Foreign Investment — Keeping the Economy Going

By Scott B. MacDonald, Ph.D. , Chief Economist The Federal Reserve Bank of Atlanta (as of October 6th) puts 3rd quarter real GDP at a robust 3.7%. The US labor market remains resilient with unemployment at 4.2%. But there are plenty of red flags. One of the key reasons that the US economy continues to expand is the strength of investment, from both domestic and foreign sources. Indeed, foreign direct investment (FDI) was up for the first time in three years in 2025. FDI in Q1 2026 is estimated at $92 billion, a 50% increase over Q4 2025. For 2025, according to the US Bureau of Economic Analysis, FDI in the US economy stood at an impressive $232.2 billion, lead by Japan ($50.7 billion), Germany ($26.7 billion) and Canada ($23.5 billion). Where is the foreign investment going?... Read More Inside This Edition