White House: Foreign Investment in U.S. Up 49% in 2010

Foreign funds employed 5.7 million U.S. workers.

The White House on June 20 touted a 49% rise in foreign investment in the economy in 2010, promoting foreign cash flows as a key driver of the recovery and jobs growth.

A report by President Barack Obama's Council of Economic Advisors found that firms supported by foreign funds employed 5.7 million U,S, workers, often on favorable terms and produced $670 billion in goods and services.

"Investments by foreign-domiciled companies and investors create well-paid jobs, contribute to economic growth, boost productivity, and support American communities," Obama said. "The United States consistently receives more foreign direct investment than any other country in the world.

"By voting with their balance sheets, businesses from abroad have clearly stated that the United States is one of the best places in the world to invest," he said, touting a productive workforce and culture of innovation.

The CEA report said that in 2010, foreign direct investment rebounded sharply and rose by 49% from the levels plumbed during the economic crisis in 2009. It said that that the United States also continued to receive the most foreign direct investment of any nation in the world, though did not give specific figures to back up the analysis.

The report did, however, cite figures from the United Nations Conference on Trade and Development (UNCTAD), saying that the U.S. stock of inbound investment in 2009 reached $3.1 trillion.

The CEA study also revealed that most of the foreign investment in the United States originated from firms in other advanced nations, especially from those in Canada, Europe and Japan. Only two percent of the total came from companies in fast emerging economies Brazil, China and India.

Copyright Agence France-Presse, 2011

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