US Firms Holding $2.5 Trillion Overseas

The amount of cash held overseas by U.S. firms has risen to $2.5 trillion, according to new research by independent advisory firm Capital Economics, which suggests it’s very unlikely to be ever repatriated.

“This vast pile of foreign cash could provide a substantial boost to GDP (gross domestic product) if it was ever brought home. But the chances of this happening under the current tax system are very low,” Andrew Hunter, a U.S. economist at the firm, said in a new note on Monday.

Two years ago, the company estimated that the stock of earnings held abroad by U.S. corporations had increased six-fold over the previous decade, to a total of $2.1 trillion. It now states that it had risen to $2.5 trillion by the end of last year.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.