US tops global investment share as Trump starts second term
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The US has seen a record surge in cross-border investment projects. In the 12 months leading to November 2024, the state secured 14.3% of global greenfield investments. These investments rose from 11.6% in 2023. As Donald Trump begins his second term, it will be critical to see his impact on the investments. The data has emerged as business and political leaders gather in Davos to discuss how the Trump administration may change the global economy through reshored production and steep tariffs. The US leads global FDI, surpassing China and Germany Trump is set to address the World Economic Forum in Davos on Thursday via video link, with delegates eager to hear his economic plans. He did not immediately introduce higher import tariffs in the executive orders issued on his inauguration day. America attracted over 2,100 new FDI greenfield projects in the 12 months leading up to November. By contrast, China secured just under 400 projects in the same period, nearing a historic low and a far cry from the 1,000+ investments received annually in the decade leading up to the mid-2010s. In the 12 months leading up to November 2024, the number of new projects in Germany fell to 470, the lowest number in 18 years in the largest European economy. This represents a major drop from 1,100 greenfield investments in the same period the previous year. Nathan Sheets, chief economist at US bank Citi, attributed the American surge to the country’s role as a hub for AI innovation, lower energy costs, and investment incentives under the Biden administration’s Inflation Reduction Act and the Chips Act. For the time being, Sheets noted that China’s share of inward FDI has decreased due to geopolitical factors. He referenced the United States’ efforts to “de-risk” from China. Sheets says Europe’s share has dropped…
Filed under: News - @ January 21, 2025 8:23 am