Boost for the US Economy as Inflows of Foreign Direct Investment over Thirteen Times More Than Global Average
Chicago, Illinois (PRWEB) February 13, 2017 -- The amount of foreign direct investment (FDI) attracted by the US is outperforming the global average by over thirteen times, according to a new study by UHY, the international accounting and consultancy network.
According to UHY, inflows of FDI into the US were $379.4 billion last year, accounting for 2.1% of total GDP. This compares to the average world figure of $29.3 billion, or 2.2% of total GDP.
Countries are keen to win FDI because it helps power economic growth. As well as boosting job creation and tax revenues, it can act as a spur to competitiveness and productivity through knowledge transfer or investment in improved processes, technologies or infrastructure.
The USA, China and Brazil attracted the most FDI in absolute terms – at $379 billion, $250 billion and $75 billion respectively in 2015.
The UHY study looked at FDI inflows last year in 45 major economies around the world, measuring how successful they have been in attracting FDI as a percentage of their GDP.
UHY says that the US has several advantages which make it attractive to foreign investors, including:
• World’s largest economy
• Workforce with a comparatively high level of qualification
• Predictable and transparent judicial system
• Highly developed infrastructure network
Comments Dennis Petri, Managing Director at UHY Advisors, a member firm of the UHY network: “The US is attracting significant amounts of FDI – leaving much of the rest of the world behind.”
“Inbound investment by foreign businesses is a sign of confidence in an economy, providing a boost to business growth, job creation and developments in areas such as innovation and infrastructure.” “Continuing to focus on fostering an environment that encourages foreign investment is key if the US is to maintain its position on the global stage.”
However, the research shows that the BRIC economies in total are easily outperforming the G7 in attracting FDI, with total inflows of FDI accounting for 2.3% of the total BRIC nations’ GDP last year. This figure compares to 1.7% of GDP for the G7. BRICs economies received total FDI in 2015 of $375 billion – a 59% increase on five years ago in 2010 when the figure was $236 billion.
Of the G7, Japan and Italy saw the lowest performance with 0% and 0.7% respectively. Germany was also well below the average with just 1.4% ($46 billion in total). Overall, Europe saw FDI worth 2% of total GDP, slightly below the global average of 2.2% of total GDP.
UHY says that emerging economies are seen as providing better growth opportunities for multinational businesses than the more mature economies of the G7.
In addition, the shift towards locating manufacturing facilities in emerging economies rather than in western countries continues as multinational companies seek locations with low labor costs, availability of resources and favorable business climates.
ASEAN economies (Association of South East Asian Nations) outperformed even the BRIC nations in terms of FDI as a share of their economies, attracting FDI worth 5.3% of GDP.
Malta saw the highest FDI as a share of GDP in the study at 25.8% ($2.5 billion in total), as the island continues to take advantage of its location at the crossroads of Europe, Africa and the Middle East to become an international center for banking and attract substantial inflows of capital.
Click here to see the full results: http://www.uhy-us.com/News-Events/Article/775/Boost-For-the-US-Economy-as-Inflows-of-Foreign-Direct-Investment-Over-Thirteen
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About UHY LLP
UHY LLP, a licensed CPA firm, provides audit and other attest services to publicly traded, privately owned and nonprofit organizations in a number of industry sectors. UHY Advisors provides tax and advisory services to entrepreneurial and other organizations, principally those enterprises in the dynamic middle market.
UHY LLP, operating in an alternative practice structure with UHY Advisors, forms one of the largest professional services firms in the US. While that scale might provide confidence for some clients, others tell us our greatest value is the way we bring these resources to bear to help address today’s evolving business challenges. It’s a philosophy we call “The Next Level of Service”. To learn more visit http://www.uhy-us.com.
All of the above entities are members of UHY International (“UHYI”), a worldwide network of independent professional services firms that provide audit, tax and advisory services around the globe. UHYI is ranked among the top international accountancy networks and a proud member in good standing of the Forum of Firms. Collectively, our US operating entities (UHY LLP and UHY Advisors) are the largest independent members of UHYI with significant participation, bringing the power of our international network to serve the individualized needs of our clients.
UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors.” UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP and UHY Advisors, Inc. are US members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP and/or UHY Advisors (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
About UHY, the network
Established in 1986 and based in London, UK, UHY is a network of independent audit, accounting, tax and consulting firms with offices in over 296 major business centers across more than 90 countries. Our staff members, over 7,660 strong, are proud to be part of the 16th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to http://www.uhy.com.
UHY press contact: Dominique Maeremans on +44 20 7767 2621 Email: d.maeremans(at)uhy(dot)com.
UHY is a full member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit http://www.forumoffirms.org.
UHY is an international association of independent accounting and consultancy firms, whose organizing body is Urbach Hacker Young International Limited, a UK company. Each member of UHY is a separate and independent firm. Services to clients are provided by the UHY member firms and not by Urbach Hacker Young International Limited. Neither Urbach Hacker Young International Limited nor any member of UHY has any liability for services provided by other members.
Chris Clark, UHY LLP, +1 (586) 843-2637, [email protected]
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