The U.S. Bureau of Economic Analysis has released statistics showing the U.S. net international investment position at the end of the third quarter of 2024 was negative $23.60 trillion. This figure represents the difference between U.S. residents' foreign financial assets and liabilities, with assets totaling $37.86 trillion and liabilities reaching $61.46 trillion.
The change from the second quarter's revised net investment position of negative $22.55 trillion to the third quarter's figure was primarily due to net financial transactions amounting to negative $479.5 billion and other changes in position such as price and exchange-rate changes totaling negative $577.2 billion.
Price changes amounted to a decrease of $1.43 trillion, reflecting an increase in U.S. stock prices that outpaced foreign stock price increases, thus raising the market value of U.S. liabilities more than that of U.S. assets.
These price changes were partially offset by exchange-rate adjustments valued at $936 billion, which resulted from foreign currency appreciation against the U.S dollar, increasing the value of U.S assets more than liabilities when expressed in dollars.
U.S assets rose by $1.78 trillion during this period, largely due to major foreign currencies appreciating against the dollar, enhancing asset values in dollar terms across all significant investment categories like portfolio and direct investments.
Specifically, portfolio investment assets grew by $786.2 billion to reach a total of $16.87 trillion, while direct investment assets increased by $563.5 billion to total $11.90 trillion, driven mainly by exchange-rate changes.
On the liabilities side, there was an increase of $2.83 trillion leading up to a total liability figure of $61.46 trillion at quarter-end, influenced predominantly by rising U.S stock prices which increased portfolio and direct investment liabilities' market values alongside notable financial transactions including foreign purchases of U.S debt and equity securities amounting to approximately $716.7 billion.
Portfolio investment liabilities surged by $1.59 trillion reaching a total of $32.49 trillion due largely to price shifts and financial dealings whereas direct investment liabilities saw an increase of about $840 million summing up to a total value close on around approximately 17 .54 Trillion Dollars