Rebounding U.S. Economy Likely to Attract Flood of Foreign Investors

June 24, 2021

The U.S. economy’s robust rebound is likely to make the country the world’s top destination for foreign investors this year and next, according to the United Nations, as overseas companies drawn by strong consumer demand and the potential for trillions of dollars in infrastructure spending.

According to U.N. projections, foreign investments around the world fell by roughly one-third in 2020. The U.S. saw a drop of 40% last year, but managed to hold on to its long-held position as the top destination for investors, narrowly beating out China. Previous estimates made by the U.N. in January estimated that the U.S. had lost its top spot.

The U.N. expects the U.S. to easily hold its leading position in 2021 and 2022, given estimates of GDP growth of 7% this year, driven by multi-trillion dollar stimulus spending and pent-up demand from consumers sitting on $2.6 trillion in excess savings.

With not only the U.S. but much of the global economy recovering faster than anticipated, the U.N. expects businesses around the world to increase foreign investments by 10-15% this year followed by a further 20-30% increase in 2022.

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