In 2008, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) fell by 28%, from 496 billion euro in 2007 to 354 bn in 2008, while FDI into the EU27 from the rest of the world (inflows) decreased by 57%, from 400 bn to 173 bn. In 2008, intra-EU27 FDI flows dropped by 42% compared with 2007.

In 2008 the EU27 invested 149 bn euro in the USA, compared with 171 bn in 2007. EU27 investments also fell in Offshore financial centres (from 130 bn to 43 bn) and Canada (from 42 bn to 9 bn). Investments grew with Switzerland (from 24 bn to 33 bn) and Russia (from 16 bn to 22 bn), and remained nearly stable with Hong Kong (from 8 bn to 7 bn).

The USA invested 45 bn euro in the EU27 in 2008, compared with 194 bn in 2007. Investments in the EU27 also fell from Offshore financial centres (from 124 bn to 45 bn), Switzerland (from 20 bn to 5 bn), Japan (from 19 bn to 4 bn) and India (from 10 bn to 2 bn), while investments from Canada (from 14 bn to 18 bn) and Brazil (from 2 bn to 7 bn) rose.

Despite its growing importance in trade in goods, EU27 FDI flows with China (excluding Hong Kong) remained modest in 2008, with EU27 investment of 5 bn euro in China and Chinese investment of 0.1 bn in the EU27.

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

Luxembourg, with outflows of 83 bn euro, a 23% share of the EU27 total, was the largest investor in extra-EU27 in 2008, followed by France (58 bn or 16%) and the United Kingdom (52 bn or 15%). Luxembourg (76 bn or 44% of the EU27 total), was also the main recipient of FDI inflows from extra-EU27, ahead of the United Kingdom (45 bn or 26%) and France (25 bn or 15%). The role of Luxembourg in EU FDI is mainly explained by the importance of its financial intermediation activity.

In 2008, the EU27 was a net investor in the rest of the world, with outflows higher than inflows by 182 bn euro (1.5% of GDP). In 2007 outflows were also higher than inflows, by 96 bn (0.8% of GDP). Among the EU Member States, France was the largest net investor outside the EU27 in 2008, with net investment of 33 bn, followed by Germany (27 bn) and Spain (25 bn). With inflows higher than outflows by 9 bn, the Netherlands was the largest net recipient of FDI from extra-EU27.

France main actor in intra-EU27 FDI

France (92 bn euro), Germany (71 bn) and the Netherlands (37 bn) were the main investors inside the EU27 in 2008. France (55 bn) was also the main recipient of investments from intra-EU27, followed by Spain (40 bn) and Belgium (34 bn).