Eurostat, the Statistical Office of the European Communities released  its figures on EU27 Foreign Direct Investment for 2007. In 2007, EU27 FDI (foreign direct investment) in extra-EU27 countries (outflows) rose by 53%, from 275 billion euro in 2006 to 420 bn in 2007, while FDI into the EU27 from the rest of the world (inflows) increased by 89%, from 169 bn to 319 bn. In 2007, intra-EU27 FDI flows rose by 13% compared with 2006.

In 2007, the EU27 invested 113 bn euro in the USA and 58 bn in Canada, compared with 79 bn and 30 bn respectively in 2006. EU27 investments in Offshore financial centres rose from 50 bn to 84 bn. Investments grew also in Switzerland (from 23 bn to 34 bn), Russia (from 11 bn to 17 bn) and India (from 3 bn to 11 bn).

The USA invested 145 bn euro in the EU27 in 2007, compared with 74 bn in 2006. Investments in the EU27 from Offshore financial centres (from 30 bn to 98 bn), Switzerland (from 18 bn to 29 bn), Japan (from 14 bn to 18 bn) and India (from 1 bn to 10 bn) also increased, while Canadian investment remained stable at 9 bn.

The United Kingdom, Germany, Luxembourg and France main actors in extra-EU27 FDI flows:

Outflow

• United Kingdom, with outflows of 121 bn euro, and a 29% share of the EU27 total, was the largest investor in extra-EU27 in 2007.
• Luxembourg (78 bn or 19%) and Germany (52 bn or 12%).

Inflow

• With regard to extra-EU27 inflows, the United Kingdom, with 87 bn, and a 27% share of the EU27 total, was the main recipient of FDI.
• Luxembourg (50 bn or 16%).
• France (23 bn or 7%).

What is FDI?

Foreign direct investment (FDI) is the category of international investment that reflects the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy. The lasting interest implies that a long-term relationship exists between the investor and the enterprise, and that the investor has a significant influence on the way the enterprise is managed.