The United States experienced a strong economic recovery following the COVID-19 pandemic, leading to increased dominance in global financial flows. The White House highlighted the country’s attractiveness for foreign investments, with initiatives in manufacturing and incentives driving significant foreign direct investment. President Joe Biden’s administration’s emphasis on infrastructure, clean energy, and semiconductor technology attracted global investments, notably from key allies like Canada, Japan, South Korea, and Britain.
As President Biden prepares to leave office, concerns arise over the impact of President-elect Donald Trump’s America First policies and tariff threats on global investments. Despite challenges, the U.S. remains a top destination for capital inflows, accounting for 41% of global gross inflows, a significant increase from pre-pandemic levels. While global capital flows decreased overall, the U.S. maintained its position as a leading player in international financial markets.
The U.S. dollar retains its status as the world’s primary reserve currency, underpinned by the depth and liquidity of the U.S. Treasury market. Business investments, particularly in manufacturing and infrastructure, have driven economic growth, with the U.S. attracting substantial foreign direct investments. Initiatives promoting renewable energy and semiconductor technology have bolstered foreign investment commitments, contributing to the growth of the U.S. economy and stock of foreign direct investment.
Billion, according to the CEA. Both outbound and inbound investments from China have decreased by 23% from 2017 to 2023, the CEA reported. This decline is attributed to heightened scrutiny of potential national security risks. (Reporting by Andrea Shalal in Washington; Editing by Dan Burns and Matthew Lewis)
