After significant falls in 2010, European Union foreign direct investment flows more than doubled in 2011, the statistical office Eurostat said on Wednesday. The EU foreign direct investment flows to the rest of the world reached €370 billion in 2011, after having decreased from €316 billion in 2009 to €146 billion in 2010. Foreign direct investment into the EU27 from the rest of the world were at €225 bn in 2011, after having declined from €234 billio in 2009 to €104 billion in 2010.
Half of investments from the rest of the world into the EU came from the US in 2011. Luxembourg (€86 billion) was the main recipient of investments from outside the EU, ahead of Sweden (€16 billion), Spain (€15 billion), the United Kingdom (€14 billion), France (€12 billion) and Germany (€11 billion). The role of Luxembourg in EU FDI is mainly explained by the importance of its financial intermediation activity.
EU investments in all its
major partners rose in 2011, except for Russia. In 2011, the main destinations of EU investments were the USA (€111 billion), and offshore financial centres (€59 billion) were preferred to the emerging markets, as Brazil (€28 billion), China (€18 billion), and India (€12 billion). A disinvestment of €2 billion was recorded with Russia in 2011.
In 2011, the main investors into the EU were the USA (€115 billion), Switzerland (34 billion), offshore financial centres (€16 billion), Canada (€7 billion), Hong Kong (6 bn), Japan and Brazil (both €5 billion).
Luxembourg and the United Kingdom largest investors in the rest of the world. As in previous years, the EU was in 2011 a net investor in the rest of the world, with outflows higher than inflows by €145 billion.