Foreign Direct Investment by Country and Industry, 2017

The U.S. nonstop finance overseas position, aliases cumulative level of investment, accrued $427.3 cardinal to $6,013.3 cardinal astatine nan extremity of 2017 from $5,586.0 cardinal astatine nan extremity of 2016, according to statistic released by nan Bureau of Economic Analysis (BEA). The summation chiefly reflected a $243.6 cardinal summation successful nan position successful Europe, chiefly successful Switzerland, nan United Kingdom, Ireland, and nan Netherlands. By industry, affiliates successful manufacturing and holding companies accounted for nan largest increases.

The foreign nonstop finance successful nan United States position accrued $260.4 cardinal to $4,025.5 cardinal astatine nan extremity of 2017 from $3,765.1 cardinal astatine nan extremity of 2016. The summation chiefly reflected a $128.2 cardinal summation successful nan position from Europe, chiefly Ireland, Switzerland, and nan Netherlands. By industry, affiliates successful manufacturing and wholesale waste and acquisition accounted for nan largest increases.

The summation successful nan U.S. nonstop finance position overseas successful 2017 chiefly reflected financial transactions of $300.4 billion, chiefly reinvestment of earnings. The summation successful nan overseas nonstop finance position successful nan United States successful 2017 chiefly reflected financial transactions of $277.3 billion, chiefly equity finance different than reinvestment of earnings.

U.S. nonstop finance overseas (tables 1 – 4)

U.S. multinational enterprises (MNEs) put successful astir each country, but their finance successful overseas affiliates successful 5 countries accounted for much than half of nan full position astatine nan extremity of 2017. The U.S. nonstop finance overseas position was largest successful nan Netherlands astatine $936.7 billion, followed by nan United Kingdom ($747.6 billion), Luxembourg ($676.4 billion), Ireland ($446.4 billion), and Canada ($391.2 billion).

By manufacture of nan contiguous overseas affiliate, finance was highly concentrated successful holding companies, which accounted for astir half of nan position successful 2017. By manufacture of nan U.S. parent, finance by manufacturing MNEs accounted for 55.6 percent of nan position, followed by MNEs successful finance and security (12.4 percent).

U.S. MNEs earned income of $470.9 cardinal connected their finance overseas successful 2017.

Foreign nonstop finance successful nan United States (tables 5 – 8)

By state of nan contiguous overseas parent, 5 countries accounted for much than half of nan full position astatine nan extremity of 2017. The United Kingdom was nan apical investing state pinch a position of $540.9 billion, followed by Japan ($469.0 billion), Canada ($453.1 billion), Luxembourg ($410.7 billion), and nan Netherlands ($367.1 billion).

By state of nan eventual beneficial proprietor (UBO), nan apical 5 countries successful position of position were nan United Kingdom ($614.9 billion), Canada ($523.8 billion), Japan ($476.9 billion), Germany ($405.6 billion), and Ireland ($328.7 billion). On this basis, finance from nan Netherlands and Luxembourg was overmuch little than by state of overseas parent, indicating that overmuch of nan finance from these countries was yet owned by investors successful different countries.

Foreign nonstop finance successful nan United States was concentrated successful nan U.S. manufacturing sector, which accounted for 39.9 percent of nan position. There was besides sizable finance successful finance and security (13.4 percent).

Foreign MNEs earned income of $173.8 cardinal connected their finance successful nan United States successful 2017.

Next release: July 2019
Direct Investment by Country and Industry: 2018

Additional Information

Resources

• More statistic connected nonstop finance by state and manufacture are disposable connected nan BEA website.
• A explanation of nan estimation methods utilized to compile statistic connected nonstop finance by state and manufacture is provided successful U.S. International Economic Accounts: Concepts and Methods.
• Stay informed astir BEA developments by reference nan BEA blog, signing up for BEA's email subscription service, aliases pursuing BEA connected Twitter @BEA_News.
• Historical clip bid for these estimates tin beryllium accessed successful BEA's interactive information application.
• Summary information by state are disposable successful BEA's International Trade and Investment Country Facts.
• Access BEA information by registering for BEA's Data Application Programming Interface (API).
• Additional accusation connected nonstop finance positions will beryllium published successful nan August rumor of nan Survey of Current Business.

Definitions

Direct investment is an finance by an entity resident successful 1 system that represents a lasting interest, defined arsenic 10 percent aliases much voting ownership, successful an endeavor resident successful different economy.

A foreign affiliate is simply a overseas business endeavor that is astatine slightest 10 percent owned by a azygous U.S. personification aliases entity.

A U.S. parent is simply a U.S. personification aliases entity that owns 10 percent aliases much of a overseas business enterprise.

A U.S. affiliate is simply a U.S. business endeavor that is astatine slightest 10 percent owned by a azygous overseas personification aliases entity.

A foreign parent is nan first personification aliases entity extracurricular nan United States successful a U.S. affiliate's ownership concatenation that has a nonstop finance liking successful nan affiliate.

The ultimate beneficial proprietor (UBO) is that personification aliases entity, proceeding up a U.S. affiliate's ownership chain, that is not owned much than 50 percent by different personification aliases entity.

The direct finance position is nan worth of nonstop investors' equity in, and nett outstanding loans to, their affiliates. Changes successful nan position consequence from financial transactions and different changes, including superior gains and losses, currency-translation adjustments, and different changes successful measurement and valuation, specified arsenic adjustments to book worth from affiliates' existent waste aliases acquisition price.

Direct finance financial transactions are financial transactions that summation aliases alteration financial claims and liabilities betwixt nan genitor group and their affiliates. Direct finance financial transactions dwell of reinvestment of earnings, equity finance different than reinvestment of earnings, and finance successful indebtedness instruments.

Reinvestment of earnings is nan quality betwixt an affiliate's full net little dividends. It represents nan portion of net that are reinvested successful nan connection alternatively than repatriated to nan parent.

Equity finance different than reinvestment of earnings is measured arsenic nan quality betwixt equity increases and decreases. Equity increases are transactions that consequence successful nan genitor expanding their equity liking successful their affiliate. Equity decreases are transactions that consequence from nan genitor reducing their equity liking successful their affiliate.

Debt instruments investment reflects genitor group lending to and borrowing from their affiliates.

Income earned connected nonstop finance includes income connected equity—whether profits aliases losses and whether distributed aliases reinvested—and nett liking connected debt.

Statistical conventions

BEA's nonstop finance statistic are chiefly based connected information reported successful nan Quarterly Survey of U.S. Direct Investment Abroad (BE-577) and nan Quarterly Survey of Foreign Direct Investment successful nan United States (BE-605). Both surveys are conducted by BEA.

The countries identified successful this merchandise bespeak nan location of nan contiguous counterpart, unless different noted. The countries identified for nan U.S. nonstop finance overseas position whitethorn not bespeak nan eventual destination of nan funds. Likewise, nan countries identified for nan overseas nonstop finance position successful United States whitethorn not bespeak nan eventual root of nan funds, which is often nan eventual beneficial owner.

The nonstop finance positions successful this merchandise are weighted astatine humanities cost. Positions bespeak nan book worth of nonstop investors' equity in, and nett outstanding loans to, their affiliates. This valuation is derived principally from nan accounting records of affiliates, which are chiefly compiled nether U.S. Generally Accepted Accounting Principles (GAAP) aliases International Financial Reporting Standards (IFRS). This differs from nan marketplace worth measurement featured successful nan U.S. nett world finance position accounts.

This merchandise presents statistic connected a directional ground alternatively than nan connected nan asset/liability ground featured successful nan U.S. world transactions accounts and nan U.S. nett world finance position accounts. On a directional basis, nonstop finance claims and liabilities are classified according to whether nan nonstop investor is simply a U.S. resident aliases a overseas resident. U.S. nonstop finance overseas occurs betwixt a U.S. genitor and its overseas affiliates. Foreign nonstop finance successful nan United States occurs betwixt a overseas genitor and its U.S. affiliates. On an asset/liability basis, nonstop finance statistic are organized according to whether nan finance relates to an plus aliases liability for U.S. parents aliases for U.S. affiliates of overseas parents.