US residents held $51 trillion in foreign liabilities and $34 trillion in assets in 3Q21 for a negative $16 trillion US net international investment position, according to the Bureau for Economic Analysis.
The US net international investment position declined from around -$5 trillion in 2012 to -$16 trillion in 2021 as growth of US liabilities outstripped growth in US assets.
The gap between assets and liabilities increased sizably during the pandemic growing from around $10 trillion in mid-2019.
Portfolio investment accounted for the greatest share with approximately $16 trillion of assets and $27 trillion of liabilities, followed by approximately $10 trillion of direct investment assets and $14 trillion of direct investment liabilities.
The research note adds that IMF special drawing rights for developing countries during the pandemic increased both US assets and liabilities.
