The United States is the world's largest economy with a GDP of over $15 trillion and a population and consumer market of more than 310 million people. The U.S. is a thriving market with a stable economic, political, and legal structure that offers a wealth of opportunities for foreign companies and investors.
The U.S. has significant natural resources, a healthy labor market and solid industries that help support more than 310 million people with a median household income of $48,000, which is among the highest in the world's major developed countries. In short, the continued demand for products and services appears great.
In addition, the United States has entered into free trade agreements with 19 other countries, providing access to a further 415 million customers for U.S. goods and services.
Foreign direct investment in the United States known as FDIUS totaled nearly $2.8 trillion through 2013 on a historical-cost basis. FDIUS is equivalent to about 16.5% of U.S. gross domestic product. Each year foreign firms make new investments in the United States and others grow their well-established U.S. operations. Foreign firms build new factories, fund researchand development, and employ millions of Americans in well-paying jobs. In 2013 alone, international firms invested $236 billion in the U.S. economy, a 35% increase from 2012.
For the second year in a row, A.T. Kearney’s FDI Confidence Index ranked the United States as the world's top market in 2014. UNCTAD’s WIR predicts that global FDI could rise to $1.6 trillion in 2014 and possibly reach $1.8 trillion by 2016. Cash holdings estimated at $4.5 trillion also remain high among the world’s 5,000 largest multinational companies. More foreign direct investment dollars flowed to the United States last year than to any other single country in the world. International investment in the U.S. market topped other large markets, including China, Russia, Hong Kong, and Brazil.
With all the opportunities, however, there is also some risks and challenges to potential investors. Unlike many countries, the U.S. is a nation of 50 separate states that have their own state and local regulations that require a healthy knowledge of tax, commercial, and labor laws. This is why CGA Group is a valuable partner for any new investor, with its local knowledge and network of experienced professionals.
When making your investment decisions we advise you to approach the market carefully and take the given information as a general guide. We also strongly advise you to consult with your advisors to appreciate and understand the challenges that any major investment decision can bring. If necessary, CGA Group is here to help.