Thursday, June 29, 2006
[IWS] BEA: U.S. Net International Investment Position at Yearend 2005 [29 June 2006]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
U.S. Net International Investment Position at Yearend 2005 [29 June 2006]
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.htm
or
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.pdf
[full-text, 6 pages]
or
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.xls
[spreadsheet]
and
Highlights
http://www.bea.gov/bea/newsrelarchive/2006/intinv05_fax.pdf
The U.S. net international investment position at yearend 2005 was -$2,693.8
billion (preliminary) with direct investment valued at current cost, as the value
of foreign investments in the United States exceeded the value of U.S. investments
abroad (table 1). At yearend 2004, the U.S. net international investment position
was -$2,360.8 billion (revised).
The -$333.0 billion change in the net investment position from yearend 2004
to yearend 2005 was largely due to record private net foreign purchases of U.S.
securities, including U.S. Treasury securities, and to depreciation of most major
foreign currencies against the U.S. dollar, which lowered the dollar value of
U.S.-owned assets abroad. The impact of these net purchases and exchange-rate
changes was largely offset by price appreciation of U.S.-held foreign stocks that
surpassed by a large amount price appreciation of foreign-held U.S. stocks.
With direct investment valued at the current stock market value of owners'
equity, the net investment position was -$2,546.2 billion (preliminary) at yearend
2005, compared with -$2,448.7 billion (revised) at yearend 2004. The -$97.4 billion
change in the net investment position on this basis resulted from the same factors
as above. Price increases on direct investment were larger on this basis than with
direct investment valued at current cost. Other highlights include:
Foreign acquisitions of assets in the United States were $1,212.3 billion
in 2005, down from $1,450.2 billion in 2004. Foreign official acquisitions
were $199.5 billion, down from last year's record $387.8 billion, as a result
of sharply reduced net purchases of U.S. Treasury securities. Partly offsetting
were stronger private net foreign purchases of U.S. securities, including U.S.
Treasury securities. Net private foreign purchases of U.S. Treasury securities
were a record $199.5 billion, up from $102.9 billion. Net private foreign
purchases of U.S. securities other than U.S. Treasury securities were a record
$474.1 billion, up from $381.5 billion in 2004, of which net purchases of U.S.
bonds were $388.4 billion, up from $321.9 billion, and net purchases of U.S.
stocks were $85.8 billion, up from $59.5 billion. U.S. banks' liabilities
increased $179.8 billion, down from last year's increase of $336.7 billion,
and U.S. nonbanks' liabilities increased $30.1 billion, down from $93.3 billion.
Foreign direct investment in the United States increased $109.8 billion, down
from an increase of $133.2 billion.
U.S. acquisitions of assets abroad were $426.8 billion in 2005, down from a
record $867.8 billion in 2004, as U.S. direct investment abroad and U.S. banks'
and nonbanks' claims slowed sharply from last year's pace. U.S. direct
investment abroad increased only $9.1 billion, down from an increase of $244.1
billion in 2004. U.S. banks' claims increased $213.0 billion, down from an
increase of $361.6 billion in 2004, and U.S. nonbanks' claims increased $44.2
billion, down from an increase of $120.0 billion. In contrast, net U.S.
purchases of foreign securities, mostly foreign stocks, increased to $180.1
billion from $146.5 billion.
Price appreciation in most foreign stock markets substantially increased the
value of U.S. holdings of foreign corporate stocks and the value of owners'
equity of U.S. direct investment abroad on a market-value basis. Price
appreciation in the U.S. stock market also increased the value of foreign
holdings of U.S. corporate stocks, but by a much smaller amount.
Depreciation of most major foreign currencies against the U.S. dollar from
yearend 2004 to yearend 2005 lowered the dollar value of U.S.-owned assets
abroad, especially the value of U.S.-owned foreign corporate stocks and U.S.
direct investment abroad at market value.
AND MUCH MORE...including TABLES and CHARTS.....
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
U.S. Net International Investment Position at Yearend 2005 [29 June 2006]
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.htm
or
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.pdf
[full-text, 6 pages]
or
http://www.bea.gov/bea/newsrelarchive/2006/intinv05.xls
[spreadsheet]
and
Highlights
http://www.bea.gov/bea/newsrelarchive/2006/intinv05_fax.pdf
The U.S. net international investment position at yearend 2005 was -$2,693.8
billion (preliminary) with direct investment valued at current cost, as the value
of foreign investments in the United States exceeded the value of U.S. investments
abroad (table 1). At yearend 2004, the U.S. net international investment position
was -$2,360.8 billion (revised).
The -$333.0 billion change in the net investment position from yearend 2004
to yearend 2005 was largely due to record private net foreign purchases of U.S.
securities, including U.S. Treasury securities, and to depreciation of most major
foreign currencies against the U.S. dollar, which lowered the dollar value of
U.S.-owned assets abroad. The impact of these net purchases and exchange-rate
changes was largely offset by price appreciation of U.S.-held foreign stocks that
surpassed by a large amount price appreciation of foreign-held U.S. stocks.
With direct investment valued at the current stock market value of owners'
equity, the net investment position was -$2,546.2 billion (preliminary) at yearend
2005, compared with -$2,448.7 billion (revised) at yearend 2004. The -$97.4 billion
change in the net investment position on this basis resulted from the same factors
as above. Price increases on direct investment were larger on this basis than with
direct investment valued at current cost. Other highlights include:
Foreign acquisitions of assets in the United States were $1,212.3 billion
in 2005, down from $1,450.2 billion in 2004. Foreign official acquisitions
were $199.5 billion, down from last year's record $387.8 billion, as a result
of sharply reduced net purchases of U.S. Treasury securities. Partly offsetting
were stronger private net foreign purchases of U.S. securities, including U.S.
Treasury securities. Net private foreign purchases of U.S. Treasury securities
were a record $199.5 billion, up from $102.9 billion. Net private foreign
purchases of U.S. securities other than U.S. Treasury securities were a record
$474.1 billion, up from $381.5 billion in 2004, of which net purchases of U.S.
bonds were $388.4 billion, up from $321.9 billion, and net purchases of U.S.
stocks were $85.8 billion, up from $59.5 billion. U.S. banks' liabilities
increased $179.8 billion, down from last year's increase of $336.7 billion,
and U.S. nonbanks' liabilities increased $30.1 billion, down from $93.3 billion.
Foreign direct investment in the United States increased $109.8 billion, down
from an increase of $133.2 billion.
U.S. acquisitions of assets abroad were $426.8 billion in 2005, down from a
record $867.8 billion in 2004, as U.S. direct investment abroad and U.S. banks'
and nonbanks' claims slowed sharply from last year's pace. U.S. direct
investment abroad increased only $9.1 billion, down from an increase of $244.1
billion in 2004. U.S. banks' claims increased $213.0 billion, down from an
increase of $361.6 billion in 2004, and U.S. nonbanks' claims increased $44.2
billion, down from an increase of $120.0 billion. In contrast, net U.S.
purchases of foreign securities, mostly foreign stocks, increased to $180.1
billion from $146.5 billion.
Price appreciation in most foreign stock markets substantially increased the
value of U.S. holdings of foreign corporate stocks and the value of owners'
equity of U.S. direct investment abroad on a market-value basis. Price
appreciation in the U.S. stock market also increased the value of foreign
holdings of U.S. corporate stocks, but by a much smaller amount.
Depreciation of most major foreign currencies against the U.S. dollar from
yearend 2004 to yearend 2005 lowered the dollar value of U.S.-owned assets
abroad, especially the value of U.S.-owned foreign corporate stocks and U.S.
direct investment abroad at market value.
AND MUCH MORE...including TABLES and CHARTS.....
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 6:07 AM
