The Bureau of Economic Analysis noted that the U.S. net international investment position totaled -$14.32 trillion at the end of the first quarter of 2021. Moreover, assets amounted to $32.81 trillion whilst liabilities amounted to $47.13 trillion.
The net investment position amounted to -$14.01 trillion at the end of the fourth quarter.
United States assets had a $555.5 billion increase to close the first quarter at $32.81 trillion, reflecting increases in portfolio and direct investment assets that were tempered by decreases in financial derivatives. Portfolio investment assets climbed by $528.3 billion, to $15.13 trillion, this was mostly due to increases in international stock prices and strong net purchases of foreign securities by the United States; these increases were somewhat offset by depreciation of several major foreign currencies against the US dollar and declines in foreign bond prices. Direct investment assets grew by $484.7 billion to $9.89 trillion, owing to rises in international stock prices offset in part by the depreciation of several major foreign currencies versus the US dollar. Financial derivatives fell by $386.9 billion to $2.16 trillion, due mostly to declines in single-currency interest rate contracts.
United states liabilities rose by $864.5 billion to close at $47.13 trillion, at the end of the first quarter of 2021, which reflected increases in direct investment and portfolio investment liabilities but were offset by declines in financial derivatives. Portfolio investment liabilities grew by $552.2 billion to $25.18 trillion, owing to foreign net purchases of US securities and gains in US stock prices, which were somewhat offset by declines in US bond prices. Financial derivatives fell by $427.1 billion to $2.13 trillion, owing mostly to declines in single-currency interest rate contracts.
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