The U.S. direct investment abroad position, or cumulative level of investment, increased $244.9 billion to $6.15 trillion at the end of 2020 from $5.91 trillion at the end of 2019, according to statistics released by the Bureau of Economic Analysis (BEA). The increase reflected a $158.8 billion increase in the position in Europe, primarily in the United Kingdom and the Netherlands. By industry, holding company affiliates owned by U.S. manufacturers had the largest increase.
The foreign direct investment in the United States position increased $187.2 billion to $4.63 trillion at the end of 2020 from $4.44 trillion at the end of 2019. The increase mainly reflected a $119.2 billion increase in the position from Europe, primarily Germany. By industry, affiliates in manufacturing, finance and insurance, and wholesale trade accounted for the majority of the increase.
Other highlights from the direct investment statistics for 2020:
- U.S. MNEs earned income of $452.0 billion in 2020 on their cumulative investment abroad, a 13.0 percent decrease from 2019. Dividends, or repatriated profits, decreased $124.6 billion, or 30.7 percent.
- Foreign MNEs earned income of $151.8 billion on their cumulative investment in the United States, a 24.1 percent decrease from 2019.
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