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EU27 FDI flows up 38% in 2006

28 May '07
3 min read

In 2006, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) rose by 35%, from 136 bn in 2005 to 183 billion euro in 2006, while FDI into the EU27 from the rest of the world (inflows) increased by 42%, from 95 bn to 135 bn. 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 bn euro in the USA and 22 bn in Canada, compared with 37 bn and 13 bn respectively in 2005. The USA invested 48 bn, and Canada 5 bn, in the EU27 in 2006, compared with 19 bn and 7 bn respectively 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).

These figures, published by Eurostat, the Statistical Office of the European Communities, come from first FDI results for 2006 and revised data for 2005.

France, Germany, Luxembourg and the United Kingdom main actors in extra-EU27 FDI flows:
France, with outflows of 39 bn euro, 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.

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