According to IMF data reported by Bloomberg News, despite global calls to diversify away from the dollar, the U.S. has attracted a significant share of international investment post-Covid. The U.S. share of global investment flows rose from 18% pre-pandemic to one-third recently, driven by high U.S. interest rates and incentives for renewable energy and semiconductor production under President Biden. In contrast, China’s share has significantly declined. However, potential changes in U.S. policy and interest rates could impact these trends.

Key Points:

• U.S. investment share increased from 18% pre-Covid to about 33% recently.
• High U.S. interest rates and Biden’s economic initiatives have attracted significant foreign direct investment.
• China’s global investment share has halved since the pandemic.
• Potential policy reversals in the U.S. and lower interest rates could change investment dynamics.
• Emerging markets are struggling, receiving minimal capital inflows.
• Significant investments in the U.S. include Samsung’s $6.4 billion grant for chip production in Texas.
• Concerns about U.S. political stability and fiscal health could affect future investment attractiveness.

Source:  Bloomberg.