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EMBARGOED UNTIL RELEASE AT 08:30 a.m. EDT, Friday, July 12, 2024 Technical: Media: Jason Sutterley Ryan Smith Connie O’Connell 301-278-9548 301-278-9246 301-278-9003 BEA 24–31 Jason.Sutterley@bea.gov Ryan.Smith@bea.gov Connie.OConnell@bea.gov New Foreign Direct Investment in the United States, 2023 Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $148.8 billion in 2023 (chart 1), according to preliminary statistics released today by the U.S. Bureau of Economic Analysis. Expenditures decreased $57.4 billion, or 28 percent, from $206.2 billion (revised) in 2022 and were below the annual average of $265.6 billion for 2014–2022. As in previous years, acquisitions of existing U.S. businesses accounted for most of the expenditures. In 2023, expenditures for acquisitions were $136.5 billion, expenditures to establish new U.S. businesses were $7.4 billion, and expenditures to expand existing foreign-owned businesses were $5.0 billion. Planned total expenditures, which include both first-year and planned future expenditures, were $175.9 billion (table 1.2). In 2023, employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 110,000 employees (table 4.2). Billions of dollars Chart 1. New Foreign Direct Investment by Type, 1999–2023 500 450 400 350 300 250 Expansions* 200 Establishments 150 Acquisitions 100 50 0 * Expansions are included in 2014 to present. Note. The survey used to produce these statistics was not conducted between 2009 and 2013. U.S. Bureau of Economic Analysis Page 1 of 5 Expenditures by industry, country, and state (tables 1.2, 2.2, and 3.2) By industry, expenditures for new direct investment were largest in transportation and warehousing, but its value is suppressed due to confidentiality requirements. 1 The manufacturing sector, at $42.9 billion, accounted for 28.8 percent of total expenditures. Within manufacturing, expenditures were largest in chemical manufacturing ($17.8 billion) and electrical equipment, appliances, and components ($6.6 billion). There were also notable expenditures in professional, scientific, and technical services ($16.0 billion). The country 2 with the largest investment was Canada, with expenditures of $53.4 billion. Japan ($14.6 billion) was second, followed by Sweden ($8.4 billion). By region, Europe contributed 33.8 percent of new investment in 2023. By state, Missouri received the most investment in 2023, but its value is suppressed due to confidentiality requirements. California received the second-most investment ($12.8 billion), followed by New Jersey ($12.1 billion) and Texas ($10.1 billion). Greenfield expenditures (tables 1.2, 2.2, and 3.2) Greenfield investment expenditures—expenditures to establish a new U.S. business or to expand an existing foreign-owned U.S. business—were $12.4 billion in 2023. By industry, greenfield expenditures were largest in manufacturing, totaling $8.9 billion, led by electrical equipment, appliances, and components ($2.7 billion), which includes batteries. By region of investor, Asia and Pacific ($8.8 billion) and Europe ($2.1 billion) had the largest expenditures. By U.S. region, the Southeast received the highest level of greenfield investment ($6.0 billion). 3 Total planned expenditures for greenfield investment initiated in 2023, which include both first-year and future expenditures, were $39.5 billion. By industry, total planned expenditures for greenfield investment were largest in manufacturing, with expenditures of $35.1 billion, primarily electrical equipment, appliances, and components, which includes batteries. By region of investor, Asia and Pacific had the largest total planned expenditures. By U.S. region, the Southeast had the largest total planned expenditures. Employment by industry, country, and state (tables 4.2, 5.2, and 6.2) In 2023, current employment of acquired enterprises was 106,100. Total planned employment, which includes the current employment of acquired enterprises, the planned employment of newly established business enterprises when fully operational, and the planned employment associated with expansions, was 132,500. By industry, manufacturing accounted for the largest number of current employees (25,100). Within manufacturing, employment was largest in food manufacturing (7,900) and chemicals manufacturing (5,200). By country, Canada (28,000), the United Kingdom (23,500), and Germany (13,000) accounted BEA is required by law to publish its survey-based statistics in a manner that does not disclose the identity of any survey respondent. 2 As measured by country of ultimate beneficial owner (UBO; see Additional Information for a description). 3 U.S. region is highlighted rather than U.S. state due to confidentiality requirements. 1 Page 2 of 5 for the largest number of employees. By state, California (12,800) had the largest employment resulting from new investment, followed by Texas (8,200) and New York (7,900). Table 1. Updates to 2022 Expenditures for New Foreign Direct Investment in the United States (Billions of dollars) Previously published Revised First-year expenditures U.S. businesses acquired U.S. businesses established U.S. businesses expanded 177.5 169.4 3.8 4.4 206.2 193.1 5.2 7.9 Planned total expenditures U.S. businesses acquired U.S. businesses established U.S. businesses expanded 255.1 169.4 28.2 57.6 292.4 193.1 31.0 68.3 U.S. Bureau of Economic Analysis Next release: July 2025 New Foreign Direct Investment in the United States, 2024 Page 3 of 5 Additional Information Resources • • • • • • • • • Additional data on the expenditures and activities of newly acquired, established, or expanded U.S. businesses are available on BEA’s website. Stay informed about BEA developments by reading The BEA Wire, signing up for BEA’s email subscription service, or following @BEA_News on X, formerly known as Twitter. Historical time series for these estimates can be accessed in BEA’s Interactive Data Application. Access BEA data by registering for BEA’s Data Application Programming Interface. For upcoming economic indicators, see BEA’s news release schedule. For more information about the survey of new foreign investment in the United States and the statistics produced from it, see “New Foreign Direct Investment in the United States in 2021” in the Survey of Current Business, BEA’s online journal. Additional information on new foreign direct investment in the United States in 2022 will be published in August in the Survey. More information on foreign direct investment statistics is provided in U.S. International Economic Accounts: Concepts and Methods. See the FAQ “What is the relationship between BEA’s new investment statistics and its other statistics on foreign direct investment in the United States?” for a comparison of BEA’s new investment statistics and its other statistics on foreign direct investment in the United States. Definitions Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise resident in another economy. Ownership or control of 10 percent or more of the voting securities of an entity in another economy is the threshold for separating direct investment from other types of investment. A U.S. affiliate is a U.S. business enterprise that is at least 10 percent owned by a single foreign person or entity. A foreign parent is the first person or entity outside the United States in a U.S. affiliate’s ownership chain that has a direct investment interest in the affiliate. The ultimate beneficial owner (UBO) is that person or entity, proceeding up a chain of majority ownership (where the entity above owns more than 50 percent of the entity below), beginning with and including the foreign parent, that is not owned more than 50 percent by another person. Unlike the foreign parent, the UBO of an affiliate may be located in the United States. An acquisition occurs when a foreign entity acquires a voting interest (directly, or indirectly through an existing U.S. affiliate) of at least 10 percent in a U.S. business enterprise. Acquisitions of additional voting interest in existing U.S. affiliates in which a foreign entity already has a 10 percent voting interest are excluded. An establishment occurs when a foreign entity, or an existing U.S. affiliate of a foreign entity, establishes a new legal entity in the United States in which the foreign entity owns 10 percent or more of the new business enterprise’s voting interest. An expansion occurs when an existing U.S. affiliate of a foreign parent expands its operations to include a new facility where business is conducted. Greenfield investment includes establishments and expansions. Statistical conventions The statistics of new investments by foreign direct investors are based on data reported in the Survey of New Foreign Direct Investment in the United States (BE–13), conducted by BEA. The statistics include transactions resulting from corporate inversions. A corporate inversion occurs when a U.S. corporation that is currently the ultimate owner of its worldwide operations takes steps to become a subsidiary of a foreign corporation. BEA’s direct investment surveys do not collect information on whether a U.S. corporation became foreign owned as a result of a corporate inversion. Using publicly available information, such as commercial databases and press reports, BEA estimates that newly inverted U.S. corporations accounted for a significant share of first-year expenditures in 2015 but not in subsequent years. For more information on how corporate inversions affect the new investment statistics, see “New Foreign Direct investment in the United States in 2016” in the Survey. Related statistics Page 4 of 5 Statistics on new foreign direct investment are one part of a broader set of U.S. International Economic Accounts that, taken together, provide a comprehensive, integrated, and detailed picture of U.S. international economic activities. Statistics on direct investment and multinational enterprises (MNEs) include annual statistics on the activities of U.S. MNEs and U.S. affiliates of foreign MNEs as well as detailed annual and quarterly statistics on direct investment. The International Investment Position (IIP) Accounts are released quarterly. The IIP is a statistical balance sheet that presents the dollar value of U.S. financial assets and liabilities with respect to foreign residents at a specific point in time. The International Transactions Accounts (ITAs) are released quarterly. The ITAs are a statistical summary of economic activity between U.S. residents and the residents of other countries. Statistics on international services, released annually, include detailed annual information on trade in services and on services supplied through the channel of direct investment by affiliates of MNEs. U.S. international trade in goods and services, released by BEA and the U.S. Census Bureau, provides monthly statistics on trade in goods and services. News release tables Table 1.1 and 1.2. First-Year Expenditures and Planned Total Expenditures, Industry of Affiliate by Type of Investment Table 2.1 and 2.2. First-Year Expenditures and Planned Total Expenditures, Country of UBO by Type of Investment Table 3.1 and 3.2. First-Year Expenditures and Planned Total Expenditures, State by Type of Investment Table 4.1 and 4.2. Current and Planned Employment of U.S. Businesses Acquired, Established, and Expanded, Industry of Affiliate by Type of Investment Table 5.1 and 5.2. Current and Planned Employment of U.S. Businesses Acquired, Established, and Expanded, Country of UBO by Type of Investment Table 6.1 and 6.2. Current and Planned Employment of U.S. Businesses Acquired, Established, and Expanded, State by Type of Investment Page 5 of 5