| Author (Person) | King, Tim |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.24, 1.7.04 |
| Publication Date | 01/07/2004 |
| Content Type | News |
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By Tim King Date: 01/07/04 INFLOWS of foreign direct investment (FDI) into European countries in 2003 were almost 25% down on the previous year, according to figures published this week by the Organization of Economic Cooperation and Development (OECD). The figures for Europe, the EU and the eurozone all showed a similar decline, according to the report, but there were considerable differences between states. Most European countries saw declines greater than the 25% average but a few large economies softened the averages. Direct investment flows in Germany fell by 64% and were down by $23 billion (18bn euro) on 2002. FDI flows into the UK fell by almost half in 2003, "from a level that was already unimpressive by historical standards", the OECD said. UK FDI inflows were $14.6bn (12 bn euro), compared with $7.8bn (6.4bn euro) in 2002 and $118.8bn (97.6bn euro) in 2000. France stands out for the volume of investment attracted, with inflows of $47bn (38.6bn euro), only slightly down on 2002 and three times the levels recorded in Germany and the UK. Spain holds up well with $25.6bn (21bn euro) but the flows are believed to have been boosted by holding companies in Spain that invest in foreign securities. Some of the largest relative declines in FDI were in central Europe. FDI dropped in Slovakia by 85% and in the Czech Republic by 70%, partly because of the one-off effects of large investment projects in 2002 in the car and energy sectors. Declining FDI is explained in part by "the sluggish macroeconomic performance of many of the larger OECD economies, not least in Europe" which depressed both outward and inward investment. The largest suppliers of FDI to other countries were the US, France, UK, Belgium, the Netherlands and Japan. The US has become a net provider of direct investment to the rest of the world. Figures released by the Organisation for Economic Co-operation and Development (OECD) in June 2004, reveal that foreign direct investment into Member States in 2003 was almost 25% less than in 2002. |
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| Subject Categories | Trade |
