U.S. net international investment position: end of the third quarter of 2016

The negative net investment position represents a U.S. net liability to the rest of the world. * The net investment position increased 3.1 percent in the third quarter, compared with a decrease of 5.9 percent in the second quarter and an average quarterly decrease of 6.0 percent from the first quarter of 2011 through the first quarter of 2016. * The $245.8 billion increase in the third quarter reflected other changes in position of $443.5 billion that were partly offset by financial transactions of -$197.8 billion (table a).1 U.S. Assets U.S. assets increased $346.2 billion to $24,861.2 billion at the end of the third quarter, reflecting an increase in assets excluding financial derivatives that was partly offset by a decrease in financial derivatives. * Assets excluding financial derivatives increased $794.9 billion to $22,086.1 billion, mostly reflecting increases in portfolio investment and direct investment assets due to increases in foreign equity prices (chart 2, table B). * Financial derivatives decreased $448.7 billion to $2,775.1 billion, mostly reflecting decreases in single-currency interest rate contracts and in foreign exchange contracts.