Foreign Investment in U.S. Down 12% at Start of 2011, Group Says
The U.S. must come up with policies to reverse a decline in investment in the country by overseas companies, according to the Organization for International Investment.
Foreign direct investment fell 12 percent in the first six months of 2011 compared with the same period last year, the Washington-based group said in a report released today. The U.S. received 18 percent of the world’s foreign direct investment in 2009, down from 41 percent in 1999, according to the report.
The declines indicate the U.S. economy has become less attractive to global companies, the report said. A lack of new policies to boost inflows into the U.S. will lead to fewer jobs and a “continued erosion of America’s competitiveness,” it said.
“This is a non-partisan issue both sides of the aisle can work on together,” James Guyette, president and chief executive officer of Rolls-Royce North America Inc., said in a statement. “A national effort to attract foreign investment will help us compete with the rest of the world to grow jobs right here.”
Rolls-Royce is among the companies represented by the organization, which also include BNP Paribas SA, Research in Motion Ltd. and the Tata Group. The report doesn’t suggest specific policies for improving foreign direct investment.
To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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