Luxembourg, 09/07/2002 (Agence Europe) - According to provisional estimates published on 4 July by Eurostat, EU FDI flows (foreign direct investment) with extra-EU countries strongly decreased in 2001. At 202 billion euro in 2001, investment by the EU in the rest of the world (outflows) was 37% lower than in 2000, while investment by the rest of the world in the EU (inflows) stood at 97 bn, 39% down.
The EU continued to be a net investor in the rest of the world, although the difference between outflows and inflows of FDI fell to 105 bn euro (1.2% of GDP) in 2001. In 2001, the United States was still the EU's main partner, receiving close to a half of extra-EU investment from Member States, and supplying 55% of investment from non-member countries in the EU. Japan accounted for 8% of inflows to the EU and 4% of outflows, while the figures for Canada were 6% and 9% respectively.
The European community's Statistical Office indicated that in 2001, reduced FDI flows were recorded by the majority of Member States. The only countries having positive growth rates for both inflows and outflows were Germany and Greece. France, the Netherlands and Finland recorded higher inflows than in 2000, while outflows from Austria, Belgium/Luxembourg and Denmark also increased. Ireland recorded disinvestment in both directions. In particular, the withdrawal of capital from FDI stocks invested in Ireland was high (-12 bn euro).
With 60 bn euro and a 30% share of the EU total, Germany was the largest investor in the rest of the world in 2001, followed by Belgium/Luxembourg (40 bn) and the Netherlands (36 bn). The United Kingdom's contribution fell to 6 bn in 2001 (-85% on 2000). Outflows from France (-61%), Spain (-56%) and Italy (-20%) also fell significantly.
In 2001 Belgium/Luxembourg (30 bn euro) and the Netherlands (28 bn) each had a share of around 30% of total EU FDI inflows, followed by the United Kingdom (23 bn). Denmark, Spain and Sweden recorded the highest falls in FDI inflows.
Eurostat points out that considering net investment, Germany was the main contributor to the EU total with a net outflow of 51 bn euro, followed by France and Spain, with 26 bn and 12 bn respectively. On the other hand, with inflows higher than outflows by 18 bn, the United Kingdom was the largest net recipient of FDI capital from the rest of the world. Finland, Sweden and Italy were the only other Member States recording inflows higher than outflows.