German-Based Siemens and Chromalloy (US) Invest in New Joint Venture
German-based Siemens and Chromalloy announced their joint venture in Tampa, FL.
Foreign direct investment in the United States, known as FDIUS, reached $3.7 trillion through 2016 on a historical-cost basis. Every year foreign firms make new investments, which benefit the American economy in numerous ways. International companies in the United States build new factories, fund U.S.-based research and development (R&D), and grow their well-established U.S. operations. They also employ millions of Americans in well-paying jobs.
Achieving all-time highs in the last two years, international firms invested $477 billion in 2015, followed by a drop of two percent to $468 billion in 2016. Total investment in 2015 and 2016 was more than twice that of 2014. Equity inflows of more than a quarter-trillion dollars in 2016 made up the majority of foreign direct investment in the United States, followed by reinvestment of earnings of nearly $100 billion.
Worldwide investment mirrored the U.S. trend, decreasing two percent between 2015 and 2016. Globally, foreign direct investment (FDI) inflows came to $1.75 trillion in 2016, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2017 (WIR17). UNCTAD predicts a mild recovery in worldwide FDI flows to $1.8 trillion in 2017, citing an improving economic outlook in most regions of the world, but especially in Asia. Growing geopolitical tensions and ongoing policy uncertainty related to the treatment of foreign investors are among the negative factors UNCTAD points to as possibly curbing worldwide investment flows this year.