For Immediate Release: March 14, 2007
Contact: Matt Englehart  (202) 482-3809

COMMERCE LAUDS JUMP IN FOREIGN DIRECT INVESTMENT
TO THE UNITED STATES

2006 Foreign Direct Investment Up 67 Percent Over 2005

The Bureau of Economic Analysis of the U.S. Department of Commerce today announced that the United States received $183.6 billion in foreign direct investment in 2006, following $109.8 billion in 2005. This represents an increase of 67 percent and the largest amount of foreign direct investment in any single year since 2000.

“The leap in foreign direct investment is a reaffirmation of what we already knew; the United States continues to be the premier place to work and conduct business,” said Under Secretary for International Trade Frank Lavin. “As long as we continue to pursue the president’s policies of keeping taxes low, following fiscal restraint and pursuing an aggressive trade agenda, America will continue to stimulate economic growth and attract investments that will create jobs for U.S. workers.”

Reinvested earnings composed the largest portion of foreign direct investment in 2006, increasing by 36 percent between 2005 and 2006 from $58.9 billion to $80.3 billion. Net equity capital inflows increased from $57.7 billion in 2005 to $78.5 billion in 2006.

Investment from foreign companies employs more than 5 million American workers. U.S. subsidiaries also spent $29.9 billion on research and development activities in the United States in 2004.

On March 7, 2007, Under Secretary Lavin announced the creation of a new U.S.-Government initiative to promote the United States as a destination for foreign investment. The Invest in America initiative, housed in the International Trade Administration, is the primary U.S.-Government mechanism to promote inward investment. For additional information regarding the Invest in America initiative, please visit www.investamerica.gov.

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