In 2007, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) rose by 53%, from 275 billion euro in 2006 to 420 bn in 2007, while FDI into the EU27 from the rest of the world (inflows) increased by 89%, from 169 bn to 319 bn. In 2007, intra-EU27 FDI flows rose by 13% compared with 2006.

In 2007, the EU27 invested 113 bn euro in the USA and 58 bn in Canada, compared with 79 bn and 30 bn respectively in 2006. EU27 investments in Offshore financial centres rose from 50 bn to 84 bn. Investments grew also in Switzerland (from 23 bn to 34 bn), Russia (from 11 bn to 17 bn) and India (from 3 bn to 11 bn).

The USA invested 145 bn euro in the EU27 in 2007, compared with 74 bn in 2006. Investments in the EU27 from Offshore financial centres (from 30 bn to 98 bn), Switzerland (from 18 bn to 29 bn), Japan (from 14 bn to 18 bn) and India (from 1 bn to 10 bn) also increased, while Canadian investment remained stable at 9 bn.

EU27 FDI flows with China (excluding Hong Kong) remained modest in 2007, with EU27 investment of 2 bn euro in China and Chinese investment of 1 bn in the EU27.

The United Kingdom, Germany, Luxembourg and France main actors in extra-EU27 FDI flows

The United Kingdom, with outflows of 121 bn euro, and a 29% share of the EU27 total, was the largest investor in extra-EU27 in 2007, followed by Luxembourg (78 bn or 19%) and Germany (52 bn or 12%). With regard to extra-EU27 inflows, the United Kingdom, with 87 bn, and a 27% share of the EU27 total, was the main recipient of FDI, ahead of Luxembourg (50 bn or 16%) and France (23 bn or 7%). The role of Luxembourg in EU FDI is mainly explained by the importance of its financial intermediation activity.

In 2007, the EU27 was a net investor in the rest of the world, with outflows higher than inflows by 101 bn euro (0.8% of GDP). In 2006 outflows were also higher than inflows, by 106 bn (0.9% of GDP). Among the Member States, Germany was the highest net investor outside the EU27 in 2007, with a difference of 50 bn. With inflows higher than outflows by 15 bn, Ireland was the largest net recipient of FDI from extra-EU27.

France main actor in intra-EU27 FDI

France (125 bn euro), Germany (71 bn) and Italy (64 bn) were the main investors inside the EU27 in 2007. The main recipients of investments from other Member States were France (86 bn), the Netherlands (67 bn) and the United Kingdom (49 bn).