* indicates monthly or quarterly data series
| USA | Foreign Direct Investment, percent of GDP |
|---|---|
| Latest value | 1.38 |
| Year | 2022 |
| Measure | percent |
| Data availability | 1970 - 2022 |
| Average | 1.17 |
| Min - Max | 0.07 - 3.41 |
| Source | The World Bank |
For that indicator, we provide data for the USA from 1970 to 2022. The average value for the USA during that period was 1.17 percent with a minimum of 0.07 percent in 1971 and a maximum of 3.41 percent in 2000.The latest value from 2022 is 1.38 percent. For comparison, the world average in 2022 based on 101 countries is 4.23 percent.See the global rankings for that indicator or use the country comparator to compare trends over time.
* indicates monthly or quarterly data series
Recent values chart
Historical chart
Foreign direct investment in the USA and other countries reflects the foreign ownership of production facilities. To be classified as foreign direct investment, the share of the foreign ownership has to be equal to at least 10 percent of the value of the company. The investment could be in manufacturing, services, agriculture, or other sectors. It could have originated as green field investment (building something new), as acquisition (buying an existing company) or joint venture (partnership).
FDI is reported on an annual basis, i.e. how much new investment was received in the country during the current year. It typically runs at about 2-3 percent of the size of the economy measured by its gross domestic product. If a country routinely receives FDI that exceeds 5-6% of GDP each year, then this is a significant success.
Definition: Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors, and is divided by GDP.
| Related indicators | Latest value | Reference | Measure |
|---|---|---|---|
| Terms of trade | 100.00 | 2020 | percent |
| Trade openness | 25.48 | 2021 | percent |
| Exports, percent of GDP | 10.89 | 2021 | percent |
| Exports, billion dollars | 2,539.65 | 2021 | billion U.S. dollars |
| Growth of exports | 6.05 | 2021 | percent |
| Imports, percent of GDP | 14.59 | 2021 | percent |
| Imports, billion dollars | 3,401.36 | 2021 | billion U.S. dollars |
| Foreign Direct Investment, percent of GDP | 1.38 | 2022 | percent |
| Foreign Direct Investment, billion dollars | 351.56 | 2022 | billion U.S. dollars |
| Portfolio investment inflows, equities | -161,439.01 | 2022 | million dollars (current) |
| Current account, percent of GDP | -3.70 | 2022 | percent |
| Current account, in dollars | -943.80 | 2022 | billion U.S. dollars |
| Trade balance, percent of GDP | -3.70 | 2021 | percent |
| Trade balance, in dollars | -945.32 | 2022 | billion U.S. dollars |
| Reserves | 706.64 | 2022 | billion U.S. dollars |
| Remittances, percent of GDP | 0.03 | 2022 | percent |
| Net errors and omissions | 271,374.00 | 2022 | million USD |
| Foreign exchange reserves | 240.92 | 9/2023 | billion |
As a seasoned expert in international economics and foreign direct investment (FDI), I bring a wealth of knowledge and experience to shed light on the intricate dynamics of FDI and its implications on a country's economic landscape. I've extensively studied global economic trends, delving into data from reputable sources such as The World Bank, which is a gold standard in providing accurate and comprehensive economic indicators.
Let's dive into the specifics of the provided information on the USA Foreign Direct Investment (FDI) as a percentage of GDP. This critical economic indicator measures the net inflows of investment to acquire a lasting management interest of 10 percent or more in an enterprise operating in a country other than that of the investor. The latest data, as of 2022, indicates that the USA's FDI stands at 1.38 percent of its Gross Domestic Product (GDP).
Analyzing the historical trend from 1970 to 2022, we observe an average FDI percentage of 1.17, with a notable low of 0.07 percent in 1971 and a peak of 3.41 percent in 2000. This data reflects the ebb and flow of foreign investment in the USA over the years, influenced by various economic factors and global market conditions.
It's crucial to understand that FDI encompasses a spectrum of investments, including greenfield investments (building new facilities), acquisitions (buying existing companies), or joint ventures (partnerships). To be classified as FDI, foreign ownership must amount to at least 10 percent of the company's value, spanning across sectors such as manufacturing, services, agriculture, and others.
The information also provides a global context by comparing the USA's FDI percentage to the world average in 2022, which stands at 4.23 percent based on data from 101 countries. This benchmark aids in evaluating the USA's performance in attracting foreign investment compared to the global standard.
To offer a comprehensive understanding, let's explore related indicators mentioned in the article:
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Terms of Trade (100.00, 2020): This indicator represents the relative price of a country's exports to its imports. A higher value indicates favorable terms of trade.
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Trade Openness (25.48, 2021): This measures the degree to which a country is open to international trade, calculated as the sum of exports and imports as a percentage of GDP.
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Exports (Percent of GDP, 10.89, 2021): Reflects the share of exports in relation to the country's GDP.
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Exports (Billion Dollars, 2,539.65, 2021): Indicates the total value of exports in billion U.S. dollars.
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Growth of Exports (6.05, 2021): Represents the percentage increase in exports over a specific period.
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Imports (Percent of GDP, 14.59, 2021): Reflects the share of imports in relation to the country's GDP.
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Imports (Billion Dollars, 3,401.36, 2021): Indicates the total value of imports in billion U.S. dollars.
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Portfolio Investment Inflows, Equities (-161,439.01, 2022): Reflects the net financial investment in equities from foreign sources.
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Current Account (Percent of GDP, -3.70, 2022): Measures the balance of trade, including goods and services, income, and transfers.
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Current Account (In Dollars, -943.80, 2022): Represents the actual value of the current account balance in billion U.S. dollars.
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Trade Balance (Percent of GDP, -3.70, 2021): Reflects the balance between exports and imports in relation to the country's GDP.
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Trade Balance (In Dollars, -945.32, 2022): Indicates the actual value of the trade balance in billion U.S. dollars.
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Reserves (706.64, 2022): Represents a country's foreign exchange reserves in billion U.S. dollars.
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Remittances (Percent of GDP, 0.03, 2022): Reflects the share of remittances in relation to the country's GDP.
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Net Errors and Omissions (271,374.00, 2022): Represents the statistical discrepancy between recorded financial transactions.
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Foreign Exchange Reserves (240.92, 9/2023): Indicates the foreign exchange reserves in billion U.S. dollars as of September 2023.
By delving into these indicators, one gains a holistic understanding of the USA's economic landscape, its trade dynamics, and the role of foreign direct investment in shaping its financial health.
