US FDI rises by $212.2 bn to $6.58 trillion in 2022 over 2021 figure

The increase reflected a $172.8 billion rise in the position in Europe, primarily in the Netherlands and the United Kingdom. By industry, manufacturing affiliates had the largest increase.

Foreign direct investment (FDI) in the United States increased by $216.8 billion to $5.25 trillion at the end of 2022 from $5.04 trillion at the end of 2021.

The increase mainly reflected a $142.2 billion increase in the position from Europe, with the largest increases from the United Kingdom and Germany. By industry, affiliates in manufacturing and wholesale trade accounted for the majority of the increase.

Investment by US multinational corporations (MNCs) in affiliates in five countries accounted for more than half of the total US FDI abroad at the end of 2022.

The position was largest in the United Kingdom ($1.1 trillion), followed by the Netherlands ($0.9 trillion) and Luxembourg ($0.6 trillion). Ireland ($0.6 trillion) and Canada ($0.4 trillion) rounded out the top five.

By industry of the directly owned foreign affiliate, investment was largest in holding companies, which accounted for 47.3 per cent of the overall position abroad in 2022.

Manufacturing affiliates were second largest, with 15.5 per cent, and finance and insurance affiliates were third largest, with 14 per cent, of US investment.

By industry of the US parent, investment by manufacturing MNCs accounted for 50.1 per cent of the position.

US MNCs earned income of $590.4 billion in 2022 on their cumulative investment abroad, a 3.6 per cent increase from 2021. Dividends, or repatriated profits, decreased by $19.1 billion, or 6.1 per cent, to $294.2 billion in 2022.

Japan remained the top investing country in the United States last year with $712.0 billion, followed by the United Kingdom ($663.4 billion), the Netherlands ($617.1 billion), Canada ($589.3 billion) and Germany ($431.4 billion).

FDI in the United States was concentrated in the manufacturing sector, which accounted for 42.4 per cent of the position.

Foreign MNCs earned $289.9 billion last year on their cumulative investment in the United States, a 1.7 per cent increase over the 2021 figure.

Fibre2Fashion News Desk (DS)