📊 Summary of the New Foreign Direct Investment in the United States, 2024
Foreign direct investment (FDI) plays a crucial role in the U.S. economy, supporting jobs, innovation, and economic growth. The “New Foreign Direct Investment in the United States, 2024” report from the U.S. Bureau of Economic Analysis (BEA) provides a detailed look at the scale, sources, and impacts of new FDI in the past year. Below, I break down the key findings and trends from the report, using clear data and economic context.
Overview of 2024 FDI Trends
In 2024, new foreign direct investment expenditures in the United States totaled $151.0 billion, marking a 14.2% decrease from the revised 2023 figure of $176.0 billion. This level is also well below the annual average of $277.2 billion seen from 2014 to 2023. The majority of these expenditures—$143.0 billion—were for acquisitions of existing U.S. businesses, while $6.3 billion went to establishing new businesses and $1.8 billion to expanding existing foreign-owned businesses.
Key Points:
- 📉 FDI expenditures fell by $24.9 billion from 2023 to 2024.
- 🏢 Acquisitions remain the dominant form of FDI, making up over 94% of total expenditures.
- 📈 Planned total expenditures, including future commitments, reached $157.0 billion.
Industry, Country, and State Breakdown
- By Industry:
- 🏭 Manufacturing attracted the largest share of new FDI, with $67.7 billion (44.9% of the total). Within manufacturing, chemical manufacturing led with $23.7 billion.
- 💵 Finance and insurance received $23.2 billion.
- ⚡ Utilities saw $16.0 billion in new FDI.
- By Country:
- 🇮🇪 Ireland was the top source of new FDI, investing $30.1 billion.
- 🇨🇦 Canada followed with $23.9 billion.
- 🌍 Europe as a region contributed the most, with $96.7 billion (64% of all new investment).
- 🌏 Asia and Pacific was the second-largest region, with $23.2 billion.
- By State:
- 🤠 Texas led all states, receiving $22.8 billion in new investment.
- 🍑 Georgia and 🌴 California followed, with $16.3 billion and $12.9 billion, respectively.
Greenfield Investment Highlights
Greenfield investments—where foreign investors establish new businesses or expand existing ones—totaled $8.1 billion in 2024. The professional, scientific, and technical services sector led greenfield expenditures at $2.8 billion, especially in management and consulting services.
- 🌎 Europe led greenfield investment by region ($3.8 billion), followed by Latin America and the Asia-Pacific.
- 🏞️ Wyoming ($2.0 billion) and New Mexico ($1.4 billion) received the highest greenfield investment among states.
- 🔮 Planned total greenfield expenditures (including future commitments) were $14.1 billion.
Employment Impact
- 👷 204,200 employees worked at newly acquired, established, or expanded foreign-owned businesses in 2024.
- 🏭 Manufacturing accounted for the largest share of these jobs (73,600).
- 🇮🇪 Ireland and 🇨🇦 Canada were the leading sources of FDI-related employment, with 43,100 and 37,500 employees, respectively.
- 🌴 Florida had the highest state-level employment from new FDI (32,700), followed by Texas (18,200) and New York (14,200).
- 📈 Planned total employment (including future expansions) is projected at 213,200.
Trends and Economic Implications
- 📉 The decline in FDI expenditures reflects global economic uncertainty, tighter financial conditions, and possibly increased competition for investment among advanced economies.
- 🏭 The continued dominance of manufacturing, especially chemicals, signals ongoing interest in U.S. industrial capacity and supply chain integration.
- 🌍 The strong role of Europe, particularly Ireland, highlights the importance of transatlantic economic ties.
- 🏢 The overwhelming share of acquisitions versus greenfield investments suggests that foreign investors prefer to buy into established U.S. operations rather than start from scratch.
💡 Summary
The 2024 report shows that new foreign direct investment in the United States has slowed, with expenditures dropping to $151.0 billion—well below the previous decade’s average. Most investment continues to flow into acquisitions, especially in manufacturing, finance, and utilities. Europe, and Ireland in particular, remain key sources of FDI, while Texas, Georgia, and California are top destinations. Greenfield investment and associated job creation remain modest but important for long-term economic growth. These trends suggest that while the U.S. remains attractive for foreign investors, global headwinds and shifting strategies are shaping the FDI landscape.
References:
New Foreign Direct Investment in the United States, Bureau of Economic Analysis