net international investment position -7,280.6 -829.0 -406.5 -422.6 -8,109.7
Net international investment position excluding financial derivatives -7,337.9 -833.1 -428.4 -404.7 -8,171.0
Financial derivatives other than reserves, net 57.2 4.1 22.0 -17.9 61.3
U.S. assets 23,340.8 575.9 (2) (2) 23,916.7
Assets excluding financial derivatives 20,945.4 762.3 331.0 431.3 21,707.7
Financial derivatives other than reserves, gross positive fair value 2,395.4 -186.4 (2) (2) 2,209.0
U.S. liabilities 30,621.4 1,404.9 (2) (2) 32,026.3
Liabilities excluding financial derivatives 28,283.3 1,595.3 759.4 836.0 29,878.6
Financial derivatives other than reserves, gross negative fair value 2,338.1 -190.4 (2) (2) 2,147.7
1. Disaggregation of other changes in position into price changes, exchange-rate changes, and other changes in volume and valuation is only presented for annual statistics released in June each year.

2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives.