In November 2017, the Italian Trade Agency (ITA) made available a report containing useful information on bilateral investments between USA and Italy. Two important pieces of information: Italy holds its 16th place among the investing countries in US and ranked 26th in the list of countries attracting U.S. FDI stock.
Let’s see in some details.
According to the report, after the sharp increase in global inflows into foreign direct investment (FDI) recorded in 2015 (+ 38% compared to 2014), the growth of incoming global flows lost momentum in 2016, slowed by the weak growth of the global economy and significant political risks perceived from investors – particularly multinational corporations.
Italy held – like in the past – the 16th place among the investing countries in the United States.
At a global level, the United States remain the main foreign investor and foreign direct investment’s investor, both in terms of stocks and inbound and outbound flows.
The U.S. to Italy. i) Investment Stock. According to ICE New York based on data provided by the US Department of Commerce, Bureau of Economic Analysis (BEA), in 2016, Italy ranked 26th in the list of countries attracting U.S. FDI stock, with $24.7 billion which represented 0.5% of the total foreign U.S. investments. [1] ii) FDI Flow. The industry that absorbs the largest share of U.S. investment in Italy is the manufacturing industry (36.3% of the total) with US $ 9 billion. Wholesale trade follows with 15.2%; banking services with 11%; financial and insurance activities count for 9.2% of the total investments; computer and telecommunications services 9%, chemicals and derivatives 5.4% and electronics 4.7% of U.S. investments in Italy.ii) In 2016, the United States disinvested from Italy a value of US $ 950 million. Among the recipient countries of U.S. FDI flow, Italy dropped to the 162nd place ( Italy ranked 36th in 2015). Ireland, the United Kingdom and Holland were the first three recipients of US FDI flows in 2016.
Italy to the U.S. i) Investment Stock.In 2016, the Italian stock market in the United States reached $ 30 billion. Italy holds – like in the past – the 16th place among the investing countries in the United States. ii) FDI Flows. In 2016, Italian FDI flows to the US dropped to $700 million from $6.9 billion (one of the highest values recorded over the past 10 years due to IGT’s acquisition by Gtech in 2015). The data register a decrease of 89.3% in FDI flows.
More information is available (in Italian) on the report published by the Italian Trade Agency (ITA).
Our firm can assist Italian entrepreneurs with the legal aspects of investing in the US and — in cooperation with our local Italian correspondents — can also assist American entrepreneurs with the legal aspects of investing in Italy. Contact us: info@cgcfirm.com
Il nostro studio e’ in grado di assistere imprenditori italiani con gli aspetti legali degli investimenti negli Stati Uniti e — in cooperazione con i nostri corrispondenti locali in Italia – e’ in grado di assistere imprenditori americani con gli aspetti legali dell’investire in Italia. Leggi anche Qual’é la soluzione migliore per espandersi sul mercato americano? investimento diretto all’estero o soluzioni alternative? Alcune riflessioni. Parte Prima, Seconda e Terza
[1] Other European countries, such as the Netherlands, the United Kingdom, Luxembourg and Ireland, absorb a larger share of these investments. Compared to 2015 – when the United States invested in Italy $26.3 billion; see here – there was a decrease of 6.1% in FDI stock toward Italy, even though U.S. direct investments abroad increased in general by 5.6%.