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There was another reply here earlier that was saying it isn't a trade deficit. I wanted to steelman the parent post: Foreign investment into USA companies redu
by brad0 1y ago
There was another reply here earlier that was saying it isn't a trade deficit. I wanted to steelman the parent post:
Foreign investment into USA companies reduces the USA trade deficit but it isn't tracked in traditional methods.
I've heard that foreign investment in real estate generally isn't counted as each country owns properties equally between the two, so it nets out. I wonder if investments into companies is the same?
- chessgecko 1y agoIt is tracked! there are a few different numbers. by the BEA: https://fred.stlouisfed.org/graph/?g=gX0f https://fred.stlouisfed.org/graph/?g=gX0f by the treasury: https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/shl2024r.pdf https://ticdata.treasury.gov/resource-center/data-chart-cent... It's a little hard to figure out how important it is, but there are "good" numbers.
- JumpCrisscross 1y ago> Foreign investment into USA companies reduces the USA trade deficit Other way. Foreign investment doesn’t touch the trade account but the capital account. When the company the foreign investor invested in buys stuff, that alters the trade balance depending on what they buy from whom.