EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, WEDNESDAY, September 17, 2014 Sarah Scott: (202) 606-9286 BEA 14-45 U.S. International Transactions: Second Quarter 2014 Current Account The U.S. current-account deficit—a net measure of transactions between the United States and the rest of the world in goods, services, primary income (investment income and compensation), and secondary income (current transfers)—decreased to $98.5 billion (preliminary) in the second quarter of 2014 from $102.1 billion (revised) in the first quarter. The deficit decreased to 2.3 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter. The decrease in the current-account deficit was largely due to a decrease in the deficit on secondary income. In addition, the surpluses on services and primary income increased. These changes were partly offset by an increase in the deficit on goods. Goods and services The deficit on goods and services increased to $130.3 billion in the second quarter from $124.5 billion in the first quarter. Goods The deficit on goods increased to $189.2 billion in the second quarter from $182.3 billion in the first quarter. Goods exports increased to $408.8 billion from $399.5 billion. Exports increased in five of the six major general-merchandise end-use categories. The largest increases were in industrial supplies and materials; capital goods except automotive; and automotive vehicles, parts, and engines. Most of the increase in industrial supplies and materials reflected an increase in exports of petroleum and products, much of that in fuel oil. The increase in capital goods except automotive reflected an increase in civilian aircraft exports. The increase in automotive vehicles, parts, and engines was largely due to an increase in exports of passenger cars. Nonmonetary gold decreased (ITA Table 2.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=45#reqid=62&step=6&isuri=1&6210=1&6200=45). Goods imports increased to $598.0 billion from $581.9 billion. Imports increased in five of the six major general-merchandise end-use categories. The largest increases were in automotive vehicles, parts, and engines; capital goods except automotive; and consumer goods except food and automotive. The increase in automotive vehicles, parts, and engines was largely due to an increase in passenger car imports. Much of the increase in capital goods except automotive was due to increases in imports of other industrial machinery and computers. The increase in consumer goods except food and automotive largely reflected an increase in imports of durable goods, most of which was in cell phones (ITA Table 2.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=45#reqid=62&step=6&isuri=1&6210=1&6200=45). Services The surplus on services increased to $58.9 billion in the second quarter from $57.8 billion in the first quarter. Services exports increased to $177.4 billion from $174.7 billion. Eight of the nine major services categories increased. The largest increases were in travel (for all purposes including education)—much of that in “other personal travel”—and in transport, which includes freight and port services and passenger fares (ITA Table 3.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=51#reqid=62&step=6&isuri=1&6210=1&6200=51). Services imports increased to $118.5 billion from $116.8 billion. Six of the nine major services categories increased. The largest increase was in travel (for all purposes including education) (ITA Table 3.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=51#reqid=62&step=6&isuri=1&6210=1&6200=51). Primary income The surplus on primary income increased to $53.1 billion in the second quarter from $52.4 billion in the first quarter. Investment income Income receipts from foreigners on U.S. holdings of financial assets abroad increased to $200.0 billion from $198.5 billion. The increase was more than accounted for by an increase in portfolio investment income receipts. Much of the increase was in dividends on equity, which reflected increased U.S. holdings of foreign equity shares. The increase in portfolio investment receipts was partly offset by a decrease in direct investment income receipts, particularly receipts from foreign affiliates (of U.S. parents) in wholesale trade and manufacturing (ITA Table 4.1 (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=56#reqid=62&step=6&isuri=1&6210=1&6200=56); for direct investment income see ITA Table 4.2) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=57). Income payments to foreigners on U.S. liabilities increased to $144.6 billion from $144.0 billion. The increase reflected increases in direct investment income payments and other investment income payments. The increase in direct investment income was mostly accounted for by income payments of U.S. affiliates (to foreign parents) in manufacturing and petroleum- related industries (ITA Table 4.1 (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=56#reqid=62&step=6&isuri=1&6210=1&6200=56); for direct investment income see ITA Table 4.2) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=57). Compensation of employees Receipts for compensation of U.S. residents paid by nonresidents remained at $1.7 billion in the second quarter. Payments for compensation of foreign residents paid by U.S. residents increased to $4.0 billion from $3.8 billion. Secondary income (current transfers) The deficit on secondary income decreased to $21.4 billion in the second quarter from $30.0 billion in the first quarter. Secondary income receipts and payments include U.S. government and private transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes, personal transfers (remittances), insurance-related transfers, and other current transfers. Secondary income receipts increased to $39.9 billion from $31.7 billion, reflecting an increase in fines and penalties paid to the U.S. government (a component of U.S. government transfers) (ITA Table 5.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=62#reqid=62&step=6&isuri=1&6210=1&6200=62). Secondary income payments decreased to $61.3 billion from $61.7 billion, reflecting a decrease in U.S. government grants (ITA Table 5.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=62#reqid=62&step=6&isuri=1&6210=1&6200=62). Capital Account Capital-account transactions are not available for the second quarter because source data are not yet available. Second-quarter capital-account transactions will be published with the release of the third-quarter U.S. International Transactions on December 17, 2014. In the first quarter, the capital-account deficit was $0.04 billion. Financial Account Net U.S. borrowing measured by financial-account transactions was $17.6 billion in the second quarter, down from $91.2 billion in the first quarter. Both net U.S. acquisition of financial assets excluding financial derivatives and net U.S. incurrence of liabilities excluding financial derivatives were higher than in the first quarter, but the acquisition of financial assets excluding financial derivatives increased more. A shift to a negative value in net transactions of financial derivatives other than reserves moderated the drop in net borrowing. Net U.S. acquisition of financial assets excluding financial derivatives Net U.S. acquisition of financial assets excluding financial derivatives was $232.7 billion in the second quarter, up from $143.3 billion in the first quarter. Direct investment assets (equity and debt instruments) Net acquisition of direct investment assets was $89.2 billion in the second quarter, up from $31.6 billion in the first quarter. The increase reflected higher net equity investment than in the first quarter. Transactions in (intercompany) debt instruments shifted to net acquisition (ITA Table 6.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=65#reqid=62&step=6&isuri=1&6210=1&6200=65). Portfolio investment assets (equity and investment fund shares and debt securities) Net U.S. acquisition of portfolio investment assets abroad (acquisitions in excess of sales) was $184.9 billion in the second quarter, up from $100.7 billion in the first quarter. Net U.S. purchases of foreign equity and investment fund shares increased to $85.6 billion from $81.3 billion. Net U.S. purchases of foreign debt securities increased to $99.3 billion from $19.4 billion reflecting, in part, increases in net purchases of commercial paper and corporate bonds and notes (ITA Table 7.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=68#reqid=62&step=6&isuri=1&6210=1&6200=68). Other investment assets (currency and deposits, loans, insurance technical reserves, and trade credit and advances) Net U.S. sales of other investment assets abroad (sales in excess of acquisitions) were $42.2 billion in the second quarter, a shift from net acquisitions of $12.0 billion in the first quarter. The shift to net sales reflected a shift to net foreign repaymentof loans (foreign repayment exceeding U.S.-resident provision of loans) (ITA Table 8.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=71#reqid=62&step=6&isuri=1&6210=1&6200=71). Reserve assets Transactions in U.S. reserve assets increased holdings by $0.8 billion in the second quarter after decreasing holdings by $1.0 billion in the first quarter. The shift reflected an increase in the U.S. reserve position in the International Monetary Fund as the Fund drew on U.S. credit through the New Arrangements to Borrow (http://www.imf.org/external/np/exr/facts/gabnab.htm). Drawing on U.S. credit exceeded net repayments of dollars by countries that had borrowed from the IMF in previous quarters, increasing the U.S. reserve position. Net U.S. incurrence of liabilities excluding financial derivatives Net U.S. incurrence of liabilities to foreigners excluding financial derivatives was $247.4 billion in the second quarter, up from $239.8 billion in the first quarter. Direct investment liabilities (equity and debt instruments) Net incurrence of direct investment liabilities to foreigners was $72.0 billion in the second quarter, a shift from net repayment of liabilities of $121.7 billion in the first quarter. The shift to net incurrence primarily reflected a shift to net equity investment other than reinvestment of earnings from first-quarter disinvestment. In addition, transactions in (intercompany) debt instruments shifted to net incurrence from net repayment (ITA Table 6.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=65#reqid=62&step=6&isuri=1&6210=1&6200=65). Portfolio investment liabilities (equity and investment fund shares and debt securities) Net U.S. incurrence of portfolio investment liabilities to foreigners was $74.8 billion in the second quarter, down from $237.9 billion in the first quarter. Net foreign purchases of U.S. equity and investment fund shares were $0.7 billion, down from $93.6 billion. Net foreign purchases of U.S. debt securities were $74.1 billion, down from $144.2 billion, reflecting a shift to net foreign sales of U.S. Treasury bills and certificates and lower net foreign purchases of U.S. Treasury bonds and notes (ITA Table 7.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=68#reqid=62&step=6&isuri=1&6210=1&6200=68). Other investment liabilities (currency and deposits, loans, insurance technical reserves, trade credit and advances, and special drawing rights allocations) Net U.S. incurrence of other investment liabilities to foreigners was $100.7 billion in the second quarter, down from $123.6 billion in the first quarter. The second-quarter decrease resulted from combined decreases in transactions for loans, currency, and trade credit and advances that more than offset a shift to net increases in foreign-resident deposits (ITA Table 8.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=71#reqid=62&step=6&isuri=1&6210=1&6200=71). Financial derivatives other than reserves Net borrowing in financial derivatives other than reserves was $2.8 billion in the second quarter, a shift from net lending of $5.3 billion in the first quarter. Transactions in financial derivatives are only available as a net value equal to transactions for assets less transactions for liabilities. A positive value represents net cash payments by U.S. residents to foreign residents from settlements of derivatives contracts (net lending) and a negative value represents net U.S. cash receipts (net borrowing). Statistical discrepancy The statistical discrepancy is the difference between net acquisition of assets and net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current and capital accounts. The statistical discrepancy was $80.9 billion in the second quarter compared with $11.0 billion in the first quarter. * * * In the second quarter, the U.S. dollar depreciated 0.7 percent on a trade-weighted quarterly average basis against a group of 7 major currencies, after appreciating 1.5 percent in the first quarter. Exchange rate data are based on Federal Reserve Statistical Release H.10. * * * Revisions to first quarter 2014 The first-quarter 2014 international transactions are revised from previously published statistics. The current-account deficit in the first quarter of 2014 is revised downward to $102.1 billion from $111.2 billion. The goods deficit of $182.3 billion is nearly unrevised. The services surplus is revised upward to $57.8 billion from $55.5 billion. The primary income surplus is revised upward to $52.4 billion from $46.7 billion. The secondary income deficit is revised downward to $30.0 billion from $31.0 billion. First-quarter net borrowing from financial-account transactions is revised upward to $91.2 billion from $77.5 billion. Net U.S. acquisition of financial assets excluding financial derivatives is revised downward to $143.3 billion from $144.9 billion, and net U.S. incurrence of liabilities excluding financial derivatives is revised upward to $239.8 billion from $229.8 billion. * * * Release dates in 2014: Fourth Quarter and Year 2013...................................March 19, 2014 (Wednesday) First Quarter 2014 and Annual Revisions.........................June 18, 2014 (Wednesday) Second Quarter 2014........................................September 17, 2014 (Wednesday) Third Quarter 2014..........................................December 17, 2014 (Wednesday) * * * BEA’s national, international, regional, and industry statistics; the SURVEY OF CURRENT BUSINESS; and BEA news releases are available without charge on BEA’s Web site at (www.bea.gov). At the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. NOTE: This news release is available on BEA's Web site along with Highlights (www.bea.gov/newsreleases/international/transactions/2014/pdf/trans214_fax.pdf) related to this release, the latest detailed statistics (www.bea.gov/iTable/index_ita.cfm) for U.S. international transactions, and a description of the estimation methods (www.bea.gov/international/concepts_methods.htm) used to compile them. The second-quarter statistics in this release are preliminary and will be revised on December 17, 2014. All links in the text of this release—including archived versions of this release—refer to the latest available statistics. September 17, 2014 Table 1. U.S. International Transactions--Continues [Millions of dollars] Change: Seasonally adjusted Change: Line 2012 2013 2012 to 2014:I to 2013 2013 2014 2014:II II III IV I r II p   Current account         1 Exports of goods and services and income receipts (credits)......................................... 3,085,260 3,178,744 93,484 786,909 796,943 814,014 806,089 827,860 21,771 2 Exports of goods and services..................................................................... 2,216,540 2,280,194 63,654 565,335 570,756 581,692 574,187 586,256 12,069 3 Goods........................................................................................... 1,561,689 1,592,784 31,095 394,988 398,088 407,103 399,536 408,809 9,273 4 General merchandise........................................................................... 1,523,835 1,557,445 33,610 385,325 389,954 401,300 392,566 404,766 12,200 5 Foods, feeds, and beverages................................................................. 132,905 136,184 3,279 31,192 33,292 37,797 35,764 35,556 -208 6 Industrial supplies and materials........................................................... 482,423 492,050 9,627 119,474 123,932 128,833 123,234 127,103 3,869 7 Capital goods except automotive............................................................. 527,524 534,552 7,028 134,781 133,946 134,877 134,523 137,189 2,666 8 Automotive vehicles, parts, and engines..................................................... 146,150 152,556 6,406 38,327 38,710 38,593 37,270 39,863 2,593 9 Consumer goods except food and automotive................................................... 180,967 188,359 7,392 48,579 46,858 47,373 48,314 50,087 1,773 10 Other general merchandise................................................................... 53,865 53,744 -121 12,973 13,216 13,828 13,460 14,969 1,509 11 Net exports of goods under merchanting........................................................ 566 616 50 169 150 149 141 152 11 12 Nonmonetary gold.............................................................................. 37,289 34,724 -2,565 9,494 7,984 5,654 6,829 3,891 -2,938 13 Services........................................................................................ 654,850 687,410 32,560 170,347 172,668 174,589 174,651 177,447 2,796 14 Maintenance and repair services n.i.e. ....................................................... 15,115 16,295 1,180 3,527 4,525 4,802 4,223 4,492 269 15 Transport..................................................................................... 83,592 87,267 3,675 21,879 21,335 22,180 22,037 22,733 696 16 Travel (for all purposes including education) /1/............................................. 161,249 173,131 11,882 42,637 43,741 44,054 44,129 45,747 1,618 17 Insurance services............................................................................ 16,534 16,096 -438 3,960 4,045 4,080 4,007 4,021 14 18 Financial services............................................................................ 76,605 84,066 7,461 20,859 20,734 22,081 21,184 21,629 445 19 Charges for the use of intellectual property n.i.e. .......................................... 125,492 129,178 3,686 32,483 32,581 31,866 32,785 33,124 339 20 Telecommunications, computer, and information services........................................ 32,103 33,409 1,306 8,427 8,396 8,303 8,057 8,144 87 21 Other business services....................................................................... 119,892 123,447 3,555 30,352 30,970 31,570 31,662 31,680 18 22 Government goods and services n.i.e. ......................................................... 24,267 24,522 255 6,224 6,343 5,653 6,566 5,876 -690 23 Primary income receipts ........................................................................ 762,885 780,120 17,235 193,497 196,002 200,446 200,213 201,733 1,520 24 Investment income............................................................................. 756,531 773,425 16,894 191,826 194,324 198,759 198,506 200,016 1,510 25 Direct investment income.................................................................... 460,329 466,706 6,377 115,441 117,248 120,357 116,417 115,252 -1,165 26 Portfolio investment income................................................................. 260,081 275,704 15,623 68,496 69,473 70,968 74,303 76,753 2,450 27 Other investment income..................................................................... 35,648 30,637 -5,011 7,786 7,525 7,368 7,690 7,937 247 28 Reserve asset income........................................................................ 474 377 -97 103 78 66 96 74 -22 29 Compensation of employees..................................................................... 6,354 6,695 341 1,671 1,678 1,686 1,707 1,716 9 30 Secondary income (current transfer) receipts /2/................................................ 105,835 118,429 12,594 28,078 30,184 31,876 31,689 39,871 8,182 31 Imports of goods and services and income payments (debits).......................................... 3,546,009 3,578,998 32,989 893,055 898,247 901,330 908,200 926,366 18,166 32 Imports of goods and services..................................................................... 2,754,145 2,756,586 2,441 687,134 691,953 694,140 698,722 716,508 17,786 33 Goods........................................................................................... 2,303,785 2,294,453 -9,332 572,071 576,024 576,193 581,875 597,974 16,099 34 General merchandise........................................................................... 2,284,570 2,276,712 -7,858 567,376 571,971 572,027 578,054 594,232 16,178 35 Foods, feeds, and beverages................................................................. 111,129 116,024 4,895 29,276 28,986 29,143 30,106 32,433 2,327 36 Industrial supplies and materials........................................................... 734,820 686,594 -48,226 170,269 171,747 167,653 174,760 170,544 -4,216 37 Capital goods except automotive............................................................. 551,781 557,839 6,058 137,923 140,189 142,281 143,023 148,692 5,669 38 Automotive vehicles, parts, and engines..................................................... 298,504 309,571 11,067 77,109 79,187 79,808 77,464 83,406 5,942 39 Consumer goods except food and automotive................................................... 518,829 533,946 15,117 133,686 133,757 135,414 134,964 140,475 5,511 40 Other general merchandise................................................................... 69,508 72,738 3,230 19,112 18,105 17,728 17,738 18,681 943 41 Nonmonetary gold.............................................................................. 19,214 17,741 -1,473 4,695 4,053 4,166 3,820 3,743 -77 42 Services........................................................................................ 450,360 462,134 11,774 115,063 115,929 117,947 116,848 118,534 1,686 43 Maintenance and repair services n.i.e. ....................................................... 7,970 7,620 -350 1,960 1,993 1,797 1,820 1,855 35 44 Transport..................................................................................... 85,029 90,754 5,725 22,477 22,521 23,299 23,051 23,498 447 45 Travel (for all purposes including education) /1/............................................. 100,317 104,677 4,360 26,101 26,146 26,766 26,398 27,854 1,456 46 Insurance services............................................................................ 53,203 50,454 -2,749 12,680 12,920 12,348 11,966 11,752 -214 47 Financial services............................................................................ 16,975 18,683 1,708 4,620 4,626 5,058 4,615 4,696 81 48 Charges for the use of intellectual property n.i.e. .......................................... 39,502 39,015 -487 9,720 9,438 9,855 10,514 10,021 -493 49 Telecommunications, computer, and information services........................................ 32,156 32,877 721 8,322 8,295 8,415 8,276 8,333 57 50 Other business services....................................................................... 87,347 92,710 5,363 22,787 23,633 24,183 24,151 24,495 344 51 Government goods and services n.i.e. ......................................................... 27,861 25,343 -2,518 6,396 6,357 6,227 6,057 6,030 -27 52 Primary income payments......................................................................... 559,892 580,466 20,574 145,990 144,478 145,806 147,783 148,600 817 53 Investment income............................................................................. 545,088 564,897 19,809 142,053 140,557 141,857 143,956 144,605 649 54 Direct investment income.................................................................... 178,712 175,830 -2,882 44,894 43,217 43,667 43,206 43,760 554 55 Portfolio investment income................................................................. 345,251 372,738 27,487 93,019 93,434 94,374 97,277 97,248 -29 56 Other investment income..................................................................... 21,125 16,329 -4,796 4,140 3,905 3,815 3,473 3,596 123 57 Compensation of employees..................................................................... 14,804 15,569 765 3,937 3,922 3,950 3,827 3,996 169 58 Secondary income (current transfer) payments /2/................................................ 231,972 241,945 9,973 59,931 61,816 61,384 61,695 61,257 -438   Capital account 59 Capital transfer receipts and other credits......................................................... 7,668 0 -7,668 0 0 0 0 n.a. n.a. 60 Capital transfer payments and other debits.......................................................... 764 412 -352 227 146 (*) 43 n.a. n.a. September 17, 2014 Table 1. U.S. International Transactions--Table Ends [Millions of dollars] Change Seasonally adjusted Change Line 2012 2013 2012 to 2014:I to 2013 2013 2014 2014:II II III IV I r II p   Financial account               61 Net U.S. acquisition of financial assets excluding financial derivatives (net increase in assets / financial outflow (+))........................................ 171,418 644,763 473,345 143,657 83,999 195,454 143,310 232,655 89,345 62 Direct investment assets.......................................................................... 375,537 408,243 32,706 120,947 105,008 104,296 31,564 89,161 57,597 63 Equity.......................................................................................... 319,024 352,106 33,082 87,046 99,586 86,087 50,091 85,016 34,925 64 Debt instruments................................................................................ 56,513 56,137 -376 33,900 5,422 18,210 -18,527 4,145 22,672 65 Portfolio investment assets....................................................................... 239,773 489,877 250,104 115,004 61,121 155,892 100,674 184,874 84,200 66 Equity and investment fund shares............................................................... 103,254 275,244 171,990 92,820 19,686 95,443 81,259 85,615 4,356 67 Debt securities................................................................................. 136,519 214,633 78,114 22,184 41,435 60,449 19,415 99,259 79,844 68 Short term.................................................................................... -6,598 45,373 51,971 20,489 17,508 -14,913 -12,213 41,347 53,560 69 Long term..................................................................................... 143,117 169,260 26,143 1,695 23,927 75,362 31,629 57,912 26,283 70 Other investment assets........................................................................... -448,352 -250,260 198,092 -92,105 -81,129 -61,952 12,028 -42,154 -54,182 71 Currency and deposits........................................................................... -515,933 -115,641 400,292 -38,151 -37,055 -1,305 -32,979 -13,469 19,510 72 Loans........................................................................................... 66,892 -137,978 -204,870 -57,810 -44,021 -61,889 56,790 -30,004 -86,794 73 Insurance technical reserves.................................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 74 Trade credit and advances....................................................................... 689 3,359 2,670 3,855 -53 1,242 -11,783 1,319 13,102 75 Reserve assets.................................................................................... 4,460 -3,097 -7,557 -189 -1,001 -2,782 -956 773 1,729 76 Monetary gold................................................................................... 0 0 0 0 0 0 0 0 0 77 Special drawing rights.......................................................................... 37 22 -15 6 5 6 8 8 0 78 Reserve position in the International Monetary Fund............................................. 4,032 -3,438 -7,470 -287 -1,071 -2,835 -1,040 710 1,750 79 Other reserve assets............................................................................ 391 319 -72 92 65 47 76 55 -21 80 Currency and deposits......................................................................... 24 3 -21 1 1 1 2 2 0 81 Securities.................................................................................... 365 315 -50 91 64 45 72 51 -21 82 Financial derivatives......................................................................... 0 0 0 0 0 0 0 0 0 83 Other claims.................................................................................. 3 1 -2 (*) (*) 1 2 2 0 84 Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+))................................................ 601,973 1,017,669 415,696 224,716 165,707 341,838 239,750 247,436 7,686 85 Direct investment liabilities..................................................................... 217,777 294,972 77,195 82,156 71,130 97,161 -121,707 72,011 193,718 86 Equity.......................................................................................... 191,427 226,834 35,407 61,980 55,579 69,487 -100,419 63,090 163,509 87 Debt instruments................................................................................ 26,349 68,138 41,789 20,175 15,551 27,673 -21,288 8,921 30,209 88 Portfolio investment liabilities.................................................................. 746,996 490,943 -256,053 -25,746 207,881 153,226 237,867 74,774 -163,093 89 Equity and investment fund shares............................................................... 239,060 -85,407 -324,467 -32,706 61,828 -91,980 93,624 701 -92,923 90 Debt securities................................................................................. 507,936 576,351 68,415 6,960 146,052 245,207 144,244 74,074 -70,170 91 Short term.................................................................................... 16,281 46,718 30,437 -32,741 -52,805 63,085 12,897 -27,265 -40,162 92 Long term..................................................................................... 491,655 529,632 37,977 39,701 198,857 182,122 131,347 101,338 -30,009 93 Other investment liabilities...................................................................... -362,799 231,753 594,552 168,307 -113,303 91,451 123,590 100,651 -22,939 94 Currency and deposits........................................................................... -245,009 172,286 417,295 103,956 -21,130 82,773 3,212 91,856 88,644 95 Loans........................................................................................... -129,409 47,606 177,015 61,347 -94,906 4,994 110,910 5,729 -105,181 96 Insurance technical reserves.................................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 97 Trade credit and advances....................................................................... 11,619 11,861 242 3,004 2,733 3,684 9,468 3,066 -6,402 98 Special drawing rights allocations.............................................................. 0 0 0 0 0 0 0 0 0 99 Financial derivatives other than reserves, net transactions /3/..................................... 7,064 2,248 -4,816 -3,302 6,569 2,929 5,277 -2,796 -8,073   Statistical discrepancy                   100 Statistical discrepancy /4/.......................................................................... 30,353 30,008 -345 22,011 26,311 -56,138 10,991 80,929 69,938   Balances                   101 Balance on current account (line 1 less line 31) /5/................................................. -460,749 -400,254 60,495 -106,146 -101,305 -87,317 -102,111 -98,506 3,605 102 Balance on goods and services (line 2 less line 32)................................................ -537,605 -476,392 61,213 -121,799 -121,197 -112,448 -124,535 -130,252 -5,717 103 Balance on goods (line 3 less line 33)........................................................... -742,095 -701,669 40,426 -177,083 -177,936 -169,090 -182,338 -189,165 -6,827 104 Balance on services (line 13 less line 42)....................................................... 204,490 225,276 20,786 55,284 56,739 56,642 57,803 58,913 1,110 105 Balance on primary income (line 23 less line 52)................................................... 202,993 199,654 -3,339 47,507 51,524 54,639 52,430 53,132 702 106 Balance on secondary income (line 30 less line 58)................................................. -126,138 -123,515 2,623 -31,854 -31,632 -29,508 -30,006 -21,386 8,620 107 Balance on capital account (line 59 less line 60) /5/................................................ 6,904 -412 -7,316 -227 -146 (*) -43 n.a. n.a. 108 Net lending (+) or net borrowing (-) from current- and capital- account transactions (line 101 plus line 107) /6/.................................................... -453,845 -400,666 53,179 -106,372 -101,450 -87,317 -102,153 -98,506 3,647 109 Net lending (+) or net borrowing (-) from financial-account transactions (line 61 less line 84 plus line 99) /6/................................................. -423,492 -370,658 52,834 -84,362 -75,140 -143,455 -91,162 -17,577 73,585 p Preliminary r Revised n.a. Not available (*) Transactions are between zero and +/- $500,000 1 All travel purposes include 1) business travel, including expenditures by border, seasonal, and other short-term workers and 2) personal travel, including health-related and education-related travel. 2 Secondary income (current transfer) receipts and payments include U.S. government and private transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes, personal transfers (remittances), insurance-related transfers, and other current transfers. 3 Transactions for financial derivatives are only available as a net value equal to transactions for assets less transactions for liabilities. A positive value represents net U.S. cash payments arising from derivatives contracts, and a negative value represents net U.S. cash receipts. 4 The statistical discrepancy, which can be calculated as line 109 less line 108, is the difference between total debits and total credits recorded in the current, capital, and financial accounts. In the current and capital accounts, credits and debits are labeled in the table. In the financial account, an acquisition of an asset or a repayment of a liability is a debit, and an incurrence of a liability or a disposal of an asset is a credit. 5 Current- and capital-account statistics in the international transactions accounts differ slightly from statistics in the National Income and Product Accounts (NIPAs) because of adjustments made to convert the international transactions statistics to national economic accounting concepts. A reconciliation between annual statistics in the two sets of accounts appears in NIPA table 4.3B (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=9&step=3&isuri=1&903=136). 6 Net lending means that U.S. residents are net suppliers of funds to foreign residents, and net borrowing means the opposite. Net lending or net borrowing can be computed from current- and capital-account transactions or from financial-account transactions. The two amounts differ by the statistical discrepancy. Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis