UN reveals massive outflow of investment from US

The United States, which considers itself the world’s strongest economy, has for several years been suffering from the loss of foreign investors who are betting on American competitors

According to a UN report, foreign direct investment in the US last year halved to $134 billion. China, meanwhile, was able to attract 4% more foreign investment. In 2020, they amounted to $163 billion.

Last year was the first year in history when foreign direct investment in China exceeded that of the USA. Moreover, China is by far the world’s largest recipient of foreign investment.

According to the US Department of Commerce, foreign injections into the US economy peaked at $440 billion in 2015. Since then, the amount has fallen precipitously. Growing global economic uncertainty has also contributed to the decline.

In 2020, the decline in foreign direct investment in the US was most pronounced in wholesale trade, financial services and manufacturing. International mergers and acquisitions and sales of US assets to foreign investors fell by 41%.

Meanwhile, China’s rapid economic growth and rapid post-pandemic recovery helped to spur foreign investment in the country. China’s economy grew by 2.3% over 2020, when most major economies faced contraction.

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