EU COUNTRIES OUTWARD FOREIGN DIRECT INVESTMENT: 95.4 BN ECU IN 1996
49.3 bn in fellow Member States
The European
Union
Eurostat
Outward foreign direct investment (FDI) from EU Member States, both inside and outside the Union, was 95.4 billion ECU last year, 1% up on 1995. Inward FDI flows fell sharply by 15% to 66.8 bn. This means two-thirds of outflows were covered by inflows, compared with four-fifths in 1995.
The data - on flows in equity and other capital but excluding reinvested earnings - are in a report from Eurostat, the Statistical Office of the European Communities in Luxembourg. FDI, says Eurostat, is "one of the major aspects of globalisation".
Of total outflows, 49.3 bn ECU was between Member States and 45.6 bn outside the EU; of the latter, the USA accounted for 13.7 bn and Japan 1.5 bn.
Inflows were 40.9 bn from within the EU and 25.8 bn from the rest of the world with the USA by far the largest contributor with 74% (19.2 bn) - up on 63% in 1995. Main receiver from the US was the UK with 64% of the total.
Japan disinvested in the EU to the tune of 181 million ECU.
France had the largest outflow, 21.2 bn, 47% up on 1995, the biggest absolute rise. Germany was just behind with 20.3 bn, 27% down on 1995, the biggest absolute fall.
Changes in outflows between 1995 and 1996 varied from a 93% fall in Sweden to a 154% rise in Finland.
Sweden recorded the smallest outflow at 337 million ECU. Swedish outward investment in equity and other capital came close to a halt. In Finland it rose sharply.
The Netherlands was up by 72% to 15.9 bn, putting it third. The UK saw a hefty fall, second biggest in absolute terms after Germany: 30% to 10.6 bn, putting it fourth.
The top four countries accounted for 71% of total EU outflows in both 1996 and 1995.
Changes in inflows between 1995 and 1996 ranged from Germany’s -94% to +54% for Belgium/Luxembourg.
Belgium/Luxembourg and the UK had biggest rises in absolute terms, each up by nearly 3.9 billion ECU to stand at 11.0 bn and 14.8 bn respectively. Together this was two-fifths of total EU inflows.
The German figure tumbled from 9.7 billion to 594 million. This brought it to under 1% of the EU total, compared with one-fifth on the outward side.
Despite a 9% fall, France remained the biggest receiver of FDI last year, attracting 16.9 bn, over a quarter of the EU total.
The EU’s net FDI flow (out minus in) last year was up by 87% to 28.6 billion ECU.
Germany remained the biggest net FDI exporter at 19.7 bn ECU, 69% of the total. Next was the Netherlands with 10.6 bn (37%).
In 1995, eight EU countries invested more in other Member States than outside the EU. Last year only Sweden, Italy, Finland and Denmark did so. Sweden even recorded a 530 million disinvestment outside the EU.
The UK continued to receive more from non-EU countries (11.9 bn) than from its EU partners (2.8 bn).
Direct investment from the EU to the USA accounted for 30% of total extra-EU outflows in 1996, down on the 52% recorded the previous year. Main investors were the UK, Germany and France.
The EU invested only 3% of total non-EU flows in Japan in 1996, with Japan disinvesting in the EU by 181 million ECU.
* Eurostat, Statistics in focus, Economy and finance, no 20/97, European Union direct investment flows, First results of 1996 figures.
Foreign direct investment statistics are important for monitoring cross-border financial flows. They have been associated recently with the ‘globalisation’ phenomenon.
FDI statistics have three components: equity and other capital and reinvested earnings. Data in this news release are on equity and other capital and exclude reinvested earnings. Figures including reinvested earnings could give a different perspective on FDI and lead to different conclusions.
Intra-EU outflows and inflows are not the same due to problems of asymmetry.
4. FDI statistical components can fluctuate considerably from year to year.
EU foreign direct investment 1996
In million ECU
| Outflows | Inflows | Net | |||||
| Intra- plus extra-EU | of which intra-EU | Intra plus extra: change over 1995 | Intra- plus extra-EU | of which intra-EU | Intra plus extra: change over 1995 | Intra- plus extra-EU: outflows minus inflows | |
| EU | 95,432 |
49,275 |
1% |
66,822 |
40,947 |
-15% |
28,610 |
| Belgium/Lux | 7,417 |
3,340 |
8% |
10,968 |
10,005 |
54% |
-3,550 |
| Denmark | 1,985 |
1,614 |
-15% |
605 |
208 |
-81% |
1,380 |
| Germany | 20,332 |
9,881 |
-27% |
594 |
739 |
-94% |
19,737 |
| Spain | 3,648 |
1,345 |
33% |
5,048 |
3,689 |
8% |
-1,399 |
| France | 21,217 |
10,393 |
47% |
16,918 |
11,440 |
-9% |
4,299 |
| Italy | 5,092 |
3,732 |
16% |
2,784 |
2,274 |
-24% |
2,308 |
| Netherlands | 15,937 |
7,188 |
72% |
5,296 |
2,165 |
-33% |
10,641 |
| Austria | 1,111 |
357 |
39% |
2,992 |
2,903 |
516% |
-1,882 |
| Portugal | 607 |
190 |
14% |
485 |
539 |
-4% |
122 |
| Finland | 2,695 |
1,959 |
154% |
514 |
779 |
44% |
2,181 |
| Sweden | 337 |
779 |
-93% |
3,389 |
2,015 |
-63% |
-3,052 |
| UK | 10,628 |
3,621 |
-30% |
14,765 |
2,823 |
36% |
-4,137 |
Notes
1. Figures for Greece & Ireland estimated and included in EU totals
2. French figures include short-term credits for first time
3. Austrian data are equity capital only. For EU total, other capital component estimated
4. Data for several countries are provisional
This and more press releases is available online: http://europa.eu.int/en/comm/eurostat/serven/part6/6som.htm
Issued by:
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Jean Monnet Building
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Tel: +352-4301-33 496
+352-4301-33 444
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pressoffice@eurostat.cec.be
For further information on data:
Peter UNGAR
Tel: +352-4301-34 977
Fax: +352-4301-33 859
peter.ungar@eurostat.cec.be