The increase reflects a $172.8 billion increase in location in Europe, primarily in the Netherlands and the UK. By industry, manufacturing branches had the largest increase.
Foreign direct investment (FDI) into 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.
U.S. foreign direct investment (FDI) increased by $212.2 billion to $6.58 trillion at the end of last year from $6.37 trillion at the end of 2021. The largest FDI was in the United Kingdom, followed by the Netherlands and Luxembourg. FDI into 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 reflects a $142.2 billion increase in location from Europe, with the largest increases from the UK and Germany. By sector, affiliates in the manufacturing and wholesale trade sectors accounted for most of the increase.
Investments by US multinational corporations (MNCs) in branches in five countries accounted for more than half of total US FDI abroad at the end of 2022.
The largest position belongs to 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) make the top five.
By sector of directly owned foreign branch, the largest investment is in parent companies, accounting for 47.3% of total overseas position in 2022.
The manufacturing affiliates are the second largest, with 15.5%, and the finance and insurance branches the third, with 14% US investment.
By industry of the US parent company, investment by manufacturing MNCs accounted for 50.1% of positions.
U.S. multinationals earned $590.4 billion in income in 2022 from their cumulative investments abroad, up 3.6% from 2021. Dividends or repatriated profits fell $19.1 billion, or 6.1 percent, to $294.2 billion in 2022.
Japan remained the top investor 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 into the US focused on the manufacturing sector, accounting for 42.4% of positions.
Foreign multinationals made $289.9 billion last year on their cumulative investment in the United States, up 1.7 percent from the 2021 figure.
Fiber2Fashion (DS) News Desk
