Balance on capital account
IEABCP • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6,942.00
Year-over-Year Change
-600.50%
Date Range
1/1/1999 - 1/1/2025
Summary
The Balance on Capital Account measures the net flow of capital into and out of the United States. It is an important indicator of international investment and economic integration.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Balance on Capital Account represents the net change in foreign ownership of U.S. assets versus U.S. ownership of foreign assets. This metric provides insight into cross-border investment flows and a country's international financial position.
Methodology
The data is collected by the U.S. Bureau of Economic Analysis through surveys of international transactions.
Historical Context
Policymakers and analysts monitor the capital account balance to assess the broader economic landscape and implications for capital markets.
Key Facts
- The U.S. has run a capital account surplus in most years since the 1980s.
- Positive capital account balances indicate more foreign investment in the U.S. than U.S. investment abroad.
- The capital account is one component of the broader U.S. balance of payments.
FAQs
Q: What does this economic trend measure?
A: The Balance on Capital Account measures the net flow of foreign direct investment, portfolio investment, and other capital transactions between the U.S. and the rest of the world.
Q: Why is this trend relevant for users or analysts?
A: The capital account balance provides insight into international investment patterns and the U.S. financial position, which is useful for policymakers, investors, and economists analyzing the broader economy.
Q: How is this data collected or calculated?
A: The U.S. Bureau of Economic Analysis collects the capital account data through surveys of international transactions and investments.
Q: How is this trend used in economic policy?
A: Policymakers monitor the capital account to assess the implications for capital markets, exchange rates, and the overall balance of payments, which can inform policy decisions.
Q: Are there update delays or limitations?
A: The capital account data is published quarterly with a lag of several months. There may also be revisions to historical data over time.
Similar IEABCP Trends
Citation
U.S. Federal Reserve, Balance on capital account (IEABCP), retrieved from FRED.