Direct Investment Positions for 2005

In 2005, the historical-cost position of US direct investment abroad (USDIA) grew 1% after growing 16% in 2004. The historical-cost position of foreign direct investment in the US grew 8%, down slightly from 9% growth in 2004. The USDIA position valued at historical cost -- the book value of US direct investors' equity in, and net outstanding loans to, their foreign affiliates -- was $2,070.0 billion at the end of 2005. Three host countries -- the UK, Canada, and the Netherlands -- accounted for over a third of the total position. Positions in the UK and Canada were more than twice as large as those in any other country except the Netherlands. The position in the UK was $323.8 billion, or 16% of the total. Equity capital outflows fell to $39.7 billion in 2005, down sharply from $81.4 billion in 2004, but were nonetheless the largest contributor to the net change in the USDIA position.