The Transatlantic Business & Investment Council (TBIC) is the official European representative for selected counties, cities, and corporations from over 30 U.S. States. It is our mission to promote transatlantic trade and investment. To that end, TBIC bridges the gap between U.S. Economic Development Organizations (EDOs) and European investors looking to enter or expand in the U.S. market.
This latest issue of our quarterly features an analysis of the newly published data for Q4 2023 and revised data for the previous quarters, as recently released by the U.S. Bureau of Economic Analysis (BEA). With $66.2 billion worth of investment, fourth quarter FDI inflows decreased from inflows in Q3 2023, which were revised to the slightly higher amount of $73.1 billion (up from $67.8 billion). Of this $66.2 billion in Q4 2023 FDI inflows, approximately $21.1 billion were in the manufacturing sector, or roughly, 31.9% – very consistent with the proportion from previous quarters.
Within manufacturing, noticeable increases in FDI inflows were observed from Q3 2023 to Q4 2023 in the food, machinery, and electronics sectors. The machinery sector experienced an increase in investment from $1.6 billion in Q3 2023 to $3.8 billion in Q4 2023 (or a 137.5% increase). Meanwhile, investments in the food and electronics sectors increased by approximately $1.3 billion and $500 million, respectively.
This issue includes a time series focusing on Spanish foreign direct investment into the United States. Spain’s FDI stock in the United States amounted to a total of $75.71 billion at the end of 2022, with the inflow being $3.96 billion, $571 million, $2.86 billion, and -$481 million in Q1, Q2, Q3, and Q4 of 2023 respectively (the numbers for Q3 and Q4 may however still be subject to revision). The Spanish economy is particularly reliant on international conditions – both export and tourism are hugely important for the health of the economy. Recovering from a slump of GDP growth induced by the COVID-19 pandemic in 2020 at -11.2%, the economy grew by 6.4% in 2020 and 5.8% in 2021. Household consumption, stronger-than-expected manufacturing, and the upswing of tourism and exports (especially the latter two) were attributed as the chief causes of this recovery. The most important sectors for the Spanish economy are automotive, chemicals, and construction. Agriculture and food sectors also figure highly in the list, along with tourism. Exports comprise over 40% of the GDP. Spain ranks as the fourth largest economy in the EU. The GDP per capita is at 89% of the EU average, placing it at the 20th place within the EU. A range of brand leaders come from Spain – for example Zara, whose revenue exceeds that of H&M, the Gap, and Uniqlo. Spain is a dynamic country, shares a long history of diplomatic and economic relations with the U.S., and is also a destination for future FDI and trade show trips for TBIC, such as the Advanced Manufacturing Show in Madrid this November
In addition to the focus on the Spanish economy, this issue also highlights how global geopolitical trends have impacted FDI trends, and how transatlantic ties have become increasingly important with time. Foreign threats and looming supply chain issues bring closer the transatlantic ties, and understanding this can benefit EDOs in attracting European investments. There continue to be many reasons to maintain confidence about U.S.-European economic conditions.
Find a PDF version of this document here.
Courtesy of the Transatlantic Business & Investment CouncilThe post TBIC | Transatlantic Business & Investment Council Quarterly: Transatlantic Foreign Direct Investment Analysis & Trends first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.
10
Jul