The U.S. Bureau of Economic Analysis (BEA) has released new statistics on the U.S. net international investment position for the first quarter of 2025, reporting a deficit of $24.61 trillion. This figure represents the difference between U.S. residents' foreign financial assets and liabilities, with assets totaling $36.85 trillion and liabilities at $61.47 trillion.
Compared to the fourth quarter of 2024, the net investment position improved by $1.92 trillion due to net financial transactions amounting to -$277.5 billion and other changes such as price and exchange-rate fluctuations contributing $2.20 trillion.
Price changes accounted for $1.73 trillion, reflecting an increase in asset prices and a decrease in liability prices as foreign stock markets outperformed those in the U.S. Exchange-rate variations added another $472.5 billion due to foreign currency appreciation against the dollar, which increased the value of U.S. assets more than liabilities.
U.S. assets saw an increase of $1.13 trillion by the end of Q1 2025, driven by financial transactions worth $548 billion and exchange-rate changes totaling $528.4 billion, largely due to increased short-term lending abroad through resale agreements.
On the liabilities side, there was a reduction of $792 billion by quarter-end, primarily because falling U.S. stock prices reduced direct investment and portfolio investment liabilities by significant amounts.
The BEA's annual update also incorporates newly available data for 2022-2024 from various sources including direct investment surveys and Treasury reports on securities holdings and transactions.
Additionally, new statistics related to a repurchase agreement facility established by the Federal Reserve in March 2020 have been included in this update.
For further details on these statistics, BEA directs readers to their "Additional Information" section.