Will Foreign Capital Flows Change in 2026?

Expenses by foreign direct investors to obtain, develop, or expand U.S. companies amounted to $232.2 billion in 2025, according to preliminary stats launched today by the U.S. Bureau of Economic Analysis. Expenditures increased $76.8 billion, or 49.5 percent, from 2024 levels. As in previous years, acquisitions of existing U.S. businesses represented many of the expenditures.

services were $4.6 billion, and expenditures to broaden existing foreign-owned businesses were $9.2 billion. Planned overall expenditures, that include both first-year and scheduled future expenditures, were $284.5 billion. Work in 2025 at newly acquired, established, or broadened foreign-owned services in the United States was 213,100 employees. By industry, expenses for brand-new direct investment were biggest in publishing industries ($50.7 billion), followed by chemicals manufacturing ($45.4 billion) and plastics and rubber items making ($19.0 billion).

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The country with the largest financial investment was Japan ($50.5 billion), followed by Germany ($26.7 billion) and Canada ($23.5 billion).1 By region, Europe contributed the most new financial investment, $116.6 billion, or 50.2 percent of all new financial investment in 2025. Asia and Pacific was the second-largest investing region, with $71.9 billion in expenditures.

service or to expand an existing foreign-owned U.S. businesswere $13.8 billion in 2025. By market, greenfield expenses were largest in transport and warehousing ($3.6 billion), computers and electronic devices items manufacturing ($2.0 billion), and chemicals production ($1.8 billion). By region, investors from Asia and Pacific contributed the highest dollar worth of greenfield expenses ($8.3 billion), led by Australia ($3.0 billion), South Korea ($2.2 billion), and Japan ($1.7 billion).

Planned total expenses for greenfield financial investment started in 2025, which include both first-year and scheduled future expenditures, were $66.1 billion. Total prepared work, which includes the present employment of acquired enterprises, the planned work of recently established organization enterprises when fully operational, and the prepared work associated with expansions, was 232,400.

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California (37,200) was the state with the biggest current work resulting from new financial investment, followed by Illinois (17,600) and Texas (16,500). Billions of dollars First-year expenditures151.0155.3 U.S. businesses acquired143.0146.4 U.S. companies established6.36.4 U.S. services expanded1.82.5 Planned total expenditures157.0164.0 U.S. organizations acquired143.0146.4 U.S. organizations established7.88.2 U.S. businesses expanded6.29.4 U.S. Bureau of Economic AnalysisFor the 2025 brand-new foreign direct financial investment stats highlighted in this release, in addition to quotes for earlier years, see the listed below information tables in "Supplemental Data."First-Year and Planned Overall Expenses, Market of Affiliate by Type of Financial Investment First-Year and Planned Total Expenditures, Nation of UBO by Kind Of InvestmentFirst-Year and Planned Overall Expenditures, State by Type of InvestmentFirst-Year and Planned Overall Expenses, Industry of UBO by Type of InvestmentFirst-Year and Planned Overall Expenses, by Industry of Affiliate (All Industries)First-Year and Planned Total Expenditures, by Country of UBO (All Countries)First-Year Expenditures, Nation of UBO by Industry of AffiliateFirst-Year Expenditures, Country of Foreign Parent and UBOPlanned Total Expenses for Establishments and Growths, by Kind Of ExpenditurePlanned Expenditures for Greenfield Investments, Kind Of Investment by YearPlanned Expenses for Greenfield Investments, Industry of Affiliate by YearPlanned Expenses for Greenfield Investments, Nation of UBO by YearPlanned Expenses for Greenfield Investments, State by YearExpenditures for Greenfield Investments, Year of Financial Investment Expenditure by Year Financial Investment Was InitiatedCurrent and Planned Employment, Market of Affiliate by Type of InvestmentCurrent and Planned Employment, Nation of UBO by Kind Of InvestmentCurrent and Planned Employment, State by Kind Of InvestmentNumber of financial investments initiated, Circulation of Planned Total Expenditures, Size by Kind Of Investment BEA has upgraded its disclosure avoidance technique to coarsening, that includes rounding, aggregation, and using varieties.

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1. Based on a comparison of the S&P 500 Index to the Bloomberg US Convertible Money Pay Bond > $250mn Index. The S&P 500 is a stock market index weighted by market capitalization that is made up of 500 of the biggest public business in the United States. The Bloomberg United States Convertible Cash Pay Bond > $250mn Index tracks the efficiency of United States dollar-denominated cash-pay convertible securities with minimum quantities outstanding of at least $250 million.

The information herein is basic in nature and must not be thought about legal or tax recommendations. As with all your financial investments through Fidelity, and in connection with your assessment of the security, you must make your own decision whether an investment in any specific security or securities is consistent with your financial investment objectives, threat tolerance, and monetary scenario.