Archive for the 'International Investment Position' Category



BEA to Release Quarterly Global Investment Reports

A more up-to-date picture of the value of what the United States owns abroad compared to what foreign investors own in this country will debut March 26 when the Bureau of Economic Analysis (BEA) releases its first quarterly estimates of the U.S. international investment position.  That release will feature statistics for the end of 2012 as well as quarterly data back to the fourth quarter of 2005.

The new quarterly reports (read more here) will provide more frequent and timelier statistics about the size and composition of the U.S. international investment position.  This in turn will help shed light on new market developments and major economic trends as well as allow economists to monitor more closely the United States’ position as a net debtor and better gauge U.S. vulnerability to external financial shocks.  The quarterly reports will also bring the United States in line with new guidelines issued by the International Monetary Fund for more frequent data on cross-border linkages following the 2008 financial crisis.

Previously BEA has issued a report each summer that provides detailed information on the U.S. international investment position for the previous year.  Last year BEA reported that for 2011 U.S. assets in foreign countries totaled $21.13 trillion while foreign-owned assets here were $25.16 trillion.  The difference between the two figures equaled the U.S. net international investment position for 2011 of negative $4.03 trillion.

The international investment position accounts (read more here) complement the international transaction accounts (read more here and here).  When used in combination, the two sets of accounts provide a complete statistical picture of the international sector of the U.S. economy.

You can find the latest annual international investment position release here or see a template of what the new quarterly release will look like here.  You can also sign up to receive the new quarterly releases by email subscription service.

 

Value of Foreign Investment in the U.S. Increased More than Value of U.S. Investment Abroad in 2011

The U.S. net international investment position at yearend 2011 was –$4,030.3 billion (preliminary), as the value of foreign investment in the United States exceeded the value of U.S. investment abroad. At yearend 2010, the U.S. net international investment position was –$2,473.6 billion (revised).

Increases in the prices of U.S. Treasury bonds and declines in foreign stock prices raised the value of foreign investment in the United States and lowered the value of U.S. investment abroad.

The impact of changes in U.S. and foreign asset prices of –$802.1 billion accounted for over half of the –$1.6 trillion change in the U.S. net international investment position.

Most of the rest of the change in the U.S. net international investment position reflected foreign acquisitions of U.S. assets (including over $400 billion in U.S. Treasury securities) that exceeded U.S. acquisitions of foreign assets. U.S. acquisitions of foreign assets were reduced by an unusual decline in U.S. claims on foreigners as reported by U.S. banks and securities brokers.

The appreciation of the U.S. dollar against a trade-weighted index of major currencies caused a change of –$23.0 billion in the U.S. net international investment position.

The U.S. net international investment position was equal to 2.6 percent of the value of all U.S. financial assets at the end of 2011, up from 1.6 percent in 2010 and up from the recent peak of 2.3 percent in 2008.

To learn more about the U.S. international investment position read the full report.