Luxembourg, 24/05/2007 (Agence Europe) - According to data published by Eurostat on 24 May, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) rose by 35%, from €136 billion in 2005 to €183 billion in 2006, while FDI into the EU27 from the reset of the world (inflows) increased by 42%, from €95 billion to €135 billion. In 2006, intra-EU27 FDI flows fell by 8% compared with 2005.
The increase in flows with the rest of the world was strongly influenced by the growth in EU27 flows with North America. In 2006, the EU27 invested €71 billion in the USA and €22 billion in Canada, compared with €37 billion and €13 billion respectively in 2005. The USA invested €48 bn in the and Canada €5 billion in the EU27 in 2006, compared to €19 billion and €7 billion in 2005. Excluding North America, EU27 investment in other extra-EU27 countries rose by 5% in 2006. EU27 investments in offshore financial centres rose from €23 bn in 2005 to €47 bn in 2006.
Investments coming from the rest of the world excluding North America increased by 20%, the main growth coming in investments from offshore financial centres (from €18 bn to €37 bn) and Japan (from €6 bn to €11 bn). The Statistical Office of the European Communities also noted that France, with outflows of €39 bn, and a 21% share of the EU27 total, was the largest investor in extra-EU27 in
2006, followed by Germany (€31 bn or 17%) and Luxembourg (€27 bn or 15%). With regard to extra-EU27 inflows, the United Kingdom, with €56 bn, and a 42% share of the EU27 total, was the main recipient of FDI, ahead of Luxembourg (€20 bn or 15%) and Germany (€15 bn or 11%). The role of Luxembourg in EU FDI is mainly explained by the importance of its financial intermediation activity.
In 2006, the EU27 was a net investor in the rest of the world, with outflows higher than inflows by €48 bn (0.4% of GDP). In 2005 outflows were also higher than inflows, by €40 bn (0.4% of GDP). Among the member states, France was the highest net investor outside the EU27 in 2006, with a difference of €26 bn. With inflows higher than outflows by €50 bn, the United Kingdom was the largest net recipient of FDI from extra-EU27.
Spain (€60 bn), the United Kingdom (€57 bn) and France (€48 bn) were the main investors inside the EU27 in 2006. The main recipients of investments from other member states were Luxembourg (€57 bn), the United Kingdom (€55 bn) and France (€45 bn). (ol)