FOR WIRE TRANSMISSION: 10:00 a.m. EDT, Wednesday, June 30, 1999 Investment Position: Russell B. Scholl (202) 606-9579 BEA 99-21 Harlan W. King (202) 606-9571 Direct Investment Detail at Historical Cost: Foreign Direct Investment in the United States: Sylvia E. Bargas (202) 606-9804 Gregory G. Fouch (202) 606-9831 U.S. Direct Investment Abroad: Jeffrey H. Lowe (202) 606-9865 Mark W. New (202) 606-9875 U.S. Net International Investment Position at Yearend, 1998 At yearend 1998, the value of foreign investments in the United States continued to exceed the value of U.S. investments in other countries. According to the Commerce Department's Bureau of Economic Analysis, the net international investment position of the United States was a negative $1,239.2 billion with direct investment valued at the current cost of replacing plant and equipment and other tangible assets, and the position was a negative $1,537.5 billion with direct investment valued at the current stock market value of owners' equity (Table 1). The negative position valued at the current cost of tangible assets increased $271.0 billion from $968.2 billion (revised) at yearend 1997, and the negative position valued at current stock-market value increased $471.2 billion from $1,066.3 billion (revised) at yearend 1997. Both measures increased mainly as a result of large net financial inflows and strong price appreciation in foreign assets in the United States. * Financial inflows for foreign private assets in the United States slowed from record inflows in 1997. Inflows to U.S. banks and nonbanks and net foreign purchases of U.S. Treasury securities decreased, although inflows for foreign direct investment and for U.S. corporate securities advanced to records. * Financial outflows for U.S. assets abroad also slowed, mostly in sharply reduced lending to foreigners by U.S. banks and nonbanking concerns. There were record outflows for U.S. direct investment abroad and continued large net U.S. purchases of foreign securities. * Price appreciation of U.S. stocks greatly increased the value of foreign holdings of U.S. stocks and also increased the value of foreign direct investment in the United States when measured on a market value basis. * Small net exchange rate appreciation, principally on U.S.-held foreign stocks, reflected the appreciation of European and Asian currencies that was partly offset by the depreciation of Canadian and Latin American currencies against the dollar from yearend 1997 to yearend 1998. ____________________________________________________________________________ Valuation Methods for Direct Investment The current-cost method values the U.S. and foreign parents' share of their affiliates' investment in plant and equipment using the current cost of capital equipment, in land using general price indexes, and in inventories using estimates of their replacement cost. The market-value method values the owners' equity position of the direct investment position using indexes of stock market prices. The historical-cost method values assets and liabilities at their book value. This method is only used to present country and industry detail. _________________________________________________________________________ U.S. assets abroad increased $422.3 billion to $4,930.9 billion with U.S. direct investment valued at current cost, and they increased $659.1 billion to $5,948.0 billion with U.S. direct investment valued at market value. (Position estimates have been revised. See section on data improvements at the end of this release.) Claims on foreigners reported by U.S. banks increased $28.1 billion to $1,013.9 billion. The increase in claims was considerably less than the increase in 1997 and was the smallest annual increase since 1994, as U.S. banks sharply curtailed their lending abroad, and U.S. securities dealers withdrew from lending to foreign investment funds. Lending was affected by slower economic growth in many industrial countries and by severe financial and economic problems in many emerging market countries. U.S. holdings of foreign securities increased $229.6 billion to $1,969.0 billion. The increase reflected large net U.S. purchases, mostly in the first half of the year; strong price appreciation of Western European stocks; and exchange rate appreciation, mainly of European and Asian stocks as a result of the rise in European and some Asian currencies against the U.S. dollar between yearend 1997 and yearend 1998. U.S. holdings of foreign stocks were bolstered by two exceptionally large acquisitions of U.S. companies by foreign firms through exchanges of stock with U.S. shareholders late in the year. U.S. holdings of foreign bonds increased primarily from placements of foreign new issues in the U.S. market; U.S. investors primarily sought issues of highly rated foreign entities, especially in the second half of the year when Russia's default and Brazil's problems heightened investors' aversion to cross-border risk. U.S. direct investment abroad at current cost increased $119.2 billion to $1,123.4 billion; at market value, it increased $356.0 billion to $2,140.5 billion. Net financial outflows increased to a record $132.8 billion. By account: Net equity outflows increased to a record on strong acquisitions, which were particularly large in the United Kingdom, Canada, and Australia; reinvested earnings decreased slightly from the 1997 record level, as a result of lower earnings of foreign affiliates in Asia and Latin America; and net intercompany debt outflows increased sharply. At current cost, large financial outflows mainly accounted for the increase in the position. At market value, financial outflows were boosted by a substantial increase in U.S. owners' equity as a result of the sharp rise in foreign stock prices from yearend 1997 to yearend 1998, primarily in Western Europe. Claims on unaffiliated foreigners reported by U.S. nonbanking concerns increased $33.8 billion to $596.2 billion; U.S. depositing in foreign banks slowed markedly in 1998. U.S. official reserve assets increased $11.2 billion to $146.0 billion. The reserve position with the International Monetary Fund (IMF) increased mostly as a result of the IMF's extension of dollar credits to several countries encountering financial problems. Foreign currency reserves increased mainly because of intervention purchases of Japanese yen in midyear and appreciation in Japanese yen and German mark holdings as a result of their rise against the U.S. dollar between yearend 1997 and yearend 1998. Foreign assets in the United States increased $693.2 billion to $6,170.1 billion with foreign direct investment valued at current cost, and they increased $1,130.3 billion to $7,485.4 billion with foreign direct investment valued at market value. (Position estimates have been revised. See section on data improvements at the end of this release.) Liabilities to private foreigners and international financial institutions reported by U.S. banks increased $46.1 billion to $1,017.1 billion, representing a marked slowdown from the record inflows in 1997. U.S. banks slowed their overseas borrowing, and foreigners reduced their deposits at U.S. banks as U.S. short-term interest rates declined. Another factor discouraging foreigners' depositing was the depreciation of the U.S. dollar against most European currencies and the Japanese yen after mid-year. Also, international bond funds withdrew funds from U.S. securities dealers to meet liquidity needs associated with capital market uncertainties in the second half of the year. Holdings of U.S. Treasury securities by private foreigners and international financial institutions increased $65.1 billion to $727.3 billion. Net purchases slowed sharply in 1998 as foreign investors shifted to higher yielding U.S. corporate securities; price appreciation reflected the rise in U.S. bond prices through most of the year as U.S. long-term interest rates declined. U.S. currency held by foreigners increased $16.6 billion to $228.3 billion. Foreign holdings of U.S. securities other than U.S. Treasury securities increased $443.1 billion to $2,021.8 billion, mostly as a result of record net purchases and sizeable price appreciation from rising U.S. stock prices. Strong net foreign purchases of stocks in the first half of the year and sharply higher stock prices between yearend 1997 and yearend 1998 augmented foreign holdings of U.S. stocks. Record net foreign purchases of U.S. corporate and agency bonds were spurred by higher yields on U.S. issues than on most other industrial countries' bonds, by the safety of highly rated U.S. issuers, and by generally rising bond prices. U.S. borrowers, especially U.S. federally sponsored agencies, took advantage of the demand and issued near- record amounts of new bond issues abroad. Foreign direct investment in the United States valued at current cost increased $114.7 billion to $878.7 billion; at market value, it increased $551.7 billion to $2,194.1 billion. In 1998, net financial inflows of $193.4 billion exceeded the prior year's record. By account: Net equity inflows increased sharply to a record level, boosted in part by two exceptionally large acquisitions late in the year through exchanges of stock with U.S. shareholders; reinvested earnings increased, but less than in 1997; and net intercompany debt inflows increased slightly. At current cost, record net financial inflows were partly offset by a large negative valuation adjustment (mainly related to the two exceptionally large acquisitions mentioned above) made to reconcile market-based transactions values with much smaller book values, which are the bases for valuing non-tangible assets, such as patents and copyrights, in the current-cost estimates. At market value, net financial inflows were boosted by substantial price appreciation in owners' equity, resulting from the steep rise in U.S. stock prices. Liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $7.2 billion to $460.8 billion, a smaller increase than in 1997, as U.S. corporate borrowing from foreign banks and from U.S. offshore finance affiliates slowed sharply in the second half of the year. Foreign official assets in the United States increased $0.3 billion to $836.1 billion; net financial outflows were offset by price appreciation in outstanding assets. Several industrial and developing countries reduced their official assets in the United States when markets overseas were disrupted by the financial problems of Russia, Brazil, and some Asian countries. Detailed estimates on the U.S. direct investment abroad position and on the foreign direct investment in the United States position are presented in tables 2 and 3. These detailed estimates by country and by industry are available only on an historical-cost basis. * * * Data Improvements * The negative international investment position for yearend 1997 has been revised from $1,223.6 billion to $968.2 billion with direct investment at current cost, and from $1,322.5 billion to $1,066.3 billion with direct investment at market value. The major sources of these revisions are listed below. * Estimates of U.S. holdings of foreign securities have been revised for 1994-98, reflecting incorporation of newly available preliminary results of the U.S. Treasury Department's Benchmark Survey of U.S. Portfolio Investment Abroad. The benchmark survey covered U.S. ownership of outstanding foreign long-term securities as of December 31, 1997. (The new position data also enable BEA to develop improved estimates of the associated flows of interest and dividend income receipts, which have been incorporated into BEA's revised international transactions accounts, released on June 17, 1999.) * Estimates of U.S. direct investment abroad and foreign direct investment in the United States positions on the current-cost basis have been revised back to 1976 to incorporate improved estimates of the current-cost adjustment. These improvements include the introduction of geometric depreciation, an improved treatment of transfers of equipment and structures by direct investment affiliates, newly available equipment and structures price indexes, and newly available data for capital investment, depreciation, depletion, and expensed exploration and development costs by direct investment affiliates. (These improvements also affected income and financial flows in BEA's revised international transactions accounts, released on June 17, 1999.) * * * BEA's major national, regional, international, and industry estimates, the Survey of Current Business, and BEA news releases are available on BEA's web site: http://www.bea.gov STAT-USA maintains an electronic bulletin board (EBB) and an Internet site, which contain BEA estimates, BEA news releases, and the Survey of Current Business. The information available through STAT-USA is often more detailed and more timely than that available from other sources. To subscribe to STAT-USA's Wide World Web system go to http://www.stat-usa.gov. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. For further information, call (202) 482-1986. Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5362 U.S. international transactions 5306 Gross domestic product 5303 Personal income and outlays Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The printed Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. First class mail: Annual subscription $104.00 domestic. Second class mail: Annual subscription $42.00 domestic, $52.50 foreign; single issue $15.00 domestic, $18.75 foreign. Table 1 International Investment Position of the United States at Yearend, 1997 and 1998 [Millions of dollars] Changes in 1998 (decrease (-)) Line Type of investment Position Attributable to : Position 1997/r/ Valuation adjustments 1998/p/ Exchange Total Financial Price rate Other flows changes changes/1/changes/2/ (a+b+c+d) (a) (b) (c) (d) Net international investment position of the United States: 1 With direct investment positions at current cost (line 3 less line 16)..... -968,208 -209,819 -167,585 45,380 61,064 -270,960 -1,239,168 2 With direct investment positions at market value (line 4 less line 17)..... -1,066,262 -209,819 -319,300 56,282 1,633 -471,204 -1,537,466 U.S.-owned assets abroad: 3 With direct investment positions at current cost (lines 5+6+7)........... 4,508,626 292,818 101,041 43,704 -15,293 422,270 4,930,896 4 With direct investment positions at market value (lines 5+6+8)........... 5,288,892 292,818 315,522 54,584 -3,833 659,091 5,947,983 5 U.S. official reserve assets................................................. 134,836 6,784 -628 5,024 -10 11,170 146,006 6 U.S. Government assets, other than official reserve assets................... 81,960 429 ........ -5 -2 422 82,382 U.S. private assets: 7 With direct investment at current cost (lines 9+11+14+15)............ 4,291,830 285,605 101,669 38,685 -15,281 410,678 4,702,508 8 With direct investment at market value (lines 10+11+14+15)........... 5,072,096 285,605 316,150 49,565 -3,821 647,499 5,719,595 Direct investment abroad: 9 At current cost....................................................... 1,004,228 132,829 2,892 1,957 -18,465 119,213 1,123,441 10 At market value....................................................... 1,784,494 132,829 217,373 12,837 -7,005 356,034 2,140,528 11 Foreign securities....................................................... 1,739,400 102,817 98,777 27,962 ........ 229,556 1,968,956 12 Bonds................................................................ 538,400 25,064 18,441 -20,079 ........ 23,426 561,826 13 Corporate stocks..................................................... 1,201,000 77,753 80,336 48,041 ........ 206,130 1,407,130 14 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns.................................................. 562,396 25,041 ........ 5,610 3,175 33,826 596,222 15 U.S. claims reported by U.S. banks, not included elsewhere............... 985,806 24,918 ........ 3,156 9 28,083 1,013,889 Foreign-owned assets in the United States: 16 With direct investment at current cost (lines 18+19).................... 5,476,834 502,637 268,626 -1,676 -76,357 693,230 6,170,064 17 With direct investment at market value (lines 18+20).................... 6,355,154 502,637 634,822 -1,698 -5,466 1,130,295 7,485,449 18 Foreign official assets in the United States................................ 835,709 -21,684 22,437 ........ -409 344 836,053 Other foreign assets: 19 With direct investment at current cost (lines 21+23+24+25+28+29)......................................... 4,641,125 524,321 246,189 -1,676 -75,948 692,886 5,334,011 20 With direct investment at market value (lines 22+23+24+25+28+29)........................................ 5,519,445 524,321 612,385 -1,698 -5,057 1,129,951 6,649,396 Direct investment in the United States: 21 At current cost...................................................... 764,045 193,375 -3,877 22 -74,848 114,672 878,717 22 At market value...................................................... 1,642,365 193,375 362,319 ........ -3,957 551,737 2,194,102 23 U.S. Treasury securities................................................ 662,228 46,155 18,961 ........ ........ 65,116 727,344 24 U.S. currency........................................................... 211,628 16,622 ........ ........ ........ 16,622 228,250 25 U.S. securities other than U.S. Treasury securities..................... 1,578,694 218,026 231,105 -6,005 ........ 443,126 2,021,820 26 Corporate and other bonds........................................... 715,196 170,539 21,019 -6,005 ........ 185,553 900,749 27 Corporate stocks.................................................... 863,498 47,487 210,086 ........ ........ 257,573 1,121,071 28 U.S. liabillities to unaffiliated foreigners reported by U.S. nonbanking concerns................................................. 453,555 9,412 ........ -1,080 -1,100 7,232 460,787 29 U.S. liabilities reported by U.S. banks, not included elsewhere......... 970,975 40,731 ........ 5,387 ........ 46,118 1,017,093 r Revised. p Preliminary. 1. Represents gains or losses on foreign currency-denominated assets due to their revaluation at current exchange rates. 2. Includes changes in coverage, statistical discrepancies, and other adjustments to the value of assets. Table 2--U.S. Direct Investment Position Abroad on a Historical-Cost Basis at Yearend [Millions of dollars] 1997 1998 All Petro- Manu- Whole- Depos- Finance Serv- Other All Petro- Manu- Whole- Depos- Finance Serv- Other industries leum facturing sale itory (except ices indus- industries leum facturing sale itory (except ices indus- trade institi- depos- tries trade institi- depos- tries tutions itory tutions itory institi- institi- tutions), tutions), insurance insurance and real and real estate estate All countries .......................................... 865,531 82,215 280,332 64,432 40,169 293,116 42,342 62,925 980,565 91,113 304,690 75,188 42,029 337,600 52,514 77,432 Canada ...................................................... 96,031 11,018 44,464 7,146 1,041 20,186 4,307 7,868 103,908 12,559 46,428 7,265 1,203 22,057 4,598 9,799 Europe ...................................................... 420,108 28,001 136,593 32,758 23,342 154,513 26,039 18,863 489,539 30,640 154,864 40,750 25,614 178,179 33,810 25,682 Austria ................................................. 2,638 (D) 913 464 (D) 117 146 -9 3,838 152 1,062 515 (D) (D) 200 -38 Belgium ................................................. 17,430 150 8,302 2,715 252 4,603 1,543 -136 18,920 156 8,969 2,716 321 5,262 1,684 -188 Denmark ................................................. 2,173 165 580 (D) (*) (D) 31 (*) 2,628 286 638 (D) (*) (D) 34 54 Finland ................................................. 1,312 (D) 776 (D) (D) (D) 64 50 1,700 104 1,004 302 20 (D) 67 (D) France .................................................. 35,800 969 17,243 2,251 2,164 8,191 4,018 963 39,188 1,162 18,974 2,587 2,388 7,778 4,570 1,729 Germany ................................................. 38,490 2,898 19,126 2,613 870 10,149 1,587 1,247 42,853 2,860 22,259 2,759 1,510 11,022 1,905 537 Greece .................................................. 634 71 114 93 154 106 56 40 660 75 91 92 166 126 59 50 Ireland ................................................. 12,862 (D) 7,271 353 (D) 4,353 371 (D) 15,936 (D) 8,090 332 (D) 6,638 305 (D) Italy ................................................... 14,809 (D) 9,657 2,175 329 721 956 (D) 14,638 (D) 8,559 2,725 334 774 1,082 (D) Luxembourg .............................................. 10,109 (D) 2,243 82 249 7,397 63 (D) 14,930 58 2,556 (D) 289 11,596 84 (D) Netherlands ............................................. 64,361 2,394 14,540 5,848 (D) 35,850 4,772 (D) 79,386 2,826 16,242 9,446 (D) 42,836 6,985 (D) Norway .................................................. 6,934 3,662 820 293 (D) 1,733 196 (D) 7,609 4,045 831 303 (D) 1,881 290 (D) Portugal ................................................ 1,425 (D) 271 459 220 308 75 (D) 1,474 (D) 335 397 239 261 98 (D) Spain ................................................... 11,232 188 6,293 1,332 2,021 574 354 469 12,807 199 7,435 1,470 2,124 694 475 411 Sweden .................................................. 5,463 82 3,273 188 465 466 948 41 6,053 79 3,359 224 (D) 782 1,009 (D) Switzerland ............................................. 31,420 727 3,976 5,392 3,357 15,847 1,736 385 37,616 15 5,508 7,831 3,695 18,446 1,651 469 Turkey .................................................. 1,041 113 535 74 150 8 35 126 1,069 97 604 (D) 224 15 46 (D) United Kingdom .......................................... 153,108 13,850 38,839 7,319 10,201 60,708 8,992 13,199 178,648 15,603 46,436 7,772 10,365 65,846 13,144 19,483 Other ................................................... 8,868 1,323 1,822 328 (D) 2,451 98 (D) 9,588 1,530 1,913 (D) (D) 3,103 124 (D) Latin America and Other Western Hemisphere .................. 178,505 9,917 46,124 6,897 4,685 87,422 5,921 17,539 196,655 9,711 48,008 7,997 3,198 98,845 6,910 21,986 South America ........................................... 68,372 7,225 29,748 2,318 3,763 10,942 2,936 11,440 73,290 6,967 30,325 1,900 4,738 11,444 3,057 14,859 Argentina ........................................... 10,004 1,426 3,479 505 1,133 1,954 842 663 11,489 1,565 3,654 340 1,801 1,945 876 1,308 Brazil .............................................. 35,091 1,888 21,848 741 1,482 4,621 1,584 2,927 37,802 1,825 22,292 508 1,667 4,728 1,664 5,118 Chile ............................................... 8,975 (D) 756 367 605 3,382 274 (D) 9,132 18 845 342 627 3,429 212 3,659 Colombia ............................................ 4,436 1,576 1,188 147 (D) 529 85 (D) 4,317 1,159 1,094 168 (D) 808 87 (D) Ecuador ............................................. 838 461 197 67 (D) 23 3 (D) 952 576 188 68 (D) 36 4 (D) Peru ................................................ 2,467 150 185 102 (D) 304 39 (D) 2,587 117 215 96 (D) 322 32 (D) Venezuela ........................................... 5,381 1,333 1,881 287 (D) 90 80 (D) 5,697 1,516 1,856 230 (D) 64 153 (D) Other ............................................... 1,181 (D) 214 102 242 38 30 (D) 1,315 192 183 148 303 112 29 348 Central America ......................................... 47,735 1,312 14,903 2,533 575 23,371 1,133 3,909 56,387 1,407 15,188 3,233 737 29,563 1,622 4,637 Costa Rica .......................................... 1,544 (D) 369 (D) 0 6 1 56 2,126 28 371 (D) 0 (D) (*) (D) Guatemala ........................................... 357 137 160 20 4 8 5 22 429 (D) 191 26 5 (D) 5 (D) Honduras ............................................ 183 21 159 2 (D) 21 0 (D) 186 (D) 190 2 5 29 0 (D) Mexico .............................................. 24,181 217 14,080 931 462 3,595 1,075 3,821 25,877 235 14,267 1,092 591 4,206 1,108 4,378 Panama .............................................. 21,056 665 100 (D) 89 19,736 (D) (D) 26,957 681 137 (D) 118 25,145 501 (D) Other ............................................... 413 (D) 35 24 (D) 4 (D) (D) 812 293 32 25 18 (D) 8 (D) Other Western Hemisphere ................................ 62,397 1,380 1,472 2,046 347 53,109 1,852 2,191 66,978 1,338 2,495 2,864 -2,277 57,837 2,230 2,490 Bahamas ............................................. 1,599 57 80 164 -315 1,535 28 51 287 58 81 150 -1,585 1,401 131 50 Barbados ............................................ 791 76 5 (D) 20 256 224 (D) 1,077 82 5 305 (D) 357 275 (D) Bermuda ............................................. 37,660 (D) (D) 1,305 0 34,614 1,453 (D) 41,076 (D) (D) 2,022 0 37,519 1,591 -15 Dominican Republic .................................. 476 (D) 321 19 34 (*) 20 (D) 535 (D) 390 (D) 58 (*) 20 (D) Jamaica ............................................. 1,948 (D) 139 (D) 15 6 33 (D) 2,105 (D) 144 (D) 11 6 39 1,660 Netherlands Antilles ................................ 4,423 (*) 27 38 4 4,355 -2 (*) 4,472 (*) 27 43 5 4,400 -3 (*) Trinidad and Tobago ................................. 651 360 62 18 (D) (D) 1 (D) 1,054 697 49 20 (D) 20 1 (D) U. K. Islands, Caribbean ............................ 14,051 223 668 102 532 11,983 72 471 15,713 308 1,628 92 -814 13,711 144 645 Other ............................................... 797 408 (D) (*) (D) (D) 23 (D) 658 236 (D) (*) (D) 422 31 (D) Africa ...................................................... 11,157 6,429 1,967 234 299 998 157 1,073 13,491 8,984 1,942 165 338 612 263 1,187 Egypt ................................................... 1,612 1,294 283 -40 134 0 -7 -52 1,955 1,423 435 -48 163 0 43 -60 Nigeria ................................................. 1,387 1,218 54 1 (D) (D) 0 4 1,925 1,696 56 1 (D) (D) 0 4 South Africa ............................................ 2,451 (D) 1,088 157 (D) 104 119 642 2,363 (D) 864 145 (D) 247 162 (D) Other ................................................... 5,706 (D) 542 116 90 (D) 45 479 7,247 (D) 587 67 108 (D) 59 (D) Middle East ................................................. 8,803 2,754 1,654 262 738 1,773 358 1,265 10,599 3,010 2,383 319 814 2,194 496 1,382 Israel .................................................. 2,028 (D) 1,492 83 0 247 (D) (D) 3,067 41 2,344 91 0 386 (D) (D) Saudi Arabia ............................................ 3,826 259 139 97 (D) 1,444 191 (D) 4,209 270 149 105 (D) 1,533 280 (D) United Arab Emirates .................................... 567 257 59 (D) (D) (D) 105 (D) 710 284 83 122 (D) (D) 137 (D) Other ................................................... 2,382 (D) -36 (D) -1 (D) (D) (D) 2,613 2,415 -193 1 -44 (D) (D) (D) Asia and Pacific ............................................ 146,610 21,228 49,529 17,135 10,064 28,224 5,560 14,870 161,797 23,228 51,065 18,692 10,862 35,714 6,438 15,798 Australia ............................................... 29,910 3,020 7,592 1,980 2,216 6,471 1,995 6,636 33,676 4,344 6,387 2,057 2,595 8,347 2,198 7,748 China ................................................... 5,071 910 2,753 353 107 619 74 254 6,348 911 3,729 372 127 771 31 407 Hong Kong ............................................... 19,267 594 2,942 4,890 1,845 3,592 1,074 4,329 20,802 600 3,122 5,054 1,637 5,007 1,009 4,373 India ................................................... 1,563 183 348 42 595 344 41 9 1,480 190 256 54 500 356 40 83 Indonesia ............................................... 6,664 4,038 363 (D) (D) 147 36 1,891 6,932 4,610 197 (D) 186 171 53 (D) Japan ................................................... 33,725 4,222 14,218 5,088 559 8,288 1,096 255 38,153 4,496 14,224 4,948 539 12,318 1,415 212 Korea, Republic of ...................................... 6,430 (D) 2,795 420 1,774 -15 (D) -52 7,365 (D) 2,940 (D) 2,251 38 446 -38 Malaysia ................................................ 6,522 1,260 4,349 180 (D) 377 90 (D) 6,193 1,027 4,199 166 393 352 84 -27 New Zealand ............................................. 6,523 451 1,043 303 (D) 3,429 73 (D) 6,136 460 1,045 274 (D) 3,169 60 (D) Philippines ............................................. 3,295 342 1,657 228 286 (D) (D) -27 3,192 283 1,634 172 288 627 187 2 Singapore ............................................... 17,864 3,446 7,007 2,549 717 3,480 569 97 19,783 2,920 8,438 3,245 727 3,769 681 4 Taiwan .................................................. 4,668 40 3,020 465 619 290 157 77 4,937 49 3,258 368 614 337 163 148 Thailand ................................................ 3,946 1,081 1,400 557 434 192 41 239 5,721 1,579 1,633 1,508 486 351 42 122 Other ................................................... 1,161 (D) 42 (D) (D) (D) 33 94 1,080 (D) 4 (D) (D) 103 28 98 International 1 ............................................. 4,317 2,869 .... .... .... .... .... 1,448 4,578 2,981 .... .... .... .... .... 1,597 * Less than $500,000 (+/-). D Suppressed to avoid disclosure of data of individual companies. Table 3.--Foreign Direct Investment Position in the United States on a Historical-Cost Basis at Yearend [Millions of dollars] 1997 1998 All Petro- Manufac- Trade Deposi- Finance, Insur- Real Other All Petro- Manufac- Trade Deposi- Finance, Insur- Real Other indus- leum turing tory except ance estate indus- indus- leum turing tory except ance estate indus- tries insti- deposi- tries tries insti- deposi- tries tutions tory tutions tory insti- insti- tutions tutions All countries ................................................... 693,207 42,085 273,122 104,348 38,118 43,413 70,492 40,060 81,570 811,756 53,254 329,346 115,039 44,785 50,858 80,378 44,436 93,661 Canada ............................................................. 69,866 3,177 27,811 5,213 2,211 5,382 7,545 7,805 10,722 74,840 2,633 26,152 6,137 2,569 7,130 7,861 9,084 13,274 Europe ............................................................. 432,622 29,750 197,819 51,916 21,902 14,071 55,421 12,756 48,989 539,906 42,771 252,893 58,033 26,725 18,914 65,745 14,303 60,522 Austria .......................................................... 1,829 (D) 298 1,116 (D) (D) (D) 5 28 4,872 (D) 365 (D) (D) (D) 1 5 (D) Belgium .......................................................... 6,438 1,221 3,529 1,677 (D) (D) (D) 56 441 9,577 (D) 4,232 1,954 (D) 306 1 51 (D) Denmark .......................................................... 2,929 5 708 1,801 (D) 136 -3 (D) (D) 3,229 4 711 2,018 (D) (D) -4 (D) 421 Finland .......................................................... 3,557 (D) 1,615 (D) (D) (D) (D) (D) (D) 4,321 (D) 2,224 1,013 (D) -45 (D) 3 (D) France ........................................................... 49,503 (D) 29,099 2,213 2,692 5,335 4,060 91 (D) 62,167 (D) 37,820 2,487 3,851 5,545 4,886 (D) 6,279 Germany .......................................................... 71,289 (D) 34,522 13,897 4,101 2,181 8,415 2,691 (D) 95,045 312 51,018 14,925 5,712 1,741 9,657 3,547 8,133 Ireland .......................................................... 10,493 639 2,748 1,090 (D) -236 (D) 29 (D) 13,227 739 4,874 (D) (D) -268 1,649 31 1,455 Italy ............................................................ 3,089 294 627 (D) 790 (D) (D) 75 144 3,830 (D) 907 1,017 1,094 (D) (D) 65 (D) Liechtenstein .................................................... 126 (D) 4 66 0 3 0 55 (D) 118 -2 (D) 65 0 1 0 47 (D) Luxembourg ....................................................... 5,363 0 2,941 (D) 0 252 (D) 157 155 20,214 0 (D) (D) 0 110 (D) (D) (D) Netherlands ...................................................... 89,570 12,949 31,565 10,881 6,025 2,642 14,377 5,922 5,209 96,904 11,505 35,109 10,302 6,473 4,301 16,844 6,612 5,757 Norway ........................................................... 3,045 (D) 1,380 (D) 13 (D) (D) 42 345 3,616 (D) 1,595 271 (D) -9 2 40 (D) Spain ............................................................ 2,266 4 587 207 1,120 108 166 (D) (D) 2,292 -3 714 238 1,135 -74 168 48 66 Sweden ........................................................... 12,842 (D) 8,576 (D) 85 (D) (D) 688 (D) 14,564 (D) 9,065 (D) (D) (D) -6 744 2,368 Switzerland ...................................................... 38,281 194 21,187 2,068 1,285 3,220 7,481 707 2,139 54,011 252 26,310 2,761 (D) 2,478 17,112 211 (D) United Kingdom ................................................... 131,315 11,680 58,342 11,764 3,227 45 18,979 2,178 25,100 151,335 26,277 64,022 13,993 3,210 1,957 14,265 1,801 25,809 Other ............................................................ 688 (D) 92 (D) 232 6 0 5 15 584 3 128 (D) 243 19 (*) 1 (D) Latin America and Other Western Hemisphere ....................................................... 33,546 3,427 3,930 2,975 3,774 5,241 6,157 3,739 4,303 32,210 4,072 4,329 2,755 3,526 4,859 5,356 4,105 3,209 South and Central America ........................................ 10,212 -783 273 445 2,994 642 (D) 329 (D) 11,916 -457 1,067 294 2,601 2,394 (D) 232 (D) Brazil ......................................................... 742 (D) -198 83 836 -3 (D) 11 -10 609 (D) -173 -49 691 (D) (D) (D) 9 Mexico ......................................................... 3,315 -8 631 468 167 334 -5 88 1,640 4,029 -9 887 500 70 2,000 2 85 494 Panama ......................................................... 6,023 -56 -7 -52 (D) 300 (D) 225 293 7,025 (D) 482 -103 (D) 284 (D) 182 350 Venezuela ...................................................... -376 (D) -44 11 293 1 1 -1 (D) -333 (D) -9 -8 268 -1 6 (D) 50 Other .......................................................... 507 (D) -109 -65 (D) 11 38 5 -7 586 27 -120 -46 (D) (D) 30 2 (D) Other Western Hemisphere ......................................... 23,333 4,211 3,657 2,530 779 4,598 (D) 3,409 (D) 20,294 4,529 3,262 2,461 924 2,465 (D) 3,873 (D) Bahamas ........................................................ 1,905 (D) 127 (D) 0 386 0 430 494 2,141 (D) 131 (D) (D) (D) 0 441 462 Bermuda ........................................................ 3,092 142 423 370 5 -40 1,280 173 738 2,674 207 552 463 5 -66 204 644 666 Netherlands Antilles ........................................... 5,722 2,689 1,217 (D) 210 89 (D) 505 69 4,727 (D) 795 767 (D) 85 0 255 70 United Kingdom Islands, Caribbean .............................. 12,022 (D) 1,867 715 564 4,169 (D) 2,386 799 10,395 1,578 1,792 632 648 (D) (D) 2,614 1,000 Other .......................................................... 593 29 24 (D) 0 -6 (D) -84 (D) 357 (D) -9 (D) 0 11 (D) -80 (D) Africa ............................................................. 1,465 (D) -14 (D) (D) (D) (*) 169 (D) 884 -4 -90 39 47 432 0 116 345 South Africa ..................................................... -33 1 -61 6 0 0 (*) 24 -2 43 2 -88 (D) 0 (D) 0 (D) (D) Other ............................................................ 1,498 (D) 47 (D) (D) (D) 0 144 (D) 841 -6 -2 (D) 47 (D) 0 (D) (D) Middle East ........................................................ 6,593 (D) 944 (D) (D) (D) 0 2,925 (D) 7,831 1,061 966 524 931 216 0 3,728 405 Israel ........................................................... 1,955 0 923 (D) 654 165 0 (D) (D) 2,459 -3 601 (D) 819 (D) 0 (D) 330 Kuwait ........................................................... 2,935 4 7 2 (D) (D) 0 (D) (D) (D) (D) 9 3 (D) (D) 0 3,657 (D) Lebanon .......................................................... -14 0 (D) -1 0 0 0 (D) 0 -19 0 (D) -1 0 0 0 (D) (*) Saudi Arabia ..................................................... 1,565 (D) 1 (D) (D) 0 0 47 (*) (D) (D) 3 (D) (D) 0 0 (D) (D) United Arab Emirates ............................................. 76 -4 -1 (*) (D) (D) 0 14 (D) 57 -5 -3 (D) (D) 0 0 13 (D) Other ............................................................ 77 (*) (D) 4 50 0 0 35 (D) 414 -5 (D) -3 48 0 0 37 (D) Asia and Pacific ................................................... 149,115 4,215 42,632 44,095 9,408 18,145 1,369 12,667 16,584 156,085 2,720 45,096 47,552 10,988 19,307 1,416 13,101 15,906 Australia ........................................................ 14,703 4,522 2,414 -55 -25 801 440 915 5,692 14,755 3,202 2,982 -41 157 (D) (D) 691 (D) Hong Kong ........................................................ 1,797 -16 316 662 213 17 0 273 332 2,097 (D) 358 615 229 (D) 1 268 619 Japan ............................................................ 125,131 212 37,356 42,493 7,550 17,019 897 10,038 9,567 132,569 234 39,918 44,981 9,043 17,445 990 10,743 9,214 Korea, Republic of ............................................... -70 (D) 48 (D) 242 (D) (D) 51 10 285 (D) 27 (D) -39 (D) (D) 45 17 Malaysia ......................................................... 298 (D) 87 18 (D) (D) 0 3 173 89 (D) 57 16 (D) (D) 0 3 196 New Zealand ...................................................... 221 (D) -25 (D) (D) 0 (D) 34 36 352 (*) 20 (D) (D) 0 (D) 71 43 Philippines ...................................................... 91 0 14 15 68 0 -6 -1 (*) 69 (*) 13 -6 73 0 -6 -2 -3 Singapore ........................................................ 3,271 20 1,047 196 95 48 (*) 1,243 623 1,813 2 244 270 117 -1 (*) 1,258 -77 Taiwan ........................................................... 2,749 -1 1,253 483 693 167 1 43 110 3,120 -2 1,505 (D) 720 125 (*) 45 (D) Other ............................................................ 924 53 122 77 556 3 3 69 42 936 57 -26 260 672 2 2 -22 -9 * Less than $500,000 (+/-). D Suppressed to avoid disclosure of data of individual companies.