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EU27 Investment in the Rest of the World Down by a Quarter in 2009
added: 2010-06-25

In 2009, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) fell by 24%, from 348 billion euro in 2008 to 263 bn in 2009, while FDI into the EU27 from the rest of the world (inflows) increased by 12%, from 199 bn to 222 bn.

These figures, published by Eurostat, the statistical office of the European Union, come from the first FDI results for 2009.

USA accounted for more than 40% of investment in the EU27

The main destination for EU27 investments in the rest of the world remained the USA, although EU27 investments fell from 121 bn euro in 2008 to 69 bn in 2009. EU27 investments also fell in Russia (from 26 bn to disinvestment of 1 bn), Canada (from 8 bn to 3 bn), Hong Kong (from 6 bn to 3 bn) and Japan (6 bn to 0.1 bn). Investments grew with Offshore financial centres (from 39 bn to 60 bn), Switzerland (from 34 bn to 45 bn) and Brazil (from disinvestment of 1 bn to investment of 7 bn).

The USA was also the main source of investment in the EU27, up from 50 bn euro in 2008 to 97 bn in 2009. Investments in the EU27 also increased from Offshore financial centres (from 20 bn to 40 bn) and Switzerland (from 11 bn to 32 bn).

Investments from Canada (from 15 bn to 11 bn), Brazil (from 11 bn to 3 bn) and Japan (from 7 bn to disinvestment of 2 bn) fell.

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

Luxembourg, with outflows of 112 bn euro, a 42% share of the EU27 total, was the largest investor outside the EU27 in 2009, followed by the United Kingdom (31 bn or 12%) and France (26 bn or 10%). Luxembourg (88 bn or 40% of the EU27 total), was also the main recipient of FDI inflows from the rest of the world, ahead of the United Kingdom (34 bn or 15%) and France (10 bn or 5%). The role of Luxembourg in EU FDI is mainly explained by the importance of its financial intermediation activity.

In 2009, the EU27 was a net investor in the rest of the world, with outflows higher than inflows by 42 bn euro. In 2008 outflows were also higher than inflows, by 149 bn. Among the EU Member States, Luxembourg was the largest net investor outside the EU27 in 2009, with net investment of 24 bn, followed by the Netherlands (18 bn) and France (16 bn). With inflows higher than outflows by 4 bn, Hungary was the largest net recipient of FDI from the rest of the world.


Source: ECB

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