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UNITED STATES: FDI SWINGS UPWARDS IN 2004


Press Release
For use of information media - Not an official record
UNCTAD/PRESS/EB/2005/013
UNITED STATES: FDI SWINGS UPWARDS IN 2004

Geneva, Switzerland, 17 October 2005

A remarkable rebound took place in FDI inflows into the United States (PDF): they rose from $57 billion in 2003 to $96 billion in 2004, making the country the largest FDI recipient worldwide for the first time since 2001. Reinvested earnings accounted for most of the increase, soaring from $1.5 billion in 2003 to $45 billion in 2004. Net repayments abroad of intra-company debt by foreign affiliates in the US decreased by 44% to -$17.8 billion in 2004 from -$31.7 billion in 2003. Favourable economic growth prospects and high corporate profits motivated transnational corporations to invest in the country. The US was also the largest source of FDI worldwide, registering its largest outflows ever ($229 billion) in 2004. In 2002, there was a total of 2,418 home-based TNCs in the United States with sales worth $6.426 trillion, while the total number of affiliates of foreign TNCs stood at 5,726, accounting for sales worth $2.225 trillion in 2002.

National investment profiles are being published online as they become available, based on each country´s reporting schedules. The profiles, which are part of UNCTAD´s World Investment Directory, provide quick electronic access to the latest statistics on foreign direct investment (FDI) and the operations of transnational corporations (TNCs). They also include statistical definitions and sources, a listing of relevant national laws and regulations, information on bilateral and multilateral agreements and a bibliography of the country concerned.