Brussels, 27/06/2011 (Agence Europe) - Following the economic crisis, EU27 FDI (foreign direct investment) in the rest of the world (outflows) declined significantly in 2010, falling by 62%, from €281 billion in 2009 to €107 billion in 2010, while FDI into the EU27 from the rest of the world (inflows) dropped by 75%, from €216 billion to €54 billion. This continues the trend of recent years, with EU27 outflows in 2010 standing at more than five times lower than in 2007, and inflows around eight times lower.
The sharp fall in EU27 investment in the rest of the world in 2010 is explained by the significant declines recorded with the offshore financial centres (from €89 billion in 2009 to €21 billion in 2010), the USA (from €79 billion to €12 billion) and Switzerland (from €44 billion to disinvestment of €7 billion). The USA was the main source of investment in the EU27, although down considerably from €97 billion in 2009 to €28 billion in 2010. Investment in the EU27 also decreased significantly from Switzerland (from €25 billion to €6 billion) and offshore financial centres (from €46 billion to a disinvestment of €4 billion). However, investments increased strongly from Canada (from €12 billion to €28 billion), Hong Kong (from €1 billion to €11 billion) and Brazil (from €0.4 billion to €4 billion), and to a lesser extent from Japan and China.
Luxembourg, with outflows of €38 billion, was the largest investor outside the EU27 in 2010, followed by Belgium (€36 billion), Germany (€29 billion) and France (€23 billion). Luxembourg (€48 billion) was also the main recipient of FDI inflows from outside the EU27, ahead of the United Kingdom (€28 billion), Ireland (€21 billion) and Germany (€14 billion).
The EU27 was a net investor in the rest of the world in 2010, with outflows exceeding inflows by €53 billion. (E.H./transl.rt)