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Foreign Investment in US Trumps US Investment Overseas by Record Amount

By    |   Thursday, 28 March 2013 08:08 AM

Foreign investment in the United States exceeded U.S. investment overseas by the highest total on record in the second and third quarters last year, according to the Commerce Department.

Its figures show that foreign investment in the United States topped U.S. investment abroad by $4.7 trillion in the middle two quarters of 2012, the largest gap since the government began accumulating the data in 1976.

The gap slipped a bit to $4.42 trillion in the fourth quarter, compared to $4.03 trillion in the fourth quarter of 2011.

Editor's Note:
Tiny Loophole Found in 70,320 Page IRS Tax Code Could Pay $87,500

Specifically, U.S.-owned assets abroad were $20.76 trillion at the end of 2012, compared with $21.13 trillion at the end of 2011, while foreign-owned assets in the United States were $25.18 trillion at the end of 2012, compared with $25.16 trillion at the end of 2011.

Obviously, whatever our economic and financial problems, the United States and its companies are attractive to foreign investors.

"The U.S. is still the largest market in the world, and despite some of our dysfunction, by comparison, we look like a pretty good investment," Nancy McLernon, CEO of the Organization for International Investment, which represents foreign investors in the United States, tells The Wall Street Journal.

Foreign investment in the United States has bested U.S. investment overseas since the late 1990s, and the imbalance widened after the 2008 financial crisis.

On the individual side, many foreigners are participating in the EB-5 U.S. visa program that allows foreigners permanent residence if they invest at least $500,000 in a U.S. project that creates at least 10 jobs.

Since the program started in 1992, more than 29,000 people have been granted visas for investing more than $6.8 billion and producing 50,000 jobs, according to U.S. officials, The Washington Post reports. About 75 percent of the visas have been issued since 2008.

Editor's Note: Tiny Loophole Found in 70,320 Page IRS Tax Code Could Pay $87,500

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Foreign investment in the United States exceeded U.S. investment overseas by the highest total on record in the second and third quarters last year, according to the Commerce Department.
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2013-08-28
Thursday, 28 March 2013 08:08 AM
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