Key information about United States Direct Investment Abroad

• United States Direct Investment Abroad expanded by 96.8 USD bn in Sep 2024, compared with a growth of 59.9 USD bn in the previous quarter.
• US Direct Investment Abroad: USD mn data is updated quarterly.
• It is available from Mar 1960 to Sep 2024 and averaged 11.0 USD bn throughout the period.
• The data reached an all-time high of 167.5 USD bn in Mar 2007 and a record low of -126.9 USD bn in Dec 2018.

• In the latest reports of US, Current Account recorded a deficit of 310.9 USD bn in Sep 2024.
• Foreign Direct Investment (FDI) increased by 93.6 USD bn in Jun 2024.
• Its Foreign Portfolio Investment increased by 637.6 USD bn in Sep 2024.
• The country's Nominal GDP was reported at 6,632.4 USD bn in Mar 2023.

In 2022, foreign direct investment (FDI) from the United States to other countries amounted to 6.58 trillion U.S. dollars. Foreign direct investment reflects the ownership of business from one country in another country. It differs from a traditional investment in companies located abroad by the ownership factor in case of FDI.

Why is FDI important?

FDI has influences in the both the sending and receiving countries. In the recipient countries, FDI can be an important source of capital that might not otherwise be available. This is particularly true in less developed regions, such as in Africa. The countries which received the largest amount of foreign direct investment from the United States in 2019 were the Netherlands, the United Kingdom and Luxembourg.

FDI flows to the United States

On the other hand, the countries that sent the most FDI to the United States in 2017 were Japan, the United Kingdom and Canada. There were about 8.7 million jobs offered in the U.S. due to foreign direct investments as of 2019.

In 2022, no country had a higher foreign direct investment (FDI) position in the United States than Japan, followed by the United Kingdom and Canada. At that time, Japan had over 711 billion U.S. dollars invested in the United States.

What is FDI?

FDI is an international investment, in this case when a foreign firm or individual invests in a business in the United States. The worldwide value of FDI flows is immense, which is a result of the increasing connectedness of world financial markets. In this statistic, we see countries that are connected to the U.S. for historic and geographic reasons, such as the UK and Canada respectively, investing large sums of money in U.S. enterprises. The countries which received the most FDI from the United States in 2022 were the Netherlands, the UK, and Luxembourg.

The effects of FDI

Foreign direct investment, like any increase in capital, leads to a higher number of jobs. The economy of the target country grows, and the investing country generally earns a good rate of return. Critics of FDI worry that it opens companies to the influence of foreign individuals and firms.

This dataset provides values for FOREIGN DIRECT INVESTMENT reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

United States (FDI) Foreign Direct Investment: Income: South & Central America: Other Countries data was reported at 59.000 USD mn in Mar 2018. This records an increase from the previous number of -38.000 USD mn for Dec 2017. United States (FDI) Foreign Direct Investment: Income: South & Central America: Other Countries data is updated quarterly, averaging -0.500 USD mn from Mar 1994 (Median) to Mar 2018, with 68 observations. The data reached an all-time high of 59.000 USD mn in Mar 2018 and a record low of -50.000 USD mn in Mar 2009. United States (FDI) Foreign Direct Investment: Income: South & Central America: Other Countries data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s USA – Table US.O002: Foreign Direct Investment: By Country: Income.

The United Kingdom received the most direct investment from the United States in 2022, an amount exceeding one trillion U.S. dollars. This measurement was based on a historical-cost basis, meaning that the original cost of investment has been adjusted for inflation.

What is foreign direct investment?

Foreign direct investment (FDI) is the amount that foreign speculators invests in firms in another country. Investors from the United States have trillions of U.S. dollars in FDI invested abroad. This gives firms in those countries access to capital that they might not have otherwise enjoyed, particularly if the firms are in developing regions such as Africa. The United States is also a target country for FDI, with hundreds of billions of U.S. dollars flowing into the United States every year.

Benefits and risks

FDI generally increases the size of both economies. The host country has an inflow in capital, which should lead to a higher number of jobs and increased productivity. The investing company should benefit from the dividends of such investments. However, any investment has default risks. These risks are magnified by the regulatory uncertainty that arises from the fact that two legal systems are involved. This can lead to political pressure, particularly if trade tensions are already high.

The average for 2023 based on 173 countries was 4.49 billion U.S. dollars. The highest value was in the USA: 348.78 billion U.S. dollars and the lowest value was in the Netherlands: -309.01 billion U.S. dollars. The indicator is available from 1970 to 2023. Below is a chart for all countries where data are available.

Foreign Direct Investment (FDI) flows record the value of cross-border transactions related to direct investment during a year which consist of equity transactions, reinvestment of earnings, and intercompany debt transactions. Inward flows represent transactions that increase the investment that foreign investors have in enterprises resident in the reporting economy less transactions that decrease the investment of foreign investors in resident enterprises.

Historical chart and dataset showing U.S. foreign direct investment by year from 1970 to 2023.

United States Foreign Direct Investment Position: Outward: % of Total (FDI) Foreign Direct Investment: Total: Near and Middle East data was reported at 1.215 % in 2023. This records a decrease from the previous number of 1.218 % for 2022. United States Foreign Direct Investment Position: Outward: % of Total (FDI) Foreign Direct Investment: Total: Near and Middle East data is updated yearly, averaging 1.218 % from Dec 2020 (Median) to 2023, with 3 observations. The data reached an all-time high of 1.345 % in 2020 and a record low of 1.215 % in 2023. United States Foreign Direct Investment Position: Outward: % of Total (FDI) Foreign Direct Investment: Total: Near and Middle East data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.FDI: Foreign Direct Investment: % of Total FDI: by Region and Country: OECD Member: Annual. Reverse investment:Reverse investment in equity (when a direct investment enterprise acquires less than 10% equity ownership in its parent) cannot be identified but is believed to be extremely rare. Netting of reverse investment in debt (when a direct investment enterprise extends a loan to its parent) is applied in the recording of total inward and outward FDI transactions and positions. Treatment of debt FDI transactions and positions between fellow enterprises: directional basis according to the residency of the direct investor. FDI transactions and positions by partner country and by industry include resident Special Purpose Entities (SPEs), but they are not significant. Valuation method used for listed inward and outward equity positions: Book values. Valuation method used for unlisted inward and outward equity positions: Book value. Valuation method used for inward and outward debt positions: Book value.; FDI statistics are available by geographic allocation, vis-à-vis single partner countries worldwide and geographical and economic zones aggregates. Partner country allocation can be subject to confidentiality restrictions. Geographic allocation of inward and outward FDI transactions and positions is according to the immediate counterparty. Inward FDI positions according to the ultimate counterparty (the ultimate investing country) are also available and publishable. In the dataset 'FDI statistics by parner country and by industry - Summary', inward FDI positions are showed according to the UIC. Intercompany debt between related financial intermediaries, including permanent debt, are excluded from FDI transactions and positions. Direct investment relationships are identified according to the criteria of the Participation Multiplication Method (PMM) method. Debt between fellow enterprises are partially covered. Collective investment institutions are partially covered as direct investment enterprises. Non-profit institutions serving households are covered as direct investors. FDI statistics are available by industry sectors according to ISIC4 classification. Industry sector allocation can be subject to confidentiality restrictions. Inward FDI transactions and positions are allocated to the activity of the resident direct investment enterprise. Outward FDI transactions are allocated according to the activity of the resident direct investor. Outward FDI positions are allocated according to the activity of the non resident direct investment enterprise. Statistical unit: Local Enterprise Group.

In the last 20 years, the amount of FDI into the United States has more than doubled. In 2000, FDI was 1.26 trillion U.S. dollars, rising to 5.39 trillion U.S. dollars in 2023. Foreign direct investment (FDI) is an investment from a company in one country into a company or entity located in another country. While the United States receives huge amounts of FDI each year, it also invests large amounts in other countries. For example, in 2020 the United States invested over 890 billon U.S. dollars in the United Kingdom and another 843.95 billion U.S. dollars in the Netherlands.

United States Foreign Direct Investment: Asia and Pacific: Japan data was reported at 13.592 USD bn in Dec 2024. This records an increase from the previous number of 9.748 USD bn for Sep 2024. United States Foreign Direct Investment: Asia and Pacific: Japan data is updated quarterly, averaging 1.255 USD bn from Mar 1960 (Median) to Dec 2024, with 255 observations. The data reached an all-time high of 30.309 USD bn in Jun 2021 and a record low of -8.557 USD bn in Mar 2009. United States Foreign Direct Investment: Asia and Pacific: Japan data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s United States – Table US.O004: Foreign Direct Investment: by Country and Region: Flow.

The average for 2023 based on 18 countries was 2.65 percent. The highest value was in Nicaragua: 6.9 percent and the lowest value was in Uruguay: -0.56 percent. The indicator is available from 1970 to 2023. Below is a chart for all countries where data are available.

Turkey foreign direct investment for 2023 was 10.95 billion US dollars, a 19.87% decline from 2022.

<ul style='margin-top:20px;'>

<li>Turkey foreign direct investment for 2022 was <strong>13.67 billion US dollars</strong>, a <strong>5.98% increase</strong> from 2021.</li>
<li>Turkey foreign direct investment for 2021 was <strong>12.90 billion US dollars</strong>, a <strong>68.01% increase</strong> from 2020.</li>
<li>Turkey foreign direct investment for 2020 was <strong>7.68 billion US dollars</strong>, a <strong>19.27% decline</strong> from 2019.</li>
</ul>Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. Data are in current U.S. dollars.

Historical chart and dataset showing World foreign direct investment by year from 1970 to 2023.

This statistic shows the direct investment position of the United States in China from 2000 to 2023, on a historical-cost basis. In 2023, the U.S. investments made in China were valued at 126.91 billion U.S. dollars. Direct investment position of the United States - additional information Foreign direct investment (FDI), simply put, is an investment of one company into another company located in a different country. It differs from a traditional way of investing into shares of foreign companies listed on a stock exchange. The companies which make foreign direct investment usually own a part of the company in which they invest and they have influence on the decision making process. In the United States, FDI is defined as an American investor (called the U.S. parent) owning a minimum of 10 percent of a foreign firm (known as a foreign affiliate). The total direct position of the United States abroad amounted to 6.68 trillion U.S. dollars in 2023. Although the phenomenon profits greatly from the technological advances of the 21st century, as well as from the cultural flexibility of today’s workforce, FDI has a long history, going back to the colonial empires. Not without critics, FDI is generally believed to bring advantages to the investing company, such as access to new markets and decreased costs of labor, materials and production facilities. The local economy can benefit from an infusion of capital, access to new technologies and engagement of native labor pool. There are three recognized types of foreign direct investment, namely horizontal FDI, platform FDI and vertical FDI, along with various methods of implementing the investment itself. FDI considered by many one of the motors of worldwide economic growth. U.S. foreign investment abroad has seen a dramatic growth in the past decades. Multinational American corporations, especially focused on manufacturing, have largely invested in facilities overseas, due to financial benefits. However, a large share of these corporations focuses toward not only supplying the U.S. market, but also the local markets in which they operate. In 2020, the country that received the largest amount of U.S. foreign investment was the United Kingdom, with a little over one trillion U.S. dollars, followed by the Netherlands, and Luxembourg. Overall, the total amount of U.S. dollars invested in European states in 2021 reached 3.98 trillion U.S. dollars compared to 2.25 trillion U.S. dollars a decade prior.

After occupying the leading position by FDI investment projects in Russia in 2018, the United States listed second with 15 FDI projects in 2020, tied with China. Germany led the ranking in the last observed period with 26 FDI projects in Russia.

Foreign Direct Investment (FDI) market overview  

Net balance of foreign direct investment (FDI) flows in Russia recovered from a negative 1.3 billion U.S. dollars in 2020, to nearly 29 billion U.S. dollars in 2021. As for the number of FDI projects in the country, the figures have been in decline over the past years, shrinking twofold between 2017 and 2020. The agri-food sector was the most attractive industry for foreign direct investments in Russia. In 2020, only 42 FDI projects were signed in this sector.

Mergers and acquisitions (M&A) market in Russia 

The highest mark in the Russian mergers and acquisitions (M&A) market was observed in 2012, at 99 billion euros. Ever since, the market dynamics have been rather fluctuant, measuring at over 45 billion euros in 2021. The largest deal in that year was the acquisition of TAIF Group by SIbur holding – the leading petrochemicals company in Russia and one of the major ones worldwide – for over six billion euros.

This dataset provides values for FOREIGN BOND INVESTMENT. reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The United States were the country that invested the most in Mexico. In 2023, the investment amounted 13.76 billion U.S. dollars, down from 20.22 billion in the previous year. Mexico is one of the emerging countries most open to foreign direct investment.

This statistic shows foreign direct investments of NAFTA countries into the United States from 1994 to 2019. In 2019, there was approximately 496 billion U.S. dollars worth of direct investments in the U.S. from Canada.