U.S. residents’ foreign financial assets and liabilities

U.S. International Investment Position, 2nd Quarter 2025 U.S. Bureau of Economic Analysis (BEA)

The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$26.14 trillion at the end of the second quarter of 2025, according to statistics released today by the U.S. Bureau of Economic Analysis. Assets totaled $39.56 trillion, and liabilities were $65.71 trillion. At the end of the first quarter, the net investment position was –$24.65 trillion (revised). The net investment position and components of assets and liabilities are presented in table 1.

The –$1.49 trillion change in the net investment position from the first quarter to the second quarter came from net financial transactions of –$428.1 billion and net other changes in position, such as price and exchange-rate changes, of –$1.06 trillion (table 2).

Price changes of –$2.23 trillion reflected U.S. stock price increases exceeding foreign stock price increases, which raised the market value of U.S. liabilities more than U.S. assets.

Exchange-rate changes of $1.17 trillion reflected foreign currency appreciation against the U.S. dollar, which raised the value of U.S. assets more than U.S. liabilities in dollar terms.

U.S. assets increased by $2.68 trillion to a total of $39.56 trillion at the end of the second quarter, driven by exchange-rate changes of $1.29 trillion that reflected the appreciation of foreign currencies against the U.S. dollar and by price changes of $1.04 trillion that reflected foreign stock price increases (table 2). All major investment categories of assets increased in the second quarter, led by increases in portfolio investment and direct investment assets.

U.S. liabilities increased by $4.16 trillion to a total of $65.71 trillion at the end of the second quarter, driven mainly by U.S. stock price increases that raised the market value of portfolio investment and direct investment liabilities by $1.74 trillion and by $1.51 trillion, respectively (table 2). Financial transactions of $657.2 billion that mostly reflected foreign purchases of U.S. equity and long-term debt securities also contributed to the overall increase in liabilities. All major investment categories of liabilities increased in the second quarter, led by increases in portfolio investment and direct investment liabilities.

Debt and Tariffs appear to be the most talked about issues.