Archive for the 'Direct Investment' Category

Detailed Direct Investment Data Now Available for 2013

The U.S. Bureau of Economic Analysis (BEA) has released additional statistics on U.S. direct investment abroad – or “outward direct investment” – and on foreign direct investment in the United States – or “inward direct investment” for 2013 and revised statistics for 2011 and 2012.

These newly released statistics provide comprehensive data on direct investment by country and industry for financial transactions, equity, debt instruments, reinvestment of earnings, and income. Statistics are also now available for positions, financial transactions, and income for all countries and industries where direct investment is present, for both inward and outward.

An upcoming article in the September Survey of Current Business will present these statistics as well as additional statistics, such as reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.

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Direct Investment Positions for 2013 Now Available

Both outbound and inbound U.S. foreign direct investment continued to grow in 2013. The U.S. direct investment position abroad valued at historical cost increased to $4,660.9 billion from $4,384.7 billion in 2012.  The foreign direct investment position in the United States valued at historical cost increased to $2,764.0 billion from $2,605.8 billion in 2012.

Inward Direct Investment Outward Direct Investment

The U.S. Bureau of Economic Analysis (BEA) has released detailed statistics on U.S. direct investment abroad – or “outward direct investment”­­­– and on foreign direct investment in the United States – or “inward direct investment”.  These statistics cover direct investment positions at historical-cost (book value) on a directional basis, by country and industry. On a directional basis, direct investment claims and liabilities are classified according to whether the direct investor is a U.S. resident or a foreign resident. On this basis, outward investment occurs between a U.S. parent company and its foreign affiliates, and inward direct investment occurs between a foreign company and its U.S. affiliates. In each case, the position measures the parent’s net financial claims on its affiliates.

These statistics provide data on direct investment by country and by industry.  For outward investment, the statistics provide information for major countries and industries in which U.S. companies have invested directly and are classified by the country and industry of the foreign affiliate.

For inward investment, the statistics provide information for major countries from which there is direct investment.  These statistics are classified by the country of the foreign parent—that is, the country of the investor with a direct investment in the U.S. affiliate.  Statistics on inward investment classified by the country of the investor who ultimately controls the investment, called the ultimate beneficial owner, are also available.

By providing this additional detail, these statistics enhance the International Transactions Accounts released in June 2014 and the upcoming International Investment Position statistics.

For 2011-2012, the statistics reflect the incorporation of new or revised data from BEA’s quarterly surveys of transactions between parents (both U.S. and foreign) and their affiliates, along with annual surveys of financial and operating data for U.S. parent companies and their foreign affiliates and for U.S. affiliates of foreign companies.

Upcoming articles in the July and September Survey of Current Business will present these statistics as well as additional statistics, such as related financial transactions and income, statistics for all countries and industries, reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.

Value of Both Foreign Investments in the United States and U.S. Investments Abroad Increased in Fourth Quarter 2013

The U.S. net international investment position was -$4,577.5 billion (preliminary) at the end of the fourth quarter of 2013 as the value of foreign investments in the United States exceeded the value of U.S. investments abroad. At the end of the third quarter, the net position was -$4,171.8 billion (revised).

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• The $405.7 billion decrease in the net position reflected a $777.8 billion increase in the value of foreign-owned assets in the United States that exceeded a $372.1 billion increase in the value of U.S.-owned assets abroad.
• The U.S. net international investment position decreased 9.7 percent in the fourth quarter, compared with a 6.4-percent increase in the third quarter and an average quarterly decrease of 6.3 percent from the first quarter of 2011 through the third quarter of 2013.
• The decrease in the net position in the fourth quarter was attributable to the valuation changes of foreign-owned assets in the United States that were $211.7 billion larger than the valuation changes of U.S.-owned assets abroad, and net inflows of $194.0 billion.
• U.S.-owned assets abroad were $21,963.8 billion at the end of the fourth quarter compared with $21,591.7 billion at the end of the third quarter.
• Foreign-owned assets in the United States were $26,541.3 billion at the end of the fourth quarter compared with $25,763.5 billion at the end of the third quarter.

Read the full report.