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.
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.