Foreign Direct Investment in the United States 2025
Annual foreign direct investment flows over the past few
years brought total FDIUS to $5.7 trillion through yearend
2024, measured on a historical-cost basis. This was
an increase of 30 percent since 2019. The United States
was the world’s largest investment destination at the end
of 2024.
International companies often prefer the United States
to other overseas investment locations because it has
offered many advantages. For decades, the United States
has had one of the most open markets and investment
climates in the world. Other benefits have included:
• an unrivaled consumer market;
• a world-class system of higher education;
• a skilled and productive workforce;
• an entrepreneurial culture of innovation and risk-taking;
• a transparent regulatory environment; and,
• the world’s largest capital market.
The United States faces stiff global competition
for investment dollars; it accounted for 31
percent of the world’s inward stock of foreign
direct investment in 2024, up from 26 percent
in 2004 and 21 percent in 2014. Despite this
recent rebound, the United States’ share of
inward investment remains behind developing
countries. The European Union’s share of
worldwide FDI shrank considerably from 33
percent in 2004 to 23 percent in 2024.
International companies are investing more
in developing economies, with their share
increasing more than 10 percentage points
since 2004 to 31 percent in 2024. Large
developing economies, including China, Hong
Kong, Indonesia, and Singapore, were among
the beneficiaries. International investment in
China jumped from two percent of worldwide
investment in 2004 to seven percent last year.
International companies invested more than
$290 billion in the United States last year, less
than average over the past decade, and down
two percent from 2023. In 2024, reinvested
earnings came to more than $200 billion,
representing close to 70 percent of total inward
direct investment in the United States.
During the COVID-19 pandemic, FDIUS flows
dropped to $112 billion in 2020, the lowest
level of the past decade. They then rebounded
to $406 billion the next year. Multinational
companies headquartered abroad invested
more than $480 billion in the United States in
2015 and 2016, well above the annual average
over this past decade.
Four countries provided the majority of the
$5.7 trillion in cumulative direct investment
in the United States through the end of 2024.
Japan and Canada were the largest investors,
each constituting 14 percent of total cumulative
foreign direct investment holdings. Germany was
the third-largest investor in the United States,
accounting for 12 percent of cumulative FDIUS.
Until 2018, the United Kingdom was the largest
investor in the United States, but it has since
dropped to fourth position.
The eight countries shown in the pie chart
accounted for some three-quarters of total FDI
stock in the United States in 2024. More than 100
other countries represented the remainder.
This report shows country data by ultimate
beneficial owner, which reflects the actual
ownership of a foreign firm in the United States.
Europe is the largest regional investor in the
United States. It made up 56 percent of all foreign
investment through 2024. These figures include the
27 European Union (EU) countries and others, such
as the United Kingdom, Switzerland, Norway, and
Monaco.
The Asia and Pacific region was the second largest,
accounting for just over one-fifth of FDI stock in the
United States. Canada held 14 percent through 2024,
which was a larger share than several world regions.
Last year, South and Central America, as well as the
Caribbean and Atlantic Islands each held just two
percent of FDI stock in the United States. The Middle
East held one percent. Investment from Africa
remained tiny at $7 billion. South Africa accounted
for the majority of the continent’s cumulative
investments in the United States.
Of the top 20 countries by cumulative direct investment in the United States at year-end 2024, Denmark and Sweden both more than doubled their investment stock since 2019. During that time, the two Scandinavian countries substantially increased their investments in the U.S. wholesale trade sector.
With 70 percent growth, South Korea was the third
fastest-growing country by FDIUS between 2019 and
2024. Nearly three-quarters of its FDIUS position is
in wholesale trade. Mexico, Italy, and Canada each
increased their FDIUS stock by more than 40 percent
during the same period.
If recent trends continue, Canada will soon replace Japan as the largest investor in the United States. In stark contrast, China’s FDIUS position shrank nearly 25 percent between 2019 and 2024.
Brazil, Russia, India, China, and South Africa are
known collectively as BRICS. Despite the size of
their respective economies, combined BRICS’
investment registered less than two percent
of all foreign investment stock in the United
States through the end of 2024; as a group, its
investment dropped 15 percent from 2019. China
was the largest BRICS investor at $40 billion
through 2024. However, its investment plunged
23 percent from 2019. Russia’s small cumulative
direct investment of $3 billion in the United States
shrank more than 20 percent during the same
period.
Brazil’s FDIUS also fell more than 20 percent
from 2019, though it was the second-largest
BRICS investor in the United States, totaling $38
billion through 2024. South Africa’s cumulative
investment registered $5 billion by the end of last
year, rising about 35 percent since 2019.
International companies invest in all sectors
of the U.S. economy. At $2.4 trillion in 2024,
manufacturing accounted for 42 percent of total
foreign direct investment stock. Because the
United States has the largest and most liquid
financial markets, international companies, on a
cumulative basis, have invested heavily in the U.S.
finance and insurance industries at some $600
billion by year-end 2024.
Wholesale trade accounted for 9 percent of total
foreign direct investment at the end of 2024.
The information sector received $272 billion in
cumulative foreign direct investment through
2024, followed by professional, scientific, and
technical services. The inward investment stock
position for banking and retail each totaled
more than $200 billion last year. International
companies had invested close to $190 billion in
real estate and rental and leasing through 2024.
International companies invested $324 billion in
America’s broad petroleum sector* by the end of
2024.
Speaking of the largest industries, cumulative
FDIUS in America’s retail trade sector grew the
fastest, up nearly 55 percent to $213 billion last
year from 2019. Food and beverage stores was
its largest subsector, whose FDIUS stock more
than doubled over the past five years. Likewise,
inward stock in clothing and accessories stores
more than doubled between 2019 and 2024.
Up 33 percent over the past five years, inward
investment stock in the information sector was
the second fastest-growing industry. Software
publishing was its largest and fastest-growing
subsector (see p. 7 for more analysis).
Manufacturing, the largest industry sector by
FDIUS, also continues to be one of the fastest
growing, rising 32 percent between 2019 and
2024.
International firms invest heavily in the U.S.
manufacturing industry. Chemicals attracted
close to $830 billion in total FDI stock by the
end of 2024, representing 34 percent of all
foreign investment in domestic manufacturing
International companies spend billions annually
in the U.S. chemicals industry because it boasts a
highly educated workforce, world-class research
centers, strong intellectual property protections,
and a robust regulatory system. Two-thirds of all
FDI stock in chemicals was in pharmaceuticals
and medicines.
Multinational companies invested nearly $270
billion in the U.S. transportation equipment sector
by year-end 2024, mostly in motor vehicles, bodies
and trailers, and parts.
International investment in the computers and
electronic products segment was the third-highest
in manufacturing, at $210 billion. Beverages and
tobacco products was the fourth-largest sector by
international investment stock with nearly $190
billion through 2024.
Total foreign direct investment in America’s machinery sector doubled between 2019 and 2024, the fastest rate of growth among manufacturing sectors. Machinery’s largest subsector, ventilation, heating, air-conditioning, and commercial refrigeration equipment, surged almost 450 percent over those five years.
Investment from international firms nearly doubled in beverages and tobacco products over the past five years. Transportation equipment was the third fastest-growing manufacturing sector by FDIUS stock, rising 67 percent from 2019.
International investment stock in primary and fabricated metals rose 48 percent between 2019 and 2024, followed by computers and electronic products, which grew close to 40 percent.
International investors added $56 billion to FDIUS
stock in software publishing over the past fi ve
years, translating to a growth rate of nearly 150
percent. These companies design and sell a variety
of computer software applications.
Although U.S. software companies lead the world’s
software market, international investors are eager to
invest in this lucrative industry, with annual revenues
in the hundreds of billions of dollars and estimates
of strong future growth. International software firms have shown a keen interest in the U.S. market
because of its strong intellectual property rights laws
and enforcement.
In 2022, international software companies employed
88,400 American workers and generated $42 billion
in sales. These companies include British-owned
Sage and Sophos, and German-owned SAP AG.
Canadian, French, and Japanese software companies
also have a strong presence in the United States.
