PRESS RELEASE

PARTNERSHIP FOR NEW YORK CITY

New York, New York
June 27, 2008

PDF 106K
report (PDF 578K)

REPORT: Foreign Investment Generates $58 Billion in Economic Activity and 193,000 Jobs in New York City

Accounts for 10% of City's Economic Output

A new report by the Partnership for New York City found that jobs and business operations of foreign companies account for more than 10% of the city’s economic output, or approximately $58 billion annually as of 2006. The report, Foreign Direct Investment: Bringing the Benefits of Globalization Back Home, also found that foreign employers account for nearly half a million jobs in the State, and 193,000 jobs, or more than one in every 20 workers, in New York City.

This is the first attempt to measure the economic impact of foreign-controlled business operations, known as Foreign Direct Investment or “FDI,” in New York City. The report defines Foreign Direct Investment as investment where a foreign owner has majority control. From 2002 to 2004, FDI created nearly one in every 10 dollars of new economic activity in the State and one in every 7 dollars of new activity in the City. In addition, foreign-owned companies in New York are more productive. In 2002 the value added overall per FDI worker was around 60% higher than the average worker in New York State, and by 2004 this premium had risen to 71%.

“Nowhere in America are the benefits of globalization more clearly manifest than in New York City,” said Kathryn Wylde, President & CEO of the Partnership for New York City. “And nowhere in America is there a better microcosm of the opportunities that are still to be realized from foreign investment than in the prospects for revitalization of the Upstate New York economy and the city’s continued growth.”

The report argues that, as the U.S. position as the world’s largest economy is challenged, foreign investment will be more important than ever to New York and the rest of the country. It also points out that New York is competing with other world cities for foreign business investment.

More than a quarter of the London economy, or $104 billion, is attributable to FDI. As a result of U.S. policies and politics, many foreign business investors are looking elsewhere for investment opportunities, and jobs are following currency overseas.

The report sounds the alarm that anti-globalization sentiment in the U.S. will work against this country’s economic interests. It suggests that New York City and State provide leadership at the local and national level in support of foreign investment activity and in building partnerships with foreign-controlled businesses and sovereign wealth funds.
 
“New York’s business and political community clearly understand that foreign direct investments are important to the future growth of our economy. This message needs to be communicated effectively on the national stage, where policies that restrict foreign ownership are increasingly — and dangerously — in vogue. As a result, nearly half the foreign investors now operating in the U.S. believe they will get better value by directing their resources into other countries. Our report proves that foreign direct investment is a powerful antidote to the loss of jobs from globalization, bringing the benefits of a global economy back home,” said Kathryn Wylde.

The full report is available on the Partnership’s web site — www.pfnyc.org.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the center of world commerce, finance and innovation.