HOW EUROPE CONTRIBUTES TO THE US ECONOMY
Submitted by christian on Wed, 11/15/2017 - 17:18
- In 2015 Europe accounted for 80% of estimated global FDI inflows into the U.S. of $384 billion.
- Europe accounted for nearly 70% of the $2.9 trillion invested in the United States in 2014 on a historic cost basis. The bulk of the capital was sunk by British firms (with total UK stock amounting to $450 billion), the Netherlands ($305 billion), Luxembourg ($243 billion), and then Switzerland, Germany and France ($224 billion each).
- In 2014 total assets of European affiliates in the U.S. were an estimated $8.4 trillion. The UK ranked first, followed by Germany, Switzerland and France.
- The U.S. remains the most important market in the world in terms of earnings for many European multinationals. Yet European affiliate income earned in the United States dropped in 2015 by around 10% to $100 billion, following a 4.3% decline in 2014.
- The output of British firms in the U.S. in 2014 reached an estimated $143 billion — more than a quarter of the total output of European firms in the U.S. The output of German firms in the U.S. totaled $98 billion, or about 18% of the total.
- European companies operating in the U.S. accounted for nearly two-thirds of the $835 billion contributed by all foreign firms to U.S. aggregate production in 2014.
- Affiliate sales, not trade, are the primary means by which European firms deliver goods and services to U.S. consumers. In 2013 European affiliate sales in the U.S. ($2.4 trillion) were more than triple European exports to the U.S. Affiliate sales rose roughly 5.2% in 2013. Sales by British affiliates in the U.S. totaled $619 billion in 2013, followed by German affiliate sales ($457 billion) and those by Dutch affiliates ($290 billion).
- Foreign firms operating in the United States generated one-fifth of America’s goods exports in 2013; more than 57% of these U.S. exports were generated by European companies. The United Kingdom and Germany dominate European affiliate exports in the United States. UK affiliates in America exported $56 billion worth of goods from the U.S. and German affiliates exported nearly $45 billion in goods from the U.S. German automaker BMW is America’s largest exporter of cars to the rest of the world in terms of value.
- European companies are the key provider of affiliate services in the U.S. Foreign affiliate sales of services in the United States totaled $878 billion in 2013; European firms accounted for 58% of the total. British affiliates led in terms of affiliates sales of services ($126 billion), followed closely by those from Germany $120 billion). European companies operating in the United States generated an estimated $526 billion in sales in 2014, 2.7 times more than European services exports to the U.S. of $192 billion.
- European companies in the U.S. employ millions of American workers and are the largest source of onshored jobs in America
- European majority-owned foreign affiliates directly employed roughly 4 million U.S. workers in 2013 — some 200,000 less workers than U.S. affiliates employed in Europe. The top five European employers in the U.S. in 2013 were firms from the UK (1 million), Germany (641,000), France (557,000,, Switzerland (462,000 and the Netherlands (410,000).
- European firms employed two-thirds of all U.S. workers on the payrolls of majority-owned foreign affiliates in 2013. German affiliates created an estimated 25,000 new jobs in the U.S. in 2013, followed by UK firms (24,000) Dutch (15,000) and French (10,000). The top five U.S. states in terms of jobs provided directly by European affiliates in 2013 were California (378,000), Texas (317,600), New York (299,500), Pennsylvania (216,300) and Illinois (192,500).
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