Investments Statistics US in NL

US Direct Investment Abroad

In July 2011 the US Bureau of Economic Analysis published the revised direct investment positions for 2009 and the preliminary figures for 2010. In 2010 US investment abroad, valued at historical-cost (the book value of US direct investors' equity in, and net outstanding loans to, their foreign affiliates), grew $361.2 billion to $3,908.2 billion. The 10 percent growth rate was roughly the same as in 2009 and up from 8 percent growth in 2008, and in line with the average annual growth rate of 11 percent in 1999-2009.

Positions in the Netherlands and the UK were the largest – each accounting for about 13 percent of the total. The position in the Netherlands was $521.4 billion, and the position in the UK was $508.4 billion. For the Netherlands, most of the position increase was accounted for by holding companies, which likely invested the funds in other countries or industries. The positions in Canada and Bermuda were the next largest – each accounting for 7 percent of the world total.

The Netherlands has become a clear leader within Europe of holding activities, with almost 38% of holding activities of US companies in Europe - almost three times that of the UK, almost twice that of Luxembourg and over five times more than Switzerland.

The US direct investment position in Europe rose $180 billion in 2010.  The largest component of the increase was reinvested earnings, which accounted for 86 percent of the increase. The largest increase was in the Netherlands - $44.8 billion (just over 30 percent of the position increase in Europe).

U.S. Direct Investment in the Netherlands 
(2009 figures revised; 2010 figures are preliminary)
(billions of dollars, historical-cost basis)

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Holding Companies in the Data on US Direct Investment Abroad:

For the past 25-30 years, US parent companies have funneled an increasing share of their direct investments abroad through holding company affiliates. Foreign affiliates classified as holding companies accounted for 39% of the US direct investment position abroad in 2010. In 1982, this figure was 9% and by 2000 the figure grew to well over 25%. In Europe this figure is 46% in 2010. The upward trend of the holding company share is part of a broader trend of indirect ownership in which US parents own foreign affiliates that, in turn, own other foreign affiliates. One consequence of the rising use of indirect ownership arrangements is that US direct investment abroad estimates of the position and related flows show industry and country patterns that are increasingly different from the industries and countries in which the production and sales of goods and services by foreign affiliates occurs.