The U.S. direct investment abroad position, or cumulative level of investment, increased by $364.0 billion to $6.68 trillion at the end of 2023, according to statistics released today by the U.S. Bureau of Economic Analysis. The increase reflected a $147.1 billion rise in the position in Europe, primarily in Ireland, Switzerland, and the Netherlands. By industry, holding company affiliates had the largest increase.
The foreign direct investment in the United States position increased by $227.0 billion to $5.39 trillion at the end of 2023. This increase mainly reflected a $96.0 billion rise from Canada and an $86.1 billion increase from Europe, primarily a $58.9 billion increase from Germany. By industry, affiliates in manufacturing saw the most significant growth, increasing by $58.6 billion to a total investment position of $2.22 trillion.
U.S. multinational enterprises (MNEs) invest globally; however, their investments in affiliates in five countries accounted for more than half of the total U.S. direct investment abroad position at the end of 2023: United Kingdom ($1,057.6 billion), Netherlands ($980.4 billion), Luxembourg ($532.5 billion), Ireland ($491.2 billion), and Canada ($451.6 billion).
By industry of directly owned foreign affiliates, investment was largest in holding companies (48.8 percent). Manufacturing affiliates were second (14.9 percent), followed by finance and insurance affiliates (13.6 percent). By industry of U.S parent companies, manufacturing MNEs accounted for 50% percent of positions abroad while finance and insurance MNEs accounted for 15%.
U.S MNEs earned income totaling $5772billion on their cumulative investments abroad which is a 23% increase from 2022 dividends or repatriated profits decreased$611billion or176%to$2853billion
Foreign direct investment into US was dominated by four countries accounting for half overall positions: Netherlands($7175billion) Japan($6881billion) Canada($6716billion) UK($6301billion)
Japan remained top investing country based on ultimate beneficial owner(UBO)$7833bn followed closely behind Canada$7496bn Germany moved up replacing UK as third-largest investing country under this metric
Table A shows updates previously published statistics reflecting newly available revised source data
---