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FDI Declining in America

FDI Declining in AmericaFDI Declining in America

While the US economy is strong, a creeping decline in foreign investment indicates that eurozone investors are growing weary of US debt. Foreign investors are buying less and less American debt, yet the US moves onward with a debt-heavy budget and globally unpopular diplomacy, DW reported. At a critical time for economic growth, the US has noted a decline in foreign investment. Seen mostly in long-term treasury bonds, purchases by indirect bidders continue to decrease signaling investors may be weary of American debt. The European Central Bank found that after 2015, over half of US debt securities had been purchased by eurozone investors. Germany in particular holds $90.1 billion of US debt. In 2017 that trend reversed and eurozone investors became net sellers. The debate continues on what effect the growing debt has on investor confidence and how the US got in this position to begin with.

 

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