The U.S. international investment position measures the value of financial assets that U.S. residents own abroad and the value of U.S. financial assets owned by foreign residents at a specific date. The difference between these two amounts is the net international investment position, commonly shortened to NIIP.
In its March 2025 release, the U.S. Bureau of Economic Analysis reported that the U.S. net international investment position was −$26.23 trillion at the end of 2024. U.S. assets abroad totalled $35.89 trillion, while U.S. liabilities to foreign residents totalled $62.12 trillion.
This article explains the 2024 results, the main categories of international assets and liabilities, the factors that changed the position and the correct way to interpret a negative NIIP. It also provides updated context using BEA information available in July 2026.
What Is the International Investment Position?
The international investment position is a balance-sheet-style statement for a country’s external financial relationship with the rest of the world. It shows positions at the end of a quarter or year rather than transactions during a period.
The basic relationship is:
Net International Investment Position = U.S. Assets Abroad − U.S. Liabilities to Foreign Residents
When assets exceed liabilities, the country has a positive net position. When liabilities exceed assets, the country has a negative net position.
U.S. International Investment Position at the End of 2024
| Measure | End of 2024 | Meaning |
|---|---|---|
| U.S. assets abroad | $35.89 trillion | Financial claims of U.S. residents on foreign residents |
| U.S. liabilities to foreign residents | $62.12 trillion | U.S. financial assets owned by foreign residents |
| Net international investment position | −$26.23 trillion | Liabilities exceeded assets |
The negative sign does not mean that every U.S. international investment loses money or that the country is insolvent. It means that, at the measurement date and using BEA’s valuation methods, foreign residents’ financial claims on the United States exceeded U.S. residents’ financial claims on the rest of the world.
How the Position Changed During 2024
The U.S. net international investment position moved from −$19.85 trillion at the end of 2023 to −$26.23 trillion at the end of 2024. The position therefore became more negative by $6.38 trillion.
| Source of annual change | Effect on net position | Explanation |
|---|---|---|
| Net financial transactions | −$1.27 trillion | The net effect of cross-border acquisitions of assets and incurrence of liabilities |
| Other changes in position | −$5.11 trillion | Mainly price, exchange-rate and other valuation changes |
| Total change | −$6.38 trillion | The net position became more negative |
Most of the annual deterioration came from valuation effects rather than from financial transactions alone.
Price and Exchange-Rate Effects
BEA reported that price changes reduced the 2024 net position by $3.43 trillion. U.S. stock prices rose more than foreign stock prices, which increased the market value of U.S. liabilities more than U.S. assets.
Exchange-rate changes reduced the net position by $1.06 trillion. Major foreign currencies depreciated against the U.S. dollar, lowering the dollar value of many U.S.-owned foreign assets. Because a larger share of U.S. external assets is denominated in foreign currencies than U.S. external liabilities, movements in the dollar can have a significant effect on the NIIP.
Fourth-Quarter 2024 Change
During the fourth quarter alone, the net position changed from −$24.15 trillion at the end of the third quarter to −$26.23 trillion at year-end. That was a deterioration of $2.08 trillion.
- Net financial transactions contributed −$411.2 billion.
- Other changes in position contributed −$1.67 trillion.
- Exchange-rate changes contributed −$1.18 trillion.
- Price changes contributed −$632.0 billion.
Foreign currency depreciation against the U.S. dollar was the largest reported driver of the fourth-quarter valuation change.
Main Categories of U.S. International Assets
Direct investment assets
Direct investment assets represent U.S. ownership interests that provide a lasting influence or degree of control in foreign businesses. BEA generally identifies a direct-investment relationship when an investor owns or controls at least 10 percent of the voting interest in a business enterprise.
At the end of 2024, U.S. direct investment assets were reported at $11.27 trillion in the original March 2025 release.
Portfolio investment assets
Portfolio investment assets include foreign equity and debt securities held by U.S. residents when the ownership does not qualify as direct investment. At the end of 2024, portfolio investment assets were $15.87 trillion.
Financial derivatives
Financial derivatives include contracts whose values are linked to interest rates, exchange rates, securities, commodities or other underlying variables. BEA records positive and negative fair-value positions in the international accounts.
Other investment assets
Other investment includes deposits, loans, trade credit and other financial claims that are not classified as direct investment, portfolio investment, financial derivatives or reserve assets.
Reserve assets
Reserve assets are external assets controlled by U.S. monetary authorities and available for balance-of-payments financing and related purposes. They may include foreign currency reserves, monetary gold, special drawing rights and the U.S. reserve position in the International Monetary Fund.
Main Categories of U.S. International Liabilities
Direct investment liabilities
Direct investment liabilities measure foreign direct-investment positions in U.S. businesses. In the original year-end 2024 release, they totalled $17.84 trillion.
Portfolio investment liabilities
Portfolio investment liabilities include U.S. stocks and debt securities held by foreign investors. They were the largest major liability category at the end of 2024, totalling $33.09 trillion in the original release.
Other investment and financial derivatives liabilities
These categories include foreign deposits and loans in the United States, trade credit, other financial obligations and derivative positions.
Why Did U.S. Liabilities Grow Faster Than Assets in 2024?
U.S. assets increased by $1.49 trillion during 2024, reaching $35.89 trillion. U.S. liabilities increased by $7.86 trillion, reaching $62.12 trillion.
The larger increase in liabilities reflected:
- strong increases in U.S. stock prices;
- foreign purchases of U.S. long-term debt securities and stocks;
- higher market values of portfolio investment liabilities; and
- higher market values of direct investment liabilities.
Portfolio investment liabilities increased by $4.47 trillion during the year, while direct investment liabilities increased by $3.03 trillion.
Initial Estimate vs Revised Estimate
International investment position statistics are revised as BEA receives more complete source data and conducts annual updates. The March 2025 release initially estimated the year-end 2024 net position at −$26.23 trillion.
In the June 2025 annual update, BEA revised the fourth-quarter 2024 net position to −$26.54 trillion. This illustrates why readers should identify the release date and whether a figure is preliminary, revised or superseded.
The historical series may be revised again during later annual updates. For current analysis, users should consult BEA’s latest interactive tables rather than relying only on the first published estimate.
Updated Context: First Quarter 2026
BEA’s June 2026 annual-update release reported that the U.S. net international investment position was −$21.27 trillion at the end of the first quarter of 2026. Assets were $43.37 trillion and liabilities were $64.64 trillion.
| Reference date and release context | Assets | Liabilities | Net position |
|---|---|---|---|
| End of 2024 — original March 2025 estimate | $35.89T | $62.12T | −$26.23T |
| End of 2024 — June 2025 revised net position | See revised BEA tables | See revised BEA tables | −$26.54T |
| End of Q1 2026 — June 2026 annual update | $43.37T | $64.64T | −$21.27T |
These figures should not be interpreted as a simple uninterrupted comparison without considering revisions, market prices, exchange rates and updated methodology. They do show that the NIIP can change substantially even over a relatively short period.
International Investment Position vs Current Account
| International investment position | Current account |
|---|---|
| A stock or balance measured at a specific date | A flow measured over a period |
| Shows external financial assets and liabilities | Shows trade in goods and services, primary income and secondary income |
| Changes through transactions and valuation effects | Records current-period economic transactions |
Persistent current-account deficits can contribute to greater net borrowing from the rest of the world, but the NIIP also changes because of asset prices, exchange rates and other adjustments. Therefore, the cumulative current-account balance does not explain the entire movement in the investment position.
Does a Negative NIIP Mean a Country Is Bankrupt?
No. A negative NIIP is an important indicator of external financial exposure, but it is not the same as corporate insolvency or government bankruptcy.
Its significance depends on several factors:
- the composition and maturity of assets and liabilities;
- the currency in which positions are denominated;
- the income earned on assets and paid on liabilities;
- the liquidity of the instruments;
- the country’s economic size and ability to generate income;
- investor confidence and access to financial markets; and
- the role of the domestic currency in global finance.
A country may have a negative net position while earning relatively strong returns on its foreign assets. Conversely, a positive net position does not eliminate liquidity, currency or concentration risks.
How Valuation Changes Affect the NIIP
Equity prices
When U.S. equity prices rise, the market value of U.S. stocks held by foreign investors increases. This can increase U.S. liabilities. When foreign equity prices rise, the value of foreign stocks held by U.S. residents increases, raising U.S. assets.
Exchange rates
A stronger U.S. dollar can reduce the dollar value of foreign-currency-denominated U.S. assets. Many U.S. liabilities are denominated in dollars, so the effect on liabilities may be smaller.
Interest rates and bond prices
Changes in interest rates affect the market value of debt securities. Rising interest rates generally reduce the market price of existing fixed-rate bonds, although the effect on the overall position depends on asset and liability composition.
Other changes
Other changes may result from changes in coverage, classification, write-offs, newly available source data and methodological revisions.
Limitations of the International Investment Position
- It is a snapshot at the end of a period and can change rapidly with financial markets.
- Market-value estimates may be volatile and subject to revision.
- The aggregate net figure can hide important differences in instrument, currency, maturity and sector.
- A negative position does not directly measure the affordability of payments or the probability of default.
- Gross assets and gross liabilities can both be large even when the net figure is smaller.
- Revisions can materially change historical comparisons.
- It should be interpreted with income flows, current-account data, debt statistics and broader economic conditions.
Frequently Asked Questions
What was the U.S. net international investment position at the end of 2024?
The original March 2025 BEA estimate was −$26.23 trillion. The June 2025 annual update later revised the fourth-quarter 2024 net position to −$26.54 trillion.
What were U.S. international assets and liabilities in the original 2024 release?
U.S. assets were $35.89 trillion and liabilities were $62.12 trillion.
Why was the U.S. net position negative?
Foreign residents’ financial claims on the United States exceeded U.S. residents’ financial claims on the rest of the world.
What caused the position to become more negative in 2024?
The largest factors were valuation changes, particularly stronger increases in U.S. stock prices relative to foreign stock prices, exchange-rate movements and net financial transactions.
Is the international investment position the same as government debt?
No. It covers a wide range of cross-border financial assets and liabilities across private and public sectors, including equities, direct investment, debt securities, deposits, loans and reserve assets.
How often does BEA publish the international investment position?
BEA publishes the position quarterly and conducts annual updates that may revise earlier estimates.
What is the latest available position as of July 2026?
The latest released estimate is for the end of the first quarter of 2026: assets of $43.37 trillion, liabilities of $64.64 trillion and a net position of −$21.27 trillion.
Related Accounting and Finance Topics
- Balance Sheet Explained
- Money Measurement Concept in Accounting
- Separate Valuation Principle in Accounting
- Cost Accounting Basics
Conclusion
At the end of 2024, the original BEA estimate placed the U.S. net international investment position at −$26.23 trillion, based on assets of $35.89 trillion and liabilities of $62.12 trillion. The position became substantially more negative during the year, mainly because U.S. liabilities rose much faster than U.S. assets and because valuation changes had a large effect.
The NIIP is best understood as a national external balance sheet. It should not be interpreted in isolation or treated as a direct measure of bankruptcy. The composition of the assets and liabilities, investment income, currency exposure, market prices and revisions all matter.
Authoritative references: BEA — U.S. International Investment Position, 4th Quarter and Year 2024, BEA — First Quarter 2025 and Annual Update, BEA — First Quarter 2026 and Annual Update, and BEA — International Investment Position Data.