The U.S. direct investment abroad position, or cumulative level of investment, increased $403.3 billion to $6.49 trillion at the end of 2021 from $6.09 trillion at the end of 2020, according to statistics released today by the U.S. Bureau of Economic Analysis (BEA). The increase reflected a $352.6 billion increase in the position in Europe, primarily in Ireland and the United Kingdom. By industry, holding company affiliates owned by U.S. manufacturers had the largest increase.
The foreign direct investment in the United States position increased $506.1 billion to $4.98 trillion at the end of 2021 from $4.47 trillion at the end of 2020. The increase mainly reflected a $378.4 billion increase in the position from Europe, primarily the Netherlands and the United Kingdom. By industry, affiliates in manufacturing and information accounted for the majority of the increase.
Other highlights from the direct investment statistics for 2021:
- U.S. multinational enterprises (MNEs) earned income of $542.3 billion in 2021 on their cumulative investment abroad, a 25.0 percent increase from 2020. Dividends, or repatriated profits, decreased $65.2 billion, or 21.8 percent.
- Foreign MNEs earned income of $275.3 billion in 2021 on their cumulative investment in the United States, an 82.4 percent increase from 2020.
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