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BEA’s New FDI Numbers Point to Sustained Economic Growth for the USA

August 23, 2019

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Audrey Cheng is an intern for SelectUSA

Graphic stating: FDI IN THE USA, $4.34 TRILLION, 7.1 MILLION U.S. JOBS DIRECTLY SUPPORTEDThe data is in: the United States Bureau of Economic Analysis (BEA) released the most recent numbers for global foreign direct investment (FDI) into the United States, and they’re good news for the country’s continued prosperity. Total stock of FDI in the United States reached $4.34 trillion in value in 2018. This is an incredible $319.1 billion increase from 2017, when we had just surpassed $4 trillion in FDI.

Here is a breakdown:

  • The largest increases were in the industries of manufacturing, retail trade, and real estate.
  • Manufacturing accounted for 40.8 percent of the total FDI value in the United States, followed by 12.1 percent in finance and insurance.
  • Based on the country of the ultimate beneficial owner, five countries accounted for more than half of all the FDI in the United States. These countries aren’t just top sources of FDI – they represent the strongest economic relationships in the world. In order, they are: The United Kingdom, Canada, Japan, Germany, and Ireland.
  • Majority foreign-owned companies in the United States earned income of $208.1 billion on their cumulative investment in the United States. This is nearly 20 percent higher than in 2017.

To all of us at SelectUSA, this increase in investment is an assuring pat on the back but not a surprise. It reinforces what we know: America is the premier destination in the world for FDI.

As we look back at the BEA numbers of the past fiscal year, we are also looking toward a positive future. The 2019 A.T. Kearney Confidence Index ranked the United States as the nation likely to receive the most FDI in the coming three years. The World Bank’s Doing Business 2019 named us among the top nations globally for the ease of doing business—and number one among countries with populations more than 100 million.

This shows that the United States is doing all the right things to give companies the opportunities they need to be competitive. Businesses of all sizes have recognized that our huge consumer base, productive workforce, and pro-business policies here are unparalleled anywhere else in the world.

The U.S. economy is thriving and the continued increase in FDI will create even more career opportunities for hardworking Americans into the future. SelectUSA will continue to make sure that companies have all the resources they need to be successful in the United States.

To learn more about SelectUSA’s services, the U.S. business and investment climate, and how FDI benefits the U.S. economy, visit selectusa.gov and follow @SelectUSA on Twitter.