U.S. Moves to Top of 2013 A.T. Kearney Foreign Direct Investment Confidence Index

The results of the 2013 A.T. Kearney Foreign Direct Investment Confidence Index:

At last, investors appear ready to get back to business. Despite fiscal policy gridlock and unresolved debt issues plaguing many developed countries around the world, the executives we surveyed for the 2013 A.T. Kearney Foreign Direct Investment Confidence Index are surprisingly optimistic about the global economic outlook.

The FDI Confidence Index, in its 13th edition since 1998, ranks countries on how political, economic, and regulatory changes will affect FDI. Based on a survey of more than 300 executives from 28 countries, we examine where global investment dollars are likely to be headed.

Some of the highlights in this year’s Index include:

• The United States returns to the top spot for the first time since 2001 as it makes progress toward sustainable, steady growth –even, in the context of serious policy uncertainty, as it works to resolve its debt issues and broader fiscal challenges.
• Other developed nations in the top 10 this year include Canada (4th) and Australia (6th), popular for their unconventional fossil fuels and minerals, and Germany (7th) and the United Kingdom (8th), which offer investment opportunities that are perceived as safe and reliable despite Europe’s ongoing debt and political issues.
• Emerging markets continue to charge ahead. They account for 16 of the top 25 countries in the Index, with China (2nd), Brazil (3rd), and India (5th) all in the top five once again.
• Mexico, with strong manufacturing and exports and close links to the United States and Canada, is in the top 10. Chile and Argentina reenter the rankings after a more than decade-long absence, highlighting South America’s increased consumer spending and rich endowment of natural resources.