Global Connections in Pharma Strengthen America's Economy
International companies operating in the United States play an important role in supporting the U.S. pharmaceutical industry through foreign direct investment (FDI).
Foreign direct investment in the United States (FDIUS) totaled nearly $67 billion in the first-quarter 2021. This is down 15 percent from the previous quarter. Net equity flows decreased from $51 billion in fourth-quarter 2020 to $29 billion in the last quarter. Reinvestment of earnings were up 23 percent to $39 billion from the previous quarter.
Foreign direct investment in the United States in 2020 was $164 billion, making it the weakest year for FDIUS over the past decade. Two record-breaking years of FDIUS were recorded in 2015 and 2016, at $484 billion and $480 billion, respectively. While the United States remains an attractive investment location, global competition for foreign investment dollars is increasing as more developing countries position themselves as investment destinations.