European Union foreign direct investment yearbook 2007 : data 2001-2005.
Date: 2007-09-17
Institutions: Eurostat
Subjects: EU statistics, Eurostat, direct investment, economic statistics, foreign investment

ISSN 1605-2935

Pocketbooks

European Union foreign direct 
investment yearbook
Data 2001-2005

 2007

2007 edition

EuropEan Commission

PAGINA_TITOLO.pdf   1

16-07-2007   17:38:26

 
Europe Direct is a service to help you find answers  
to your questions about the European Union

Freephone number (*):
00 800 6 7 8 9 10 11

(*) Certain mobile telephone operators do not allow access  
to 00 800 numbers or these calls may be billed.

More information on the European Union is available on the Internet (http://europa.eu).

Luxembourg: Office for Official Publications of the European Communities, 2007

ISBN 978-92-79-05567-6
ISSN 1605-2935
Catalogue number: KS-BK-07-001-EN-C

Theme: Economy and finance
Collection: Pocketbooks

© European Communities, 2007
© Cover photo: European Commission

copy.pdf   1

16-07-2007   17:39:10

 
Foreword 

Foreword 

Foreign  direct  investment  (FDI)  is  a  category  of  international 
investment that indicates an intention to acquire a lasting interest in 
an  enterprise  operating  in  another  economy.  It  covers  all  financial 
transactions  between  the  investing  enterprise  and  its  subsidiaries 
abroad.  It  differs  from  portfolio  investments,  because  the  direct 
investor acquires at least 10% of capital. 

Foreign  direct  investment  acquires  increasing  importance  as  an 
indicator  of  the  international  economic  climate.  This  publication 
covers  data  for  the  period  2001-04  for  FDI  stocks  and  2001-05  for 
FDI  flows.  Outward  flows  from  the  European  Union  towards  extra-
EU partners fell from EUR 306  bn in 2001 to EUR 172 bn in 2005. 
During  the  same  period,  foreign  investments  into  the  EU  markets 
dropped by 35 % from EUR 146 bn in 2001 to EUR 94 bn in 2005. 
The data of this publication were extracted in March-June 2007. 

international 

relations  and 

FDI  plays  a  key  role  in  the  globalisation  process  as  an  important 
element  of 
their  development. 
Supplementing  trade,  FDI  creates  more  direct  and  deeper  links 
between  economies.  It  is  a  source  of  extra  capital,  encourages 
efficient  production,  stimulates  technology  transfer  and  fosters  the 
exchange of managerial know-how. It is thus believed to improve the 
productivity of business and to make economies more competitive. 

In the European Union direct investment pocketbook 2007, Eurostat 
presents  and  analyses  harmonised  statistics  on  FDI  flows,  stocks 
and  income  for  the  EU  as  a  whole.  Faced  with  increasing 
globalisation  of  economic  activities,  public  authorities  and  policy-
makers need new statistics. On the basis of the General Agreement 
on  Trade  in  services  (GATS),  Eurostat,  in  conjunction  with  the 
OECD,  has  started  the  compilation  of  foreign  affiliate  statistics 
(FATS)  on  employment,  turnover,  imports  and  exports  of  foreign 
affiliates.  These  data,  now  available  for  some  Member  States  only, 
help  quantify  some  of  the  economic  consequences  of  direct 
investments  and  will  therefore,  together  with  FDI  data,  provide  an 
invaluable  tool  to  measure  the  evolution  of  the  globalisation 
phenomenon. 

(cid:4) 

Foreign direct investment  −  3 

FDI3.pdf   3

16-07-2007   17:01:21

 
 
 
 
        Foreword  

Eurostat  would  like  to  thank  the  following  national  banks  and 
statistical  offices,  without  whom  the  publication  of  this  pocketbook 
would not have been possible: 

Banque Nationale de Belgique 
Ceská Národní Banka
Danmarks Nationalbank  
Deutsche Bundesbank 
Eesti Pank 
Bank of Greece 
Banco de España 
Banque de France 
Central Statistics Office (Ireland) 
Ufficio Italiano dei Cambi 
Central Bank of Cyprus
Latvijas Banka
Lietuvos Bankas
Statec/ Banque Centrale du Luxembourg 
Magyar Nemzeti Bank
National Statistics Office (MT) 
De Nederlandsche Bank 
Österreichisches Nationalbank 
Narodowy Bank Polski
Banco de Portugal 
Banka Slovenije
Národná Banka Slovenska
Suomen Pankki 
Sveriges Riksbank 
Office for National Statistics (UK) 

European Union Direct Investment Pocketbook 2007 

The  direct  investment  pocketbook  provides  users  with  analytical 
aspects of foreign direct investment stocks, flows and income for the 
European Union. The pocketbook has a simple objective: to provide 
political  and  corporate  decision-makers  with  high  quality  statistical 
information  on  direct  investment.  Eurostat  is  able  to  provide 
internationally  comparable  figures,  through  close  cooperation  with 
Member  States,  the  European  Central  Bank  and  the  OECD.  The 
ECB and Eurostat have a shared responsibility for publishing foreign 
direct investment data. While the ECB produces the Euro-area infra-
annual data on an aggregated level, Eurostat produces annual data 
covering  the  whole  European  Union  with  detailed  breakdowns 
according  to  partner  countries  and  economic  activities.  The  data 
processing,  statistical  analyses,  writing  of  the  publication  and 
desktop publishing were carried out by the following team under the 
coordination of Merja Hult: 

Cristina Corsini 
Anne Foltête 
Sylvie Gori 
Antonia Margherita  
Konstantia Petridou  
Rozsypal Rostislav  

4  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   4

16-07-2007   17:01:21

 
 
 
 
 
 
 
Foreword 

Due to significant revisions in the FDI data from the Member States, 
direct comparison of this year’s analysis (regarding the periods until 
2004 for flows and 2003 for stocks and activity breakdown) with the 
analysis  in  the  previous  edition  of  the  pocketbook  (yearbook  2006) 
might not be realistic. 

For detailed statistical tables, please see the website: 
http://ec.europa.eu/eurostat

Direct access: 
http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,45323734&_dad=portal&_
schema=PORTAL&screen=welcomeref&open=/economy/bop&language=en&product
=EU_MAIN_TREE&root=EU_MAIN_TREE&scrollto=178

For more information, or if you have any suggestions on how we 
might improve the publication please contact: 

European Commission 
Eurostat 

Balance of Payments, Unit C4 
Head of Unit Ms. Maria-Helena Figueira 
Bâtiment Bech E4/816 
L-2721 Luxembourg 
Tel. (352) 4301 34730 
Fax (352) 4301 33 859 

(cid:4) 

Foreign direct investment  −  5 

FDI3.pdf   5

16-07-2007   17:01:22

 
 
 
 
 
 
 
FDI3.pdf   6

16-07-2007   17:01:22

Table of contents 

TABLE OF CONTENTS 

EXECUTIVE SUMMARY 

Overview 

What is direct investment? 

Chapter 1: EU direct investment abroad 

1.1 FDI in extra-EU countries: trend and main  

destinations 

1.2 Focus on Candidate Countries 

1.3 FDI income from extra-EU countries 

Chapter 2: Direct investment in the EU 

2.1 Trend and main investors 

2.2 Focus on Candidate Countries 

2.3 Income paid on inward EU FDI 

Chapter 3: The role of emerging markets 

3.1. Latin America: Promising EU FDI outward  

flows in 2004 

3.2. Far East Asia: EU FDI to NICs1  rose 

3.3. Mediterranean partner countries: towards a  

better partnership?  

3.4. Central Eastern European countries and  

Russia: Stable EU FDI outflows in 2004 

Chapter 4: EU FDI by economic activity 

4.1. Comparing EU inward and outward FDI:  

net position by economic activity 

4.2. Outward EU FDI by economic activity: 

services attracted extra-EU FDI outflows of 
EUR 98 bn in 2003 

4.3. Inward FDI by economic activity: services  

attracted extra-EU FDI inflows of EUR 104 bn  
in 2003 

Annexes 

Annex 1. Statistical tables 

Annex 2. Exchange rates 

Annex 3. Nomenclature 

Annex 4. BOP zones 

Annex 5. Glossary 

(cid:4) 

8 

9 

22 

25 

27 

35 

37 

41 

43 

52 

55 

59 

65 

71 

77 

82 

85 

88 

89 

96 

103 

105 

121 

123 

127 

141 

Foreign direct investment  −  7 

FDI3.pdf   7

16-07-2007   17:01:22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Executive summary   

EXECUTIVE SUMMARY 

The EU had 19 % of world FDI inflows in 2005 

(cid:190)  World  FDI  inward  flows  increased  in  2005  by  9%;but  EU  FDI  inward 

flows increased by 77% 

EU FDI inward flows from extra-EU EUR 94 bn in 2005 

(cid:190)  The main investor country was the USA with 18 % of the inward flows in 

2005 

(cid:190)  The United Kingdom with 18 % of the total EU inward stocks at end-2004 

was the main destination of FDI  

United  States,  Switzerland  and  Canada: 
destinations of extra-EU FDI outflows in 2005 

the 

top 

three 

(cid:190)  EU  FDI  outward  flows  to  extra-EU  countries  EUR  172 bn  in  2005, 

increase of 26 % from 2004  

(cid:190)  EU  FDI  outward  flows  to  United  States  were  EUR  29 bn  or  17%  of  the 

total extra-EU FDI 

Net FDI income record high at EUR 68  bn in 2005 

(cid:190)  Income from EU FDI abroad yielded 8.76 % in 2005 

(cid:190)  Income  paid  on  inward  FDI  increased  by  26 %  in  2005  reaching  EUR 

110 bn 

Stable EU FDI outward flows to emerging markets in 2005 

(cid:190)  Emerging markets received 36 % of total EU FDI outward flows in 2005, 

Far East Asia being the main target 

(cid:190)  In 2005, Brazil was the main destination of EU FDI outward flows to Latin 

America 

(cid:190)  EU FDI flows to Mediterranean partner countries amounted to EUR 5.6 bn 

in 2005 

(cid:190) EU  flows  to  Central/Eastern  European  countries  and  Russia  more  than 

doubled in 2005. Russia continues to be the main host country 

Sharp fall in EU-25 outward FDI in the services sector in 2004 

(cid:190)  Services attracted extra-EU FDI outflows of EUR 52 bn and extra-EU FDI 

inflows of EUR 34 bn in 2004 

(cid:190)   FDI  flows  to  extra-EU  countries  centred  on  financial  intermediation  in 

2004 

8  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   8

16-07-2007   17:01:22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview 

FDI3.pdf   9

16-07-2007   17:01:22

 
 
FDI3.pdf   10

16-07-2007   17:01:22

  Overview 

World FDI inflows increased by 9 % in 2005 

Compared  with  2004,  world  FDI  inflows  (excluding  intra-EU  flows) 
increased by 9 % to EUR 492 bn in 2005 (EUR 453 bn in 2004). EU 
FDI inflows 1 increased by 77 % to EUR 94 bn, resulting in a share of 
19 %  of  world  FDI  inflows  and  surpassing  the  United  States,  which 
accounted for 16 % of world FDI inflows. The share of world inflows 
to  developing  countries  increased  to  61 %,  the  highest  level  since 
1997, whereas inflows to developed countries were 39 % of the total 
flows. 

Chart 0.1 

World FDI flows by recipient, 2001-2005, EUR bn 

(EUR bn)

1000

750

500

250

0

EU share  (%)

100

75

50

25

0

2001

2002

2003

2004

2005

 EU (from extra-EU)
 Other developed countries
 EU share (right-hand scale)

 USA
 Other countries

Source: Eurostat, UNCTAD 

Chart 0.2 

Weight of extra- and intra-EU FDI in total EU FDI flows 

%

100

80
60

40
20

0

2001-2003 average

2004-2005 average

Intra

Extra

1  Data  in  this  yearbook  relate  to  the  EU-25.  See  Chapters  1  and  2  for  more 
detail  on  EU  inward  and  outward  FDI.  Data  for  world  flows  were  calculated 
using Eurostat data for the EU and UNCTAD data for other countries. 

(cid:4) 

Foreign direct investment  −  11 

FDI3.pdf   11

16-07-2007   17:01:22

 
 
 
 
 
 
 
 
                                                 
      Overview 

Whereas  EU  FDI  inflows  increased  by  77 %  between  2004  and 
2005,  intra-EU  flows  increased  by  114 %  (see  Table  0.2).  The 
percentage  of  intra-EU  flows  out  of  total  FDI  inflows  remains  high 
and  has  even  increased  over  the  past  few  years.  The  weight  of 
cumulative intra-EU flows reached 80 % for the period 2004-05. 

Chart 0.3 

EU FDI stocks inward, outward and net, 2001-2005, EUR bn  

2400

2000

1600

1200

800

400

0

2001

2002

2003

2004

2005

outward stocks

inward stocks

net assets

EU  outward  FDI  stocks  increased  for  the  third  consecutive  year, 
rising by 16 %, from EUR 2 048 bn at end-2004 to EUR 2 380 bn at  
end-2005. 

Similarly, EU FDI inward stocks increased by 10 % to EUR 1 745 bn 
at end-2005. Given the sizeable increase in outward stocks, net EU 
FDI  assets  increased  to  EUR  625 bn  at  end-2005.  The  net  asset 
position  increased  for  the  first  time  after  continued  decline  since 
2001. 

North  America  owned  52 %  of  EU  FDI  inward  stocks  at 
end-2004  

The value of EU FDI inward stocks increased from EUR 1 296 bn at 
end-2001  to  EUR  1 581  bn  at  end-2004  (see  Chart  0.3).  Of  these 
stocks,  North  America  held  52 %  (compared  with  61 %  at  the  end-
2001). 

The share of Europe (non-EU) increased from 16 % at the end-2001 
to 20 % at the end-2004, totalling EUR 316 bn.  

12  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   12

16-07-2007   17:01:22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Overview 

Inward  stocks  held  by  South  and  Central  America  increased  by 
61 %, accounting for a share of 14 % of EU FDI inward stocks.  

The  shares  of  EU  FDI  inward  stocks  of  other  investor  zones 
remained fairly stable between 2001 and the end-2004. 

Chart 0.4  

EU-25 FDI inward stocks by extra-EU main investor  
(end-2004) 

Oceania
2%

not allocated
2%

Africa
1%

Asia
9%

South and 
Central 
America
14%

Europe (non-
EU) 20%

North America
52%

Chart 0.5  

EU-25 FDI inward stocks by extra-EU main investor,  
(end-2001) 

Oceania
2%

not allocated
1%

Africa
1%

Asia
8%

South and 
Central 
America
11%

North America
61%

Europe (non-
EU)
16%

(cid:4) 

Foreign direct investment  −  13 

FDI3.pdf   13

16-07-2007   17:01:23

 
 
 
 
 
 
 
 
 
 
      Overview 

The EU's share of world FDI outflows increased to 49 % 
in 2005 

After  the  rebound  of  world  FDI  outflows  in  2004,  a  decline  was 
observed in 2005. World FDI outflows – excluding intra-EU FDI flows 
– totalled EUR 352 bn (EUR 521 bn in 2004, a 32 % decrease) 2. EU 
FDI  outflows,  at  EUR  172 bn,  increased  by  26 %  from  2004, 
reaching  the  highest  level  since  2001  (EUR  306 bn).  Similarly,  EU 
inflows increased by 77 % from EUR 53 bn to EUR 94 bn. 

Chart 0.6 

World FDI flows by origin, 2001-2005, EUR bn 

(EUR bn)

EU share (%)

1000

750

500

250

0

-250

2001

2002

2003

2004

2005

EU (to extra-EU)
Other developped countries
EU share (right-hand scale)

USA
Other countries

100

75

50

25

0

The  geographical  distribution  of  world  FDI  outflows  by  investor 
country  continued  to  show  the  dominance  of  developed  countries 
(70 %).  This  share  is  lower  than  in  previous  periods  due  to 
disinvestments  by  the  United  States.  Conversely,  the  share  of  the 
EU  in  world  FDI  outflows  increased  considerably  in  2005,  to  49 % 
(from 26 % in 2004).  

There was a significant decline in outward FDI flows from the United 
States,  dropping  from  EUR  179 bn  in  2004  to  a  disinvestment  of 
EUR  -10 bn  in  2005.  This  was  mainly  due  to  an  increase  in 
distributed profits of US-owned foreign affiliates, which led to a large 
decline in reinvested earnings. 3  

2 World FDI inflows presented in Chart 0.1 and world FDI outflows presented 
in Chart 0.6 are not equal due the asymmetry resulting from statistical error. In 
2004 the asymmetry was lower than in 2005 (15 % against 8 %). 
3 For more details, refer to the UNCTAD World Investment 2006 report on the 
effects of the Homeland Investment Act on the United States outward FDI. 

14  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   14

16-07-2007   17:01:23

 
 
 
 
 
 
 
 
                                                 
  Overview 

United  States,  Switzerland  and  Canada 
destinations of EU FDI outward flows in 2005  

top 

three 

In 2005, the United States and Switzerland regained their positions 
as  the  main  destinations  of  EU  FDI  outflows.  Of  the  EUR  172 bn 
total of EU FDI outward flows, EUR 29 bn was invested in the United 
States. Switzerland received EUR 20 bn, followed by Canada (EUR 
12 bn) and Japan (EUR 11 bn). 

The United States and Switzerland also remained the main investors 
in  the  EU  in  2005,  accounting  for  respective  shares  of  18 %  and 
17 % of the total extra-EU investments received (EUR 94 bn). 

Table 0.1 

Main partners for EU FDI outward and inward flows in 2005* 

Outward flows
2005

Inward flows
2005

EUR bn

%

EUR bn

%

Extra EU of which
Europe (non-EU) of which
Switzerland
Norway
Candidate Countries**
Bulgaria
Romania
Croatia
Turkey
Russia
Belarus
Ukraine
Africa
North America of which
USA
Canada
Central America of which
Mexico
South America of which:
Brazil
Argentina
Asia of which
Japan
China (incl. Hong Kong)
Indonesia
India
South Korea
Taïwan
Oceania of which
Australia

OECD (non-EU)
Offshore financial centres

172
61
20
0
10
2
4
1
3
9
0
6
17
41
29
12
11
3
4
5
-1
40
11
9
4
2
4
3
-6
-7

76
26

100%
35%
11%
0%
6%
1%
2%
1%
2%
5%
0%
3%
10%
24%
17%
7%
6%
1%
3%
3%
-1%
23%
6%
5%
2%
1%
2%
2%
-3%
-4%

44%
15%

94
41
16
3
1
0
0
0
0
4
0
0
1
25
17
8
2
1
6
5
0
9
6
1
0
0
1
0
6
6

59
18

100%
43%
17%
3%
1%
0%
0%
0%
0%
4%
0%
0%
1%
27%
18%
8%
2%
1%
7%
6%
0%
9%
7%
2%
0%
0%
1%
0%
6%
6%

63%
19%

* The sum of continents does not always equal total extra-EU because of not 
allocated flows. 
Parts may be higher than totals because of disinvestment. 
** Candidate countries: Bulgaria, Croatia, Romania and Turkey. 

(cid:4) 

Foreign direct investment  −  15 

FDI3.pdf   15

16-07-2007   17:01:23

 
 
 
 
 
 
 
 
      Overview 

North  America  hosted  39 %  of  the  EU's  outward  FDI 
stocks at end-2004 

North America, hosting EU FDI stocks of EUR 801 bn, continued to 
be  by  far  the  favourite  destination  of  EU  FDI,  even  if  its  share 
dropped by 11 percentage points from the situation at end-2001.  

The  stocks  held  in  non-EU  Europe  accounted  for  20 %  of  the  EU's 
outward stocks in 2004, an increase of EUR 58 bn and 3 percentage 
points from the situation at end-2001. 

The  combined  share  of  South  and  Central  America  increased  from 
14 % at end-2001 to 17 % at end-2004. However, FDI stocks held in 
South America decreased by 14 % and increased by 89 % in Central 
America over the period in question. 

Asia  also  increased  its  share  of  EU  FDI  outward  stocks  to  15 %  at 
end-2004,  making  it  the  fourth  biggest  destination  zone.  EU  FDI 
stocks in Asia amounted to EUR 316 bn at end-2004, a rise of 26 % 
since 2001. 

At  end-2004,  the  share  of  total  extra-EU  FDI  stocks  in  Africa 
increased only by one percentage point to 4 %, but in absolute terms 
investments  grew  by  51 %,  from  EUR  60 bn  at  end-2001  to  EUR 
91 bn at the end-2004. 

Oceania kept its 3 % share of total extra-EU FDI  stocks. The value 
of  the  stocks  held  in  Oceania  increased  from  EUR  53 bn  at  end-
2001 to EUR 60 bn at end-2004. 

Chart 0.7 

EU-25 FDI outward stocks by main destination (end- 2004) 

not allocated
2%

Oceania
3%

North America
39%

Africa
4%

Asia
15%

South and 
Central America
17%

Europe
 (non-EU) 20%

16  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   16

16-07-2007   17:01:23

 
 
 
 
 
 
 
 
 
 
 
  Overview 

Chart 0.8 

EU-25 FDI outward stocks by main destination (end - 2001) 

Oceania
3%

not allocated
1%

Africa
3%

Asia
12%

South and 
Central 
America
14%

North America
50%

Europe 
(non-EU) 17%

North American FDI assets in the EU higher than EU FDI 
assets in North America at end-2004 

Total  EU  FDI  net  assets  (outward  stocks  minus  inward  stocks) 
amounted to EUR 468 bn at end-2004 compared to EUR 722 bn at 
end-2001  (see  Chart  0.3).  At  end-2004,  net  assets  with  North 
America  turned  negative  (EUR  -16 bn)  from  a  net  position  of  EUR 
215 bn in 2001.  

Whereas  net  assets  in  Europe  (non-EU)  and  in  South  and  Central 
America decreased between 2001 and 2004, net assets in Asia and 
Africa increased by 19 % and 54 % respectively. 

Chart 0.9  

EU FDI net* assets, 2001 and 2004, EUR bn 

200

150

100

50

0

-50

North
America

Europe
(non-EU)

South and
Central
America

Asia

Africa

Oceania

*Net= Outward - inward 

2001

2004

(cid:4) 

Foreign direct investment  −  17 

FDI3.pdf   17

16-07-2007   17:01:23

 
 
 
 
 
 
 
 
      Overview 

Most FDI still going to services 

Extra-EU outward stocks were marked by the increased dominance 
of services activities 4 (from 62 % at end-2001 to 69 % at end-2004), 
accompanied by a decline in the share of manufacturing (from 26 % 
at  the  end-2001  to  19 %  at  the  end  of  2004).  The  share  of  Other 
activities 5  remained  stable.  Detailed  information  on  the  breakdown 
by activity is given in Chapter 4 for FDI with the main EU partners. 

Chart 0.10  

Extra-EU FDI outward stocks by main activity  - 2001 and 2004  

%

100

80

60

40

20

0

2001

2004

Services

Manufacturing

Others

The  relative  importance  of  services  activities  was  even  more 
pronounced  for  inward  stocks:  at  EUR  1 198 bn  they  accounted  for 
76 % of total EU FDI inward stocks at the end-2004. 

Chart 0.11 

EU FDI inward stocks by extra-EU main activity– 2001 and 2004 

%

100

80

60

40

20

0

2001

2004

Services

Manufacturing

Others

4  Services  activities  consist  of:  Trade,  Hotels  and  restaurants,  Transport, 
Telecommunication,  Financial  Intermediation,  Business  services  (includes 
Business  and  Management  consulting,  Advertising,  Computer  activities  and 
Research  and  Development),  Real  estate  services,  Other  services  not 
elsewhere classified. 
5  Other  activities  include  Agriculture  and  fishing,  Mining  and  quarrying, 
Electricity, gas and water, Construction and unallocated. 

18  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   18

16-07-2007   17:01:23

 
 
 
 
 
 
                                                 
  Overview 

Net FDI income record high at EUR 68 bn in 2005 

At  EUR  178 bn  in  2005,  EU  income  earned  from  FDI  abroad 
reached  its  highest  level  over  the  period  under  consideration, 
making  for  an  18 %  rise  from  2004.  This  result  confirmed  the 
recovery  observed  since  2003:  after  two  years  of  being  stable  at 
EUR  86 bn  (both  in  2001  and  2002),  EU  income  from  FDI  abroad 
increased significantly, gaining 75 % between 2002 and 2004. 

Income paid to foreign owners in 2005 recorded a 26 % increase to 
EUR  110 bn.  The  resulting  net  FDI  income  amounted  to  a  record 
EUR  68 bn  in  2005,  as  compared  with  EUR  3 bn  in  2001.  These 
results made up 0.63 % of the EU's GDP in 2005, as against 0.03 % 
in 2001. 

Rates  of  return 6  experienced  similar  results  with  an  increase  from 
7.5 % in 2004 to 8.7 % in 2005 for the rate of return on EU outward 
stocks  and  from  5.8 %  to  6.9 %  for  the  rate  of  return  earned  by 
foreign owners. As shown in Chart 0.12 (right-hand scale), in the last 
three years, the rate of return on EU outward FDI was higher than on 
EU inward FDI. 

Chart 0.12 

EU FDI income and rates of return 2001-2005, EUR bn 

income 
(EUR bn)

200
180
160
140
120
100
80
60
40
20
0

return rate 
( % )

12

9

6

3

0

2001

2002

2003

2004

2005

EU Income from extra-EU FDI 

EU FDI income paid to extra-EU

Rate of return on outward FDI stocks 

Rate of return on inward FDI stocks 

Chart 0.13 details net FDI income by main partner. While the EU net 
income with the EFTA countries was negative from 2001 to 2003, it 
turned positive, at EUR 3 bn, in 2004 and remained practically stable 
at EUR 4 bn in 2005. With the exception of 2002, when EU income 
from  the  United  States  and  EU  income  paid  to  the  United  States 
were  balanced,  EU  FDI  net  income  with  the  United  States  was 
negative for the whole period covered.  

6 Rate of return in t  = (Income paid in t) / (Stocks at the end of the period t-1).

(cid:4) 

Foreign direct investment  −  19 

FDI3.pdf   19

16-07-2007   17:01:23

 
 
 
 
 
 
 
                                                 
 
      Overview 

As  regards  Japan,  results  were  close  to  equilibrium  for  all  years, 
varying  from  EUR  -2 bn  to  EUR  1 bn,  while  net  income  with  other 
countries (OECD and non-OECD) was positive for the whole period 
under consideration. 

Chart 0.13  

EU FDI net income by main partner 2001-2005, EUR bn 

60

40

20

0

-20

2001

2002

2003

2004

2005

USA

EFTA 

Japan

Other OECD (non-EU)

Other countries

20  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   20

16-07-2007   17:01:23

 
 
 
  Overview 

Table 0.2 

EU FDI capital flows 2001-2005, EUR mn

 Total outflows to extra-EU
 Equity capital
 Other capital
 Reinvested earnings
 Total inflows from extra-EU
 Equity capital
 Other capital
 Reinvested earnings
 Total intra-EU flows*
 Equity capital
 Other capital
 Reinvested earnings

2001
 306 140
 204 111
 87 473
 14 556
 145 867
 42 065
 81 714
 22 094
 365 510
 280 762
 68 906
 15 845

2002
 133 897
 138 210
- 50 685
 46 370
 126 567
 85 983
 18 384
 22 204
 361 129
 273 176
 76 119
 11 833

2003
 135 711
 106 051
 7 761
 21 910
 123 541
 85 906
 14 409
 23 221
 251 268
 164 864
 61 069
 25 334

2004
 136 388
 86 037
- 6 379
 56 721
 53 072
 36 318
- 10 641
 27 397
 194 985
 128 194
 19 518
 47 275

2005
 171 757
 102 349
 17 495
 51 907
 94 149
 71 823
 33 420
- 11 093
 416 680
 257 058
 95 697
 63 928

EU total FDI income 2001-2005, EUR mn

 Extra-EU, credits
 Extra-EU, debits
 Extra-EU, net
 Intra-EU*

2001
 86 198
 83 183
 3 017
 117 199

2002
 85 769
 68 407
 17 360
 113 709

2003
 103 704
 60 137
 43 567
 121 139

2004
 150 424
 86 827
 63 599
 152 976

2005
 178 097
 109 514
 68 583
 182 295

EU FDI stocks at the end of the year, 2001-2004, EUR mn

 Total extra-EU assets
 Equity capital and reinvested earnings
 Other capital
 Total extra-EU liabilities
 Equity capital and reinvested earnings
 Other capital
 Total intra-EU stocks*
 Equity capital and reinvested earnings
 Other capital

2004

2003

2001

2002

 353 521

 408 131

2005
2 017 386 1 904 845 2 011 069 2 048 346 2 380 303
1 609 252 1 551 341 1 678 283 1 721 461 2 040 244
 340 062
 332 780
1 295 598 1 265 279 1 484 575 1 580 532 1 744 823
 993 326 1 082 754 1 207 533
 537 292
 497 768
 491 247
2 656 338 2 792 869 3 054 812 3 300 533 3 810 415
2 049 913 2 151 806 2 389 280 2 609 054 3 040 227
 770 189
 665 536

 808 642
 456 637

 810 739
 484 861

 641 055

 606 427

 326 884

 691 479

* Intra-EU data are the average between inward and outward as declared by 
Members States. 

(cid:4) 

Foreign direct investment  −  21 

FDI3.pdf   21

16-07-2007   17:01:24

 
 
 
 
      Overview 

What is direct investment? 

•  Foreign  direct 

is 

investment 

the  category  of 

international 
investment  in  which  an  enterprise  resident  in  one  country  (the 
direct  investor)  acquires  an  interest  of  at  least  10  %  in  an 
enterprise  resident  in  another  country  (the  direct  investment 
enterprise).  Subsequent 
affiliated 
enterprises are also direct investment transactions. 

transactions 

between 

•  As  it  gives  the  investor  an  effective  voice  in  the  management  of 
the  enterprise  and  a  substantial  interest  in  its  business,  FDI 
implies  a  long-term  relationship  between  the  direct  investor  and 
the direct investment enterprise. 

•  Investment  may  take  place  through  the  establishment  of  an 
entirely new firm, so-called ‘greenfield’ investment, or through the 
complete or partial purchase of an existing firm via a merger or an 
acquisition.  

Why FDI takes place 

Two  main  reasons  are  given  for  why  investors  engage  in  foreign 
direct  investment:  vertical  and  horizontal  FDI.  A  mixture  of  both  is 
possible and is often the case. 

•  Vertical FDI 

In this case, a company ‘slices’  its production chain by allocating 
different  parts  to  those  countries  in  which  production  costs  are 
lower.  Progress  achieved  in  recent  years  in  telecommunications 
and  data  management  has  enabled  firms  to  allocate  their 
production  processes  more  easily  through  so-called  supply  chain 
management.  

•  Horizontal FDI 

Here, a company ‘duplicates’ its production chain in order to place 
its  production  closer  to  foreign  markets.  The  investment  decision 
may  result  from  a  trade-off  between  fixed  costs  (the  new  plant) 
and variable costs (high tariffs and transport costs associated with 
exporting  to  that  country).  Large  markets  tend  to  be  more 
competitive,  making  imports  less  attractive,  and  it  is  there  that 
major investors tend to carry out this type of investment. Acting as 
a  substitute  to  trade,  horizontal  FDI  gives  investors  strategic 
market access and reduces delivery time. 

•  A third possible explanation for FDI are conglomerate M&As which 
take  place  between  companies  seeking  to  diversify  risk  and  to 
deepen economies of scope. 

22  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   22

16-07-2007   17:01:24

 
 
 
 
 
 
 
 
 
 
 
 
  Overview 

Advantages of FDI 

For the investor 

•  For the investing firm, FDI usually means access to new markets 

and better knowledge of those markets. 
This  may,  however,  come  at  higher  international  transaction  and 
organisational costs. 

•  In some service industries, local market presence (e.g. a banking 
outlet  or  representative  office)  may  be  a  prerequisite  for  serving 
that market. 

•  Lower  labour,  raw  material  and  intermediary  input  costs  may 

determine where the direct investment enterprise is located. 

For the investee 

•  As it is less liquid and tradable than portfolio investment, FDI flows 
are  usually  less  volatile.  Especially  in  the  case  of  developing 
countries,  this  type  of  financing  reduces  the  risk  of  external 
speculation  and  liquidity  crises.  FDI  contributes  positively  to  the 
recipient’s  balance  of  payments,  both 
initial 
transaction and by adding to export growth. 

through 

the 

•  FDI  contributes  to  growth  in  the  target  country  by  increasing  the 
production  base,  by  creating  employment  and  through  multiplier 
effects (e.g. orders from other local industries). By contributing to 
higher  competition,  FDI  can  lead  to  an  improvement  of  other 
domestic  firms’  efficiency  and  product  quality.  It  may  conversely 
contribute  to  the  ‘crowding  out’  of  local  firms,  i.e.  the  closure  of 
other  uncompetitive  production  units.  FDI  acts  as  a  catalyst  for 
domestic  investment  and  technological  progress  through  the 
transfer  of  technology  to  the  recipient.  Similarly,  it  may  raise 
management expertise and marketing skills 

(cid:4) 

Foreign direct investment  −  23 

FDI3.pdf   23

16-07-2007   17:01:24

 
 
 
 
 
 
 
 
 
FDI3.pdf   24

16-07-2007   17:01:24

(cid:3)

  
 
Chapter 1:  
EU direct investment abroad 

FDI3.pdf   25

16-07-2007   17:01:24

 
 
FDI3.pdf   26

16-07-2007   17:01:24

(cid:3)

 
Chapter 1  
 EU direct investment abroad 

Since  2002,  EU  FDI  outflows  have  been  increasing,  reaching  EUR 
172 bn in 2005. 

1.1 FDI in extra-EU countries: trend and main 
destinations 

EU FDI outward flows in 2005 increased by 26 % from 
2004 

After the sharp  decline in 2002, and the period of moderate  growth 
during 2003-04, EU FDI outward flows increased by 26 % from 2004 
to 2005. 

Between  2001-04,  the  main  recipient  of  EU  FDI  outflows  was  the 
American  continent.  The  highest  share  was  recorded  in  2001,  with 
69 % of total extra-EU flows, dropping to 33 % in 2005. 

The  European  continent  (non-EU  countries),  the  second  main 
destination  since  2002,  received  35 %  of  EU  investment  flows  in 
2005,  thus  becoming  the  most  attractive  destination.  Asia  kept  its 
third place with a 23 % share of the total EU FDI outflows.  

With EUR 17 bn and a share of 10 %, Africa was fourth, followed by 
Oceania and Polar regions, for which a disinvestment of EUR -6 bn 
was observed.  

The  United  Kingdom,  with  outflows  of  EUR  43 bn  and  a  share  of 
25 %  of  the  EU  total,  was  the  largest  investor  in  extra-EU  in  2005, 
followed  by  Luxembourg  (EUR  34 bn  or  20 %)  and  France  (EUR 
25 bn or 14 %). 

Chart 1.1 

Extra-EU outward FDI flows, by main continents, EUR bn 

Total

300

250

200

150

100

50

0

2001

2002

2003

2004

2005

  Europe (non EU)
  America
  Oceania and Polar regions

  Africa
  Asia
  Total (right-hand scale)

Foreign direct investment  −  27 

215

190

165

140

115

90

65

40

15

-10

(cid:4) 

FDI3.pdf   27

16-07-2007   17:01:24

 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 1  
        EU direct investment abroad  

The USA was the main recipient of EU FDI flows in 2005 

At country level, the largest recipient of EU FDI investment flows in 
2005  was  the  United  States  (EUR  29 bn),  followed  by  Switzerland 
(EUR  20 bn),  Canada  (EUR  12 bn)  and  Japan  (EUR  11 bn).  EU 
investment flows into these countries represented respectively 17 %, 
11 %, 7 % and 6 % of total extra-EU investment flows. 

EU  FDI  outflows  to  all  these  destinations  increased  between  2004 
and 2005, with Switzerland experiencing the highest rise in absolute 
terms, jumping from a disinvestment of EUR -11 bn to an investment 
of EUR 20 bn. 

EU investments in China (including Hong Kong) declined from EUR 
14 bn in 2004 to EUR 9 bn in 2005, representing 5 % of total extra-
EU FDI outflows. 

The  EU  invested  EUR  9 bn  in  Russia  in  2005,  50 %  up  on  2004. 
Ukraine emerged as a significant partner, receiving investment flows 
of  EUR  6 bn,  representing  3 %  of  the  total  extra-EU  investments  in 
2005. 

EU  investment  flows  to  Indonesia  increased  considerably,  rising 
from  EUR  0.1 bn  in  2004  to  EUR  3.9 bn  in  2005,  whereas 
investments in India doubled in 2005, reaching EUR 2 bn. 

Table 1.1 

Geographical distribution of EU FDI assets and most recent outward flows,

(EUR bn and %)                                                          

Stocks at end 
Flows

2001 2002 2003 2004

2005

  395
  264
  228
  10
  1
  20
  65
  15
  50
  27

  343
  235
  201
  11
  1
  19
  60
  13
  48
  23

  403
  310
  269
  15
  1
  27
  84
  19
  66
  37

 Extra-EU
Europe (non-EU)
  EFTA
      Switzerland
   Russia
   Ukraine
   Candidate Countries*
Africa
   North African countries
   Other African countries
      Republic of South Africa
America
   North American countries
      Canada
      USA
   Central American countries
      Mexico
   South American countries
      Brazil
Asia
   Near and Middle East countries
   Other Asian countries
     China
     Hong Kong
     India
     Indonesia
    Japan
    Korea**
    Taiwan
Oceania and Polar regions
     Australia
     New Zealand
Extra-EU not allocated
OECD countries (non-EU)
* Bulgaria, Romania, Turkey and Croatia. 
** Republic of South Korea. 
n.a. : Data not available yet. 

 2 017  1 905  2 011  2 048
  401
  292
  247
  21
  2
  32
  91
  22
  69
  37
 1 277  1 066  1 123  1 154
  801
 1 001
  75
  85
  740
  915
  210
  111
  39
  28
  142
  166
  71
  73
  316
  250
  19
  16
  296
  234
  21
  19
  86
  78
  10
  6
  7
  11
  76
  36
  19
  12
  6
  7
  60
  53
  54
  48
  5
  5
  35
  34
 1 372  1 264  1 323  1 312

  829
  81
  748
  157
  30
  137
  59
  296
  15
  281
  19
  85
  7
  7
  69
  16
  5
  60
  55
  4
  56

  843
  83
  760
  125
  28
  97
  44
  247
  15
  232
  20
  65
  6
  9
  52
  14
  6
  55
  49
  5
  77

28  −  Foreign direct investment 

2004
  136 100%  2 380
26%   172
-3% n.a.
-8%   268
  31
4%
n.a.
0%
n.a.
4%
n.a.
10%
n.a.
2%
n.a.
8%
n.a.
4%
n.a.
36%
n.a.
4%
-2%
  98
6%   856
n.a.
26%
n.a.
8%
n.a.
6%
  80
4%
n.a.
25%
n.a.
1%
n.a.
24%
  31
2%
  96
8%
n.a.
1%
  0
0%
  79
4%
n.a.
1%
n.a.
1%
n.a.
1%
n.a.
1%
1%
n.a.
1%   382
n.a.

  36
-  4
-  11
  6
  0
  5
  13
  3
  11
  6
  49
  6
-  3
  8
  35
  11
  8
  5
  35
  2
  32
  3
  11
  1
  0
  6
  2
  1
  2
  1
  1
  2
  24

17%

2005
  172 100%
35%
12%
11%
5%
3%
6%
10%
0%
10%
5%
33%
24%
7%
17%
6%
1%
3%
3%
23%
2%
21%
3%
2%
1%
2%
6%
2%
2%
-3%
-4%
0%
2%
44%

  61
  20
  20
  9
  6
  10
  17
  1
  17
  9
  57
  41
  12
  29
  11
  3
  4
  5
  40
  3
  37
  6
  3
  2
  4
  11
  4
  3
-  6
-  7
  1
  3
  76

(cid:4)(cid:3)

FDI3.pdf   28

16-07-2007   17:01:25

 
 
Chapter 1  
 EU direct investment abroad 

The American continent: Investments in Latin America 
down in 2005 

EU FDI flows to America fell by 73 % between 2001 and 2005, from 
EUR  211 bn  to  EUR  57 bn.  However,  the  great  decline  was 
observed between 2001 and 2002, and since then, EU investments 
in America have been picking up again.  

In  2005,  North  American  countries  received  24 %  of  total  extra-EU 
outflows. EU investment flows to North America have varied widely, 
mainly as a result of the fluctuations in EU investments in the United 
States.  

EU investment flows to Central America reached their peak in 2002, 
with EUR 41 bn. This was followed by a disinvestment of EUR -7 bn 
in 2003 and investment flows of EUR 35 bn in 2004 and EUR 11 bn 
in 2005. The main recipient of EU investments in Central America in 
2005 was Mexico, with investments of EUR 3 bn. 

EU FDI flows to South America declined by 43 % between 2004 and 
2005. Outflows of EUR 4 bn in 2005 represented a 3 % share of total 
extra-EU  outward  flows.  The  main  recipient  of  EU  investments  in 
South America was Brazil, receiving EUR 5 bn in 2005. 

The  biggest  investors  in  the  American  continent  in  2005  were  the 
United Kingdom for North American countries, with EUR 34 bn, and 
France  for  South  American  countries,  with  EUR  1 bn.  The  Central 
American  countries  were  most  attractive  for  Italy  (EUR  3 bn)  and 
Spain (EUR 2 bn). 

Further  information  on  EU  investments  in  Latin  America  can  be 
found in Chapter 3. 

Chart 1.2 

Extra-EU FDI flows towards America, EUR bn 

170

140

110

80

50

20

-10

(cid:4) 

Total

250

200

150

100

50

0

2001

2002

2003

2004

2005

Central American countries
North American countries

South American countries
Total (right scale)

Foreign direct investment  −  29 

FDI3.pdf   29

16-07-2007   17:01:25

 
 
 
 
 
 
 
 
 
 
          Chapter 1  
        EU direct investment abroad  

European (non-EU) countries: 35 % of EU FDI extra-EU 
outflows in 2005 

The  share  of  EU  FDI  outflows  directed  to  European  (non-EU) 
countries  has  consistently  been  above  20 %  since  2002,  reaching 
35 %  in  2005.  In  absolute  terms,  these  investments  were  at  their 
peak in 2005 with EUR 61 bn. 

Switzerland,  receiving  investment  flows  worth  EUR  20 bn  in  2005, 
was the main partner country during the period in question, except in 
2004, when the EU disinvested EUR -11 bn.  

Investments  in  Russia,  Turkey,  Bulgaria  and  Romania  have  been 
rising  steadily  since  2002.  Chart  1.3  illustrates  the  shares  of  extra-
EU  FDI  flows  received  by  the  main  European  partner  countries. 
Further  details  on  EU  investments  in  the  Candidate  Countries  are 
given in section 1.2 and the Central and Eastern European countries 
in Chapter 3. 

Chart 1.3 

Extra-EU FDI flows towards Europe (non-EU) as % share of 
total extra-EU in 2005 

Others, 8%

Ukraine, 3%

Turkey, 2%

Bulgaria, 1%

Romania, 2%

Switzerland, 
11%

Russia, 5%

Croatia, 1%

Serbia and 
Montenegro, 
1%

EU FDI flows to Africa up since 2002 

Since  2002  EU  FDI  outflows  towards  Africa  increased  by  146 %, 
rising going from EUR 7 bn in 2002 to EUR 17 bn in 2005. The share 
of  total  extra-EU  FDI  flows  invested  in  Africa  remained  stable  at 
10 % in 2004 and 2005.  

The Republic of South Africa attracted more than half of the EU FDI 
outflows to Africa in 2005 (EUR 9 bn) and was the main recipient of 
EU FDI in the continent during the whole period in question. 

30  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   30

16-07-2007   17:01:25

 
 
 
  
 
 
 
 
 
 
 
 
 
Chapter 1  
 EU direct investment abroad 

Chart 1.4:  

EU FDI flows towards Africa in 2005 

Egypt, 5%

Others, 22%

Morocco, 4%

Nigeria, 16%

Republic of 
South Africa, 
53%

The United Kingdom was the main investor in Africa over the period 
2001-05 (59 % of the EU total in 2005), investing principally in South 
Africa.  

France,  the  second  main  EU  investor  in  Africa  for  the  period  in 
question, invested predominantly in Morocco. The Netherlands is the 
third largest EU investor country in Africa, investing most in Nigeria. 

EU  FDI  stocks  held  in  Africa  have  increased  steadily,  growing  by 
51 % between end-2001 (EUR 60 bn) and end-2004 (EUR 91 bn). 

Chart 1.5: 

EU FDI stocks in Africa 2001-2004, EUR bn 

100
90
80
70
60
50
40
30
20
10
0

(cid:4) 

48

13

50

15

2001

2002

66

19

2003

69

22

2004

North African countries

Other African countries

Foreign direct investment  −  31 

FDI3.pdf   31

16-07-2007   17:01:25

 
 
 
 
 
 
          Chapter 1  
        EU direct investment abroad  

EU FDI in the Offshore Financial Centres: Asia most 
attractive 

EU  outward  FDI  stocks  held  in  Offshore  Financial  centres  (OFCs)7 
increased  by  11 %  between  2003  and  2004  whereas  the  flows 
decreased by 59 % from 2004 to 2005. 

At end-2004, EU outward FDI stocks invested in Offshore Financial 
Centres stood at EUR 372 bn, 18 % of extra-EU FDI stocks. In 2005, 
EU FDI flows to OFCs amounted to EUR 26 bn, with a 15 % share of 
total extra-EU FDI flows. 

Although  detailed  data  at  country  level  are  available  only  in  few 
cases (Hong Kong, the Philippines, Singapore and Liechtenstein), a 
geographical  sub-grouping  of  OFCs  can  be  calculated  from  the 
Eurostat database and is shown in Table 1.2. 

Asian  OFCs  were  the  main  destination  for  EU  FDI  stocks  in  this 
group,  with  EUR  132 bn,  followed  by  those  located  in  Central 
America, with EUR 111 bn.  

As  regards  the  2005  FDI  flows,  Central  American  OFCs  were  the 
main  recipient,  with  EUR  8 bn,  followed  by  Asian  and  European 
OFCs, both receiving EUR 4 bn worth of investments. 

Hong Kong hosted more than half of EU outward FDI to Asian OFCs 
for both stocks and flows (stocks EUR 86 bn and flows EUR 3 bn).  

Table 1.2 

EU outward FDI to Offshore Financial Centres 

(EUR bn)                        

FDI stocks
end-2004

FDI flows
2005

Value bn
2 048
  372

(% )

100%
18%

Value bn
 172
  26

(% )

100%
15%

 33
 111
 132

  43
 86

2%
5%
6%

2%
4%

  4
  8
  4

  1
  3

3%
5%
3%

1%
2%

Extra-EU
Financial Centres
of which:
       European 
       Central American 
       Asian
       of which:
            Singapore
            Hong Kong

7  Offshore  Financial  Centres  is  an  aggregate  used  in  Eurostat  and  ECB  FDI 
data  which  includes  38  countries.  In  Table  1.2,  European  financial  centres 
include  Liechtenstein,  Guernsey,  Jersey,  the  Isle  of  Man,  the  Faroe  Islands, 
Andorra  and  Gibraltar.  Central  American  OFCs  include  Caribbean  Islands 
such as Bermuda, the Bahamas, the Cayman Islands and the Virgin Islands. 
Asian  OFCs  include  Hong  Kong,  Singapore  and  the  Philippines.  See 
Eurostat's website for more information (http://epp.eurostat.ec.europa.eu).    

32  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   32

16-07-2007   17:01:25

 
 
 
 
 
 
 
 
 
 
                                                 
 
Chapter 1  
 EU direct investment abroad 

Main investors among the Member States: the United 
Kingdom, France, Germany and the Netherlands 

Four  Member  States  accounted  for  the  bulk  of  EU  outward  FDI 
stocks at end-2004: the United Kingdom, France, Germany and the 
Netherlands. These four Member States made up 52 % of extra-EU 
outward stocks. 

At  end-2004,  the  United  Kingdom’s  share  of  extra-EU  FDI  stocks 
was  more  than  one  fifth.  Its  share  remained  stable  over  the  period 
2001-04.  

With investment stocks worth EUR 201 bn, the United Kingdom held 
27 % of EU FDI stocks in the United States, 21 % of EU FDI assets 
in Asia, 27 % of EU FDI stocks in Africa and 38 % of EU FDI stocks 
in Australia.  

France was the second main investor, with a 12 % share of EU FDI 
stocks,  followed  by  Germany  with  11 %  and  the  Netherlands  with 
9 %.  France  had  the  highest  share  of  EU  FDI  in  North  Africa, 
whereas  Germany  had  the  highest  share  of  EU  FDI  in  China.  The 
Netherlands had the highest share of EU FDI in Taiwan. 

For  all  four  countries,  the  main  recipient  of  their  extra-EU  FDI  was 
the United States. The Asian continent received  the second largest 
share  of  their  outward  FDI,  except  for  the  Netherlands,  which 
invested more in Switzerland and the EFTA countries. 

Table 1.3 

Geographical distribution of EU FDI assets, four main investors abroad
(At end-2004, EUR mn)

Stocks at End-2004
     Extra EU
    Europe (non-EU)
      EFTA
         Switzerland
      Russia
      Ukraine
      Candidate Countries*
     Africa
         North African countries
         Other African countries
             Republic of South Africa
     America
         North American countries
             Canada
             United States 
         Central American countries
             Mexico
         South American countries
             Brazil
     Asia
         Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             India
             Indonesia
             Japan
             Korea**
             Taiwan
     Oceania and Polar regions
         Australia
         New Zealand
 OECD countries non-EU)
* Bulgaria, Romania, Turkey and Croatia. 
** Republic of South Korea. 
: Missing  or confidential data. 

EU-25
2 048 346
 400 553
 292 151
 247 351
 20 983
 1 682
 31 823
 91 458
 22 016
 69 443
 37 415
1 153 872
 801 329
 74 751
 739 650
 210 169
 38 594
 142 375
 70 768
 315 806
 19 343
 296 464
 21 278
 85 559
 9 713
 6 567
 76 088
 19 423
 6 139
 59 901
 54 078
 5 391
1 312 180

(cid:4) 

United 

Kingdom France Germany Netherlands

Other
 EU

 12 654

 47 869
 20 521
 12 913
 2 308
  132
:
 24 570
 1 998
 22 571
 15 551

 421 888  243 620
 35 364
 29 334
 24 974
 1 726
  25
 3 488
 13 492
 7 078
 6 414
  642
 258 194  149 411
 213 538  136 395
 17 392
 200 857  119 003
 3 741
 1 406
 9 275
 5 882
 37 367
 3 386
 33 981
 2 124
 1 508
  589
  673
 22 020
 1 294
  225
 5 061
 4 656
  310
 272 150  196 742

 31 179
 3 491
 13 477
 5 563
 66 982
 4 249
 62 733
 2 669
 27 182
 2 386
 1 671
 8 267
 1 728
 1 245
 22 961
 20 688
 2 069

 232 847
 27 680
 16 035
 14 813
 3 735
  266
 5 493
 4 604
 1 096
 3 509
 3 184
 158 729
 140 585
 5 796
 134 789
 10 370
 3 520
 7 774
 5 000
 36 002
  840
 35 162
 8 195
 3 117
 1 917
  959
 7 786
 3 861
  661
 5 831
 5 504
  316
 179 998

 8 580

 5 152
  151
:
 5 935
 1 417
 4 517
  641

 176 414  973 577
 43 400  246 240
 33 689  192 572
 30 305  164 346
 8 062
 1 108
:
 42 857
 10 427
 32 432
 17 397
 94 422  493 116
 75 149  235 662
 30 329
 66 570  218 431
 10 398  154 481
 3 678
 26 499
 8 875  102 974
 48 135
 6 188
 25 014  150 441
 7 953
 22 099  142 489
 6 946
 50 727
 3 901
 2 459
 37 179
 8 601
 1 534
 18 388
 15 984
 2 313
 126 400  536 890

 1 344
 3 025
  920
  805
  836
 3 939
 2 474
 7 660
 7 246
  383

 2 915

Foreign direct investment  −  33 

FDI3.pdf   33

16-07-2007   17:01:25

 
 
          Chapter 1  
        EU direct investment abroad  

Extra-EU FDI outflows in terms of GDP: The Netherlands 
recorded the highest value in 2005 

The ratio of extra-EU FDI flows to EU GDP was 1.6 % in 2005, rising 
slightly  from  the  lowest  level  of  1.3 %  in  2003,  but  remaining  well 
below the peak of 3.2 % in 2001.  

The  four  main  EU  investor  countries,  except  the  United  Kingdom, 
increased  their  outward  FDI  to  GDP  ratio  between  2004  and  2005. 
The  United  Kingdom’s  FDI  to  GDP  ratio  fell  from  3.2 %  in  2004  to 
2.4 % in 2005, with the lowest level in 2002 at 0.4 %. 

With the exception of 2004, the Netherlands had the highest ratio of 
outward FDI to GDP over the period 2001-05. In 2005, the ratio was 
3.9 %. 

Generally,  Germany  recorded  the  lowest  ratios  among  the  main 
investor  countries  presented  in  the  graph.  After  a  ratio  of  2.6 %  in 
2001,  it  recorded  disinvestments  in  extra-EU  countries  in  2002  and 
2004 (-0.2 % and -0.1 % of GDP respectively). In 2005, the ratio was 
0.5 %. 

France’s FDI to GDP ratio fell from 2.1 % in 2001 to 1.4 % in 2005, 
with the lowest level in 2004 at 0.4 %. 

Chart 1.6 

EU FDI flows to extra-EU countries as share of investor 
economy's GDP 

%

8

7

6

5

4

3

2

1

0

-1

EU average

Germany

France

Netherlands

United
Kingdom

Others

2001

2002

2003

2004

2005

34  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   34

16-07-2007   17:01:25

 
 
 
 
 
 
 
 
 
Chapter 1  
 EU direct investment abroad 

1.2 Focus on Candidate Countries8

Substantial increase in EU-25 FDI flows to Candidate 
Countries in 2005  

2005  saw  89 %  growth  in  EU  FDI  outflows  to  the  Candidate 
Countries, with values leaping from EUR 5 bn in 2004 to EUR 10 bn 
in 2005. This increase was due to higher investment flows to all the 
Candidate  Countries,  but  the  largest  growth  was  observed  in  the 
flows to Turkey (from EUR 1.1 bn in 2004 to EUR 3.3 bn in 2005). 

Chart 1.7 

EU FDI outward flows to Candidate Countries, EUR bn 

89%*

10

8

6

4

2

0

-39%*

30%*

26%*

2001

2002

2003

2004

2005

Bulgaria

Romania

Croatia

Turkey

* Year on year growth rate. 
** Estimated stock value. 

The  main  destination  of  EU  FDI  flows  among  the  Candidate 
Countries since 2004 was Romania, which received EUR 3.1  bn in 
2004  and  EUR  3.9   bn  in  2005  (57 %  and  39 %  of  the  Candidate 
Countries’ total). In 2005, EU FDI flows to Turkey amounted to EUR 
3.2  bn, whereas Bulgaria received EUR 2 bn and Croatia EUR 1 bn. 

EU  FDI  stocks  rose  steadily  over  the  period  2001-05,  reaching  an 
estimated EUR 42 bn at end-2005 (Chart 1.9). The stocks grew most 
(growth  rate  of  36 %)  between  2002  and  2003,  mainly  due  to  an 
increase in EU assets held in Romania.  

During the period 2001-05, Turkey and Romania were able to attract 
most EU FDI investments among the four countries in question. The 
stock of EU FDI in Turkey at end-2005 stood at EUR 16.6 bn and in 
Romania at EUR 13.1 bn. 

8  The  Candidate  Countries  are  Bulgaria,  Croatia,  Romania  and  Turkey. 
(Bulgaria and Romania joined the EU in 2007). 

(cid:4) 

Foreign direct investment  −  35 

FDI3.pdf   35

16-07-2007   17:01:25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
          Chapter 1  
        EU direct investment abroad  

Chart 1.8 

EU FDI outward stocks in Candidate Countries, EUR bn 

32%**

18%*

36%*

6%*

45

40
35

30
25

20
15

10
5

0

2001

2002

2003

2004

2005

Bulgaria

Romania

Croatia

Turkey

* Year on year growth rate. 
** Estimated stock value. 

Germany was the main investor in the Candidate 
Countries 

Looking  at  the  bilateral  data  available  for  end-2004,  Germany  was 
the main holder of FDI stocks in the Candidate Countries, with 17 % 
of the EU FDI stocks allocated in these countries followed by France 
(11 %), Italy (8 %) and Sweden (5 %). The United Kingdom and the 
Netherlands  were  also  significant 
the  Candidate 
Countries,  but  due  to  data  confidentiality,  the  details  cannot  be 
included in Table 1.4. 

investors 

in 

Of  the  countries  presented  in  Table  1.4,  Turkey  is  the  main 
investment  destination  for  Germany,  Italy  and  Sweden,  whereas 
France  invested  most  in  Romania  and  Turkey;  Hungary  and 
Slovenia invested most in Croatia.  

Table 1.4 

EU FDI assets in Candidate Countries at end – 2004
(EUR mn)

EU
of which:

DE

FR

IT

SE

HU

SI

Other
MS*

 Candidate
 countries

 Bulgaria
 Romania
 Croatia
 Turkey

 31 823
 3 683
 9 155
 5 684
 13 301

 5 493
  253
 1 053
 1 474
 2 713

 3 488
  133
 1 941
  75
 1 339

 2 582
  440
 524
  712
  906

 1 609
  32
 51
  134
 1 392

  811
  218
 202
  360
  31

  703  17 137
 2 602
5 359
 2 256
 6 920

  5
  25
  673
  0

* 'Other MS' is computed as the difference between the estimated EU 
aggregate and the sum of the selected declaring countries. 

36  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   36

16-07-2007   17:01:26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 1  
 EU direct investment abroad 

1.3 FDI income from extra-EU countries 

FDI income 18 % up between 2004 and 2005 

EU  FDI  income  from  extra-EU  FDI  grew  steadily  over  the  period 
2001-05, with values rising from EUR 86 bn to EUR 178 bn.  

With  EUR  82 bn  in  2005,  America  was  the  main  source  of  FDI 
income  to  the  EU  during  the  entire  period.  The  income  flows  it 
provided  averaged  EUR  56 bn  over  the  five-year  period.  Asia  was 
the  second  largest  provider  of  FDI  income  to  the  EU  during  the 
entire period, averaging EUR 25 bn over the five years. 

Chart 1.9 

EU FDI income from extra-EU FDI, EUR bn 

170

140

110

80

50

20

-10

Total

200

150

100

50

0

2001

2002

2003

2004

2005

 Europe (non-EU)
 America
 Oceania and Polar regions

 Africa
 Asia
 Total (right-hand scale)

Table  1.5  shows  an  overall  increase  in  EU  income  from  all  the 
partner  continents,  except  for  Oceania  and  Polar  regions.  The 
largest rise in relative terms is recorded in income from investments 
in Russia, which grew by 44 %. 

With  31 %  of  the  EU  FDI  total,  the  United  States  was  the  main 
country source of EU FDI income, followed by Switzerland (10 %). 

Among  the  Far  East  Asian  countries,  Hong  Kong  was  the  main 
source of EU FDI income, providing EUR 9 bn or 5 % of total EU FDI 
income.  

In 2005, the United Kingdom received 42 % of total EU FDI income 
(EUR  76 bn),  the  Netherlands  received  EUR  21 bn  (12 %)  and 
France  EUR  14 bn  (8 %).  The  respective  shares  of  total  extra-EU 
FDI stocks at end-2004 held by these countries are 21 %, 9 %  and 
12 % (see Table 1.3). 

(cid:4) 

Foreign direct investment  −  37 

FDI3.pdf   37

16-07-2007   17:01:26

 
 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 1  
        EU direct investment abroad  

Table 1.5 

Geographical distribution of EU income from outward EU FDI 

Income
% Shares

Extra-EU
    Europe (non-EU)

A

      EFTA
              Switzerland
      Russia
      Candiate Countries*
     Africa
         North African countries
         Other African countries
             Republic of South Africa
     America
         North American countries
             Canada
             US
         Central American countries
             Mexico
         South American countries
             Brazil
     Asia
       Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             Japan
             Korea**
             Taiwan
             Singapore
     Oceania and Polar regions
         Australia
         New Zealand
 Extra-EU not allocated
 OECD countries (non-EU)

(EUR bn and %)                                                  

2001 2002 2003

2004

2005

86

  16
12
  9
1
  1
6
  1
4
  2
40
  31
2
  28
4
  0
5
  2
17
  2
16
  1
6
  1
1
  0
3
  3
2
  1
4

  49

86

  6
16
  13
1
  1
9
  3
6
  3
44
  36
3
  33
4
  2
3
  3
21
  2
18
  1
4
  2
1
  1
3
 5
4
  1
2

  63

2003
100%

20%
14%
11%
2%
2%
7%
2%
6%
3%
47%
34%
3%
31%
9%
2%
4%
3%
19%
2%
16%
2%
4%
3%
1%
1%
3%
4%
3%
1%
3%

58%

104

  20
15
  12
2
  2
7
  2
6
  3
48
  35
3
  32
9
  2
5
  3
20
  2
17
  2
4
  3
1
  1
3
 5
4
  1
3

  60

2004
100%

21%
12%
10%
2%
2%
7%
1%
6%
4%
45%
32%
3%
30%
7%
2%
5%
3%
20%
2%
19%
1%
5%
2%
2%
1%
4%
5%
5%
0%
2%

178

  35
23
  17
4
  3
15
  3
12
  7
82
  60
5
  55
11
  3
11
  6
36
  4
32
  3
9
  4
2
  1
7
  7
6
  1
4

57%   100

2005
100%

20%
13%
10%
%
2
1%
%
9
2%
7%
4%
46%
34%
%
3
31%
6
%
2%
6%
4%
20%
2%
18%
2%
5
%
2%
1
%
0%
4
%
4
%
3
%
1%
2
%

56%

150

  32
19
  14
3
  2
11
  2
9
  5
67
  49
4
  45
11
  3
7
  4
31
  3
28
  2
8
  3
2
  1
6
 8
7
  1
3

  85

* Bulgaria, Romania, Turkey and Croatia. 
** Republic of South Korea. 

EUR 29 bn of FDI income came from the Offshore Financial Centres 
(OFCs) 9 in 2005 (Table 1.6), representing 16 % of all EU investment 
income  from  extra  EU  countries.  While  FDI  EU  income  from  the 
Asian  centres  increased,  the  contribution  of  Central  American 
centres  remained  stable  over  the  period  2004-05.  FDI  income  from 
the  European  financial  centres  halved,  amounting  to  EUR  3 bn  in 
2005. 

9  Offshore  Financial  Centres  is  an  aggregate  used  in  Eurostat  and  ECB  FDI 
data  which  includes  38  countries.  In  Table  1.5,  European  financial  centres 
include  Liechtenstein,  Guernsey,  Jersey,  the  Isle  of  Man,  the  Faroe  Islands, 
Andorra  and  Gibraltar.  Central  American  OFCs  include  Caribbean  Islands 
such as Bermuda, the Bahamas, the Cayman Islands and the Virgin Islands. 
Asian  OFCs  include  Hong  Kong,  Singapore  and  the  Philippines.  See 
Eurostat's website for more information (http://epp.eurostat.ec.europa.eu).   

38  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   38

16-07-2007   17:01:26

 
 
 
 
                                                 
Chapter 1  
 EU direct investment abroad 

Table 1.6  

EU FDI income from Offshore Financial Centres 

Extra-EU

Financial Centres

of which:

       European 

       Central American 

       Asian
       of which:

         Singapore
            Hong Kong

2004

2005

Value bn
  150
29

(% )
100%
19%

Value bn
  178
29

(% )
100%
16%

6
  7
14

6
  8

4%
5%
9%

4%
5%

3
  7
16

7
  9

2%
4%
9%

4%
%  
5

Stocks, income and yield: 8.7 % yield on EU FDI abroad 
in 2005 

The ratio 10 of income in a given period to stocks at the beginning of 
that period appears as an indicator of FDI profitability in Chart 1.10. 
Over  the  period  2002-05,  extra-EU  outward  FDI  yielded  an  annual 
average of 6.5 %, with the rate of return on extra-EU FDI rising from 
4.3 % in 2002 to 8.7 % in 2005. 

Africa had the highest rate of return over the period 2002-05 except 
in  2004,  when  Oceania  and  Polar  regions  yielded  the  top  rate  of 
return.  In  2005,  the  yield  from  EU  investments  in  Africa  reached  a 
record high at 17 %. 

America,  where  most  of  EU  FDI  stocks  are  held  (36 %  in  2005), 
yielded  rather  low  rates  of  return  on  EU  investments,  ranging  from 
3.4 % in 2002 to 7.1 % in 2005. 

Chart 1.10 

Extra-EU FDI rate of return 

%

17
15
13
11
9
7
5
3
1
-1
-3

2002

2003

2004

 Europe (non-EU)

 Africa

 Oceania

 Others

 America

 Extra EU-25

2005

 Asia

10 Rate of return in t  = (Income paid in t) / (Stocks at the end of the period t-1).

(cid:4) 

Foreign direct investment  −  39 

FDI3.pdf   39

16-07-2007   17:01:26

 
 
 
 
 
 
                                                 
FDI3.pdf   40

16-07-2007   17:01:26

Chapter 2:  
Direct investment in the EU 

FDI3.pdf   41

16-07-2007   17:01:26

 
FDI3.pdf   42

16-07-2007   17:01:26

      Chapter 2  
Direct investment in the EU 

EU  inward  FDI  flows  from  outside  the  EU  experienced  an 
upturn  in  2005,  reversing  the  steady  decline  registered 
during the period 2001-04 

2.1  FDI  from  Extra-EU  countries:  Trend  and  main 
investors 

EU  FDI  inward  flows  increased  by  77 %  from  2004  to 
2005 

EU FDI inward flows shrank by 24 % between 2001 and 2004. After 
the  sharp  decline  in  2004,  when  the  lowest  level  of  the  period  was 
recorded (-57 %), EU FDI inward flows increased by 77 % between 
2004 and 2005, rising from EUR 53 bn to EUR 94 bn. 

The European continent (non-EU countries) was the main investor in 
the EU, with a 43 % share. It increased considerably the volume of 
investments, from EUR 28 bn in 2004 to EUR 41 bn in 2005. 

The American continent lost its rank as the main investor in the EU 
in  2004,  when  its  investments  dropped  from  EUR  72 bn  in  2003  to 
EUR 10 bn (from 58 % to 18 %). In 2005, investments from America 
increased  significantly,  reaching  EUR  33 bn,  representing  36 %  of 
extra-EU inward FDI flows.  

Asia was the third largest investor, with EUR 9 bn and a 9 % share. 
The amount of its investments fell by EUR 1 bn compared to 2004, 
but the share dropped from 18 % to 9 %. 

With  EUR  6 bn  and  a  6 %  share,  Oceania  and  the  Polar  Regions 
was the fourth investor in the EU, followed by Africa with EUR 1 bn 
and a share of 1 %. 

Chart 2.1 

Extra-EU inward FDI flows, by main continents, EUR bn 

100

80

60

40

20

0

(cid:4) 

Total

150
130
110
90
70
50
30
10
-10

2001

2002

2003

2004

2005

Europe (non-EU)
America
Oceania and Polar regions

Africa
Asia
Total (right-hand scale)

Foreign direct investment  −  43 

FDI3.pdf   43

16-07-2007   17:01:26

 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

The  USA  made  18 %  of  total  EU  inward  investment  in 
2005 

The  United  States  was  the  main  investor  in  the  EU,  with  an  18 % 
share of total extra-EU inflows. The share was the same as in 2004 
although there was a considerable rise in absolute terms, from EUR 
9 bn to EUR 17 bn. 

The  second  main  investor  was  Switzerland,  with  EUR  16 bn, 
representing 17 % of total EU FDI inflows. The share decreased by 
12 percentage points compared to 2004, even if the value remained 
stable at EUR 16 bn. 

Canada  recorded  the  strongest  increase  over  the  period  2004-05, 
with  values  jumping  from  a  disinvestment  of  EUR  -4 bn  to  an 
investment of EUR 8 bn. It holds the third place in 2005 with an 8 % 
share. 

Japan's investments in the EU went down from EUR 8 bn in 2004 to 
EUR  6 bn  in  2005.  Its  share  of  total  extra-EU  FDI  inflows  dropped 
from 14 % to 7 %. 

Investments  by  Australia  and  Brazil  each  represented  in  2005  a 
share  of  6 %  of  total  FDI  inflows.  Both  countries  registered  an 
increase between 2004 and 2005, rising respectively from EUR 4 bn 
to EUR 6 bn and from EUR 4 bn to EUR 5 bn.  

Table 2.1 

Geographical distribution of EU FDI liabilities and most recent inward flows,

Stocks at end 
Flows

(EUR bn and %)                                                               

2001

2002

2003

2004

2005

2004

2005

  265
  217
  186
  5
  2
  10
  2
  7
  4

  213
  187
  157
  4
  2
  9
  2
  8
  5

 Extra-EU
     Europe (non-EU)
         EFTA
             Switzerland
         Russia
         Candidate Countries*
     Africa
         North African countries
         Other African countries
             Republic of South Africa
     America
         North American countries
             Canada
            USA
         Central American countries
             Mexico
         South American countries
             Brazil
     Asia
         Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             India
             Indonesia
             Japan
                Korea**
             Taiwan
             Singapore
     Oceania and Polar regions
         Australia
         New Zealand
 Extra-EU not allocated
 OECD countries (non-EU)
* Bulgaria, Romania, Turkey and Croatia. 
** Republic of South Korea. 
n.a. : Data not available yet. 

 1 296 1 265 1 485 1 581
  316
  256
  221
  6
  3
  12
  3
  9
  4
  876  1 032  1 045
  818
  808
  741
  62
  66
  74
  694
  687
  660
  216
  215
  130
  8
  7
  3
  12
  9
  5
  3
  2
  2
  148
  134
  114
  17
  22
  17
  131
  112
  96
  2
  0
  1
  13
  8
  12
  1
  1
  1
  0
  0
  0
  82
  75
  63
  5
  4
  2
  1
  1
  1
  21
  17
  15
  28
  23
  17
  27
  22
  15
  1
  1
  1
  33
  20
  37
 1 040  1 005  1 076  1 133

  207
  171
  145
  4
  3
  9
  2
  7
  4
  927
  786
  81
  705
  137
  4
  4
  2
  109
  16
  93
  1
  11
  1
  0
  60
  2
  2
  15
  22
  21
  1
  22

53 100%  1 745
n.a.
n.a.
237
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
75
769
n.a.
n.a.
n.a.
7
n.a.
n.a.
n.a.
1
17
3
n.a.
90
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
180
n.a.

54%
  28
31%
  16
29%
  16
0%
  0
1%
  0
2%
  1
0%
  0
1%
  1
0%
  0
18%
  10
10%
  5
-7%
-  4
18%
  9
-2%
-  1
2%
  1
9%
  5
8%
  4
  10
18%
-  6 -12%
30%
  16
0%
  0
9%
  5
0%
  0
0%
  0
14%
  8
2%
  1
0%
  0
1%
  0
7%
  4
7%
  4
0%
  0
1%
  1
67%
  36

94 100%
43%
41
21%
20
17%
16
4%
4
1%
1
1%
1
0%
0
1%
0
0%
0
36%
33
27%
25
8%
8
18%
17
2%
2
1%
1
7%
6
6%
5
9%
9
2%
2
7%
7
0%
0
1%
1
0%
0
0%
0
7%
6
1%
1
0%
0
-2%
-2
6%
6
6%
6
0%
0
5%
5
63%
59

44  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   44

16-07-2007   17:01:27

 
 
 
 
      Chapter 2  
Direct investment in the EU 

USA  represents  half  of  the  investments  in  EU  from  the 
American continent 

With  a  share  of  75 %  (EUR  25 bn)  in  2005,  the  North  American 
countries remained the main investors in the total inward flows from 
America,  followed  by  South  American  countries  with  19 %  (EUR 
6 bn) and Central American countries with 6 % (EUR 2 bn). 

51 % of the investments from America, corresponding to 68 % of the 
investments  from  Northern  American  countries,  originated  from  the 
United States. 

Chart 2.2 

2005 EU FDI inflows from America 

South American 
countries
19%

Central 
American 
countries
6%

North American 
countries
75%

Canada
24%

USA
51%

European  (non-EU)  countries:  Switzerland  remained  the 
main investor, huge increase of Russia 

Switzerland  was  the  main  investor  in  the  EU  among  the  European 
non-EU countries in 2005, representing 38 % of total EU FDI inflows 
from those countries. 

Russia emerged as the second investor in the EU with a 10 % share 
of  total  inward  flows  from  Europe  (non-EU)  and  an  unprecedented 
share of 4 % of total extra-EU FDI inflows (EUR 4 bn). 

Chart 2.3 

EU FDI inflows from Europe (non-EU), EUR bn 

Total

50
45
40
35
30
25
20
15
10
5
0

2001

2002

2003

2004

2005

Switzerland

Russia

Total (right-hand scale)

Foreign direct investment  −  45 

25

20

15

10

5

0

(cid:4) 

FDI3.pdf   45

16-07-2007   17:01:27

 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

EU FDI inflows from Asia in 2005 70 % down on 2001. 

Asian investments in the EU dropped over the period under review, 
from EUR 26 bn in 2001 to EUR 9 bn in 2005. 

The  huge  decrease  was  mainly  due  to  the  declining  trend  in 
investments  by  Hong  Kong,  Japan  and  Singapore,  the  main 
investors in the EU from the Asian continent in 2001. EU FDI inflows 
from  these  countries  fell  between  2001  and  2005  respectively  from 
EUR 9 bn to EUR 2 bn, from EUR 9 bn to EUR 6 bn, and from EUR 
6 bn to a disinvestment of EUR -2 bn. 

Despite  the  decline  in  its  investments,  Japan  remained  the  main 
investor in the EU from Asia, with a share of 71 % in 2005. 

Even  with  small  investments  in  absolute  values,  China  stepped  up 
its  investments  between  2004  and  2005  (from  a  disinvestment  of 
EUR -0.1 bn to  a positive investment of EUR 0.4 bn), reaching 5 % 
of EU FDI inflows from Asia. 

Chart 2.4 

EU FDI inflows from Asia, EUR bn 

10

8

6

4

2

0

-2

2001

2002

2003

2004

2005

Total

30

25

20

15

10

5

0

China
Japan
Singapore

Hong Kong
Korea, Republic of (South Korea)
Total (right-hand scale)

46  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   46

16-07-2007   17:01:27

 
 
 
 
 
 
      Chapter 2  
Direct investment in the EU 

Oceania  and  Polar 
regions:  significant 
investments in the EU between 2003 and 2005 

rise 

in 

Australia experienced an increase in its investments in the EU since 
2003, reaching EUR 6 bn in 2005. 

New  Zealand  recorded  a  reverse  trend,  falling  from  EUR  0.6 bn  in 
2001 to EUR 0.1 bn in 2005. 

Chart 2.5 

EU FDI inflows from Oceania and Polar regions, EUR bn 

5.5

4.5

3.5

2.5

1.5

0.5

-0.5

2001

2002

2003

2004

2005

Total

6

5

4

3

2

1

0

Australia

New Zealand

Total (right-hand scale)

Investments  from  Africa  down  during  the  period  2001-
2005 

EU  FDI  inflows  from  Africa  underwent  a  significant  decline,  falling 
from EUR 4 bn in 2001 to a relatively stable amount below EUR 1 bn 
in 2003, 2004 and 2005. 

The  main  investor  in  2005  was  Egypt,  with  a  share  of  17 %  of  the 
total African continent and 76 % of the North African countries. 

South Africa dropped from the role of the biggest investor in the EU 
among the African countries in 2001 (EUR 3 bn) to a disinvestment 
in 2005. 

Chart 2.6 

EU FDI inflows from Africa, EUR bn 

Total

4.5

3.5

2.5

1.5

0.5

-0.5

2001

2002

2003

2004

2005

North African countries

Other African countries

Total (right-hand scale)

Foreign direct investment  −  47 

3.5
3
2.5
2
1.5
1
0.5
0

(cid:4) 

FDI3.pdf   47

16-07-2007   17:01:27

 
 
 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

EU inward FDI from Offshore Financial Centres 

At  EUR  18 bn,  the  Offshore  Financial  Centres  (OFCs) 11  accounted 
for  19 %  of  total  extra-EU  FDI  inflows  in  2005  and  21 %  of  inward 
stocks at end-2004. 

Investments  from  OFCs  grew  by  5 %  in  2005  after  the  drop  from 
EUR 33 bn in 2003 to EUR 17 bn in 2004. 

European OFCs contributed EUR 16 bn to the flows invested in the 
EU  and  Central  American  OFCs  EUR  1 bn,  whereas  Asian  OFCs 
registered a disinvestment of EUR -1 bn. 

2004  FDI  inward  stocks  showed  that  OFCs  from  Central  America 
were  the  main  source  of  FDI  among  the  OFCs,  with  a  60 %  share 
(13 % of total extra-EU), followed by European OFCs with 13 % (3 % 
of total extra-EU) and Asian OFCs with 10 % (2 % of total extra-EU).  

Table 2.2 

EU inward FDI from Offshore Financial Centres 

(EUR bn)                        

FDI stocks
end-2004

Value
 1 581
  337

(% )
100%
21%

FDI flows
2005

Value
94
18

(% )
100%
19%

  44
  202
  35

  21
  13

3%
13%
2%

1%
1%

16
1
-1

-2
1

17%
1%
-1%

-2%
1%

 Extra-EU
 Financial Centres

of which:
       European 
       Central American 
       Asian
       of which:
            Singapore
            Hong Kong

11 Offshore Financial Centres is an aggregate used in Eurostat and ECB FDI 
data  which  includes  38  countries.  In  Table  2.2,  European  financial  centres 
include  Liechtenstein,  Guernsey,  Jersey,  the  Isle  of  Man,  the  Faroe  Islands, 
Andorra  and  Gibraltar.  Central  American  OFCs  include  Caribbean  Islands 
such as Bermuda, the Bahamas, the Cayman Islands and the Virgin Islands. 
Asian  OFCs  include  Hong  Kong,  Singapore  and  the  Philippines.  See 
Eurostat's website for more information (http://epp.eurostat.ec.europa.eu).    

48  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   48

16-07-2007   17:01:27

 
 
 
 
 
 
 
 
                                                 
      Chapter 2  
Direct investment in the EU 

EU FDI inward stocks: top 25 investor countries 

Chart  2.7  illustrates  the  recent  evolution  of  stocks  held  by  the  25 
largest  partners  ranked  according  to  the  growth  rate  between  2001 
and 2004. 

Iceland recorded the highest rate of growth between 2001 and 2004 
even  if  the  increase  in  absolute  terms  was  small,  rising  from  EUR 
0.3 bn in 2001 to EUR 2.8 bn in 2004. 

Argentina  had  the  next  highest  growth  rate  (783 %),  followed  by 
China and Korea. 

The investment stocks held in the EU by the United States fell from 
EUR 705 bn in 2001 to EUR 694 bn in 2004, leading to a growth rate 
of -1 %. 

Chart 2.7 

Growth rate of inward FDI stocks held in the EU for top 25 
investors 

979%

783%

Inward FDI stocks 
at end-2004 
(EUR bn)

Iceland (2.8 bn)

Argentina (2.1 bn)

China (1.7 bn)

Korea* (4.8 bn)

Other Near and Middle East (2.2 bn)

Mexico (8 bn)

Chile (1.7 bn)

Switzerland (221 bn)

Malaysia (1.6 bn)

Brazil (3.1 bn)

Norway (28 bn)

Singapore (20.7 bn)

Russia (5.6 bn)

Japan (81.9 bn)

Nigeria (2.4 bn)

Israel (4 bn)

Australia (27 bn)

Hong Kong (13 bn)

Republic of South Africa (4.3 bn)

Turkey (2.6 bn)

USA (694 bn)

Iran (1.9 bn)

Gulf Arabian Countries (8.9 bn)

Liechtenstein (4.9 bn)

Canada (62 bn)

-30% 0% 30% 60% 90% 120% 150% 180%

2001-2004 Growth rate

* Republic of South Korea 

(cid:4) 

Foreign direct investment  −  49 

FDI3.pdf   49

16-07-2007   17:01:27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

Major hosts of inward FDI in the EU: the United Kingdom 
took 18 % of stocks in 2004 

At  end-2004,  the  United  Kingdom  was  the  main  host  of  direct 
investments  in  the  EU-25,  holding  18 %  of  the  EU-25  total.  The 
share remained almost stable compared to 2003. 

Germany  was  the  second  main  destination  with  10 %  of  the  EU-25 
total, followed by the Netherlands (9 %) and France (8 %). 
For  all  these  four  countries,  the  largest  partners  at  end-2004  were 
the United States, Switzerland and Japan. 

The  amount  of  EU  FDI  stocks  held  by  the  United  States  in  these 
countries  totalled  EUR  380 bn  at  end-2004.  The  United  States'  FDI 
stocks increased in Germany (8 %) and France (5 %) and decreased 
in the Netherlands (-18 %) and the United Kingdom (-8 %) between 
2003 and 2004.  

The main host of FDI from Switzerland at end-2004 was France, with 
an  increase  of  50 %  between  2003  and  2004.  Switzerland's  FDI 
stocks  increased  also  in  the  United  Kingdom  (12 %)  and  the 
Netherlands (11 %) but decreased in Germany (-6 %). 

61 % of the EU FDI stocks held by Japan in 2004 were hosted in the 
four  countries  in  question.  Its  FDI  stocks  remained  almost  stable in 
the United Kingdom, Germany and the Netherlands and increased in 
France by 15 % from 2003 to 2004. 
. 
Table 2.3 

Geographical distribution of EU FDI liabilities, four main recipients
(at end-2004, EUR mn)

United 

Kingdom Germany

Stocks at end-2004

  Extra-EU
     Europe (non EU)
         EFTA
            Switzerland
            Norway
         Russia
         Candidate countries*
     Africa
         North African countries
         Other African countries
             Republic of South Africa
     America
         North American countries
             Canada
             USA
         Central American countries
             Mexico
         South American countries
             Brazil
     Asia
         Other Asian countries
             China
             Hong Kong
             Japan
             Singapore
     Oceania and Polar regions
         Australia
         New Zealand

EU-25
1 580 532
 315 626
 256 441
 220 567
 28 109
 5 558
 3 322
 11 533
 2 803
 8 729
 4 281
1 045 235
 817 615
 62 187
 694 338
 215 558
 7 971
 12 060
 3 109
 147 948
 130 887
 1 692
 13 148
 81 852
 20 678
 27 868
 27 164
  501

Netherlands
 136 247
 28 517
 19 542
 17 198
 2 199
  114
:
  285
  77
  209
  40
 89 214
 63 061
 1 108
 61 956
 25 999
  17
  153
  45
 17 456
 14 949
  65
  298
 12 788
  390
  774
  753
  15

* Bulgaria, Romania, Turkey and Croatia. 
n.a. : Data not available yet. 

 286 641
 28 184
 22 342
 20 828
  343
:
:
  752
:
:
  420
 198 695
:
:
 173 135
 8 297
  21
:
:
 35 175
 31 253
  169
:
 17 446
 1 312
 23 811
 23 588
  217

 1 814
  420
  204
 2 306
 1 045
 1 261
  58

France Other EU
 151 457  125 866  880 321
 39 599  180 907
 38 358  143 121
 36 351  115 733
 21 732
:
:
 6 967
:
:
 2 602
 66 937  594 357
:
 62 599
:
 4 943
 57 655  314 022
 3 655  172 655
 7 676
:
:
 65 013
 59 295
 1 148
:
 31 552
 18 334
 2 155
 1 888
  176

 38 419
 33 078
 30 457
 2 021
  918
:
 1 223
:
:
 1 161
 96 032
 90 884
 3 314
 87 570
 4 952
  60
  196
  101
 15 509
 13 879
  163
  80
 10 442
  164
  275
  275
  0

  197
  683
  267
 14 795
 11 511
  147
  661
 9 624
  478
  853
  660
  93

50  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   50

16-07-2007   17:01:27

 
 
      Chapter 2  
Direct investment in the EU 

Belgium, Luxembourg and the United Kingdom attracted 
most of inward flows  

Belgium  and  Luxembourg  together  received  28 %  of  cumulated 
investment flows over the 2001-05 period. 

Chart 2.8 

Share in EU FDI inward flows from extra-EU, 2001-2005 

Others, 24%

Belgium and 
Luxembourg, 
28%

Portugal, 2%

Italy, 2%

Germany, 6%

Netherlands, 
6%

United 
Kingdom, 17%

Spain, 6%

France, 9%

The  United  Kingdom  received  17 %  of  2001-05  FDI  cumulated 
inflows  from  outside  the  EU,  followed  by  France  (9 %)  and  Spain, 
Germany and the Netherlands with 6 %.  

In 2005, the highest share of EU-25 FDI inward flows was received 
by  the  United  Kingdom  with  53 %,  followed  by  Luxembourg  (25 %) 
and France (15 %). 

(cid:4) 

Foreign direct investment  −  51 

FDI3.pdf   51

16-07-2007   17:01:28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

2.2 Focus on Candidate Countries12

FDI stocks in the Candidate Countries 64 % up between 
2004 and 2005 

The  total  FDI  stocks  held  by  EU  and  extra-EU  investors  in  the 
Candidate  Countries  rose  from  EUR  66 bn  at  end-2004  to  EUR 
108 bn at end-2005, with all four countries experiencing increases. 

Turkey doubled its inward stocks for both EU-25 (from EUR 21 bn at 
end-2004  to  EUR  40 bn  at  end-2005)  and  extra-EU-25  countries 
(from EUR 7 bn at end-2004 to EUR 15 bn at end-2005). 

Investments in Croatia and Romania increased, especially from EU-
25 countries, rising by 58 % and 35 % respectively. Extra-EU-25 FDI 
inward stocks increased by 31 % in Croatia and by 8 % in Romania. 

Bulgaria  recorded  a  remarkable  increase  in  extra-EU-25  inward 
stocks  (200 %)  and  a  decline  in  stocks  held  by  EU-25  countries  
(-12 %). 

Chart 2.9. 

Candidate Countries' inward FDI stocks from EU-25 and 
extra-EU-25 in 2004 and 2005, EUR bn 

60
50
40
30
20
10
0

2004 2005 2004 2005 2004

2005 2004 2005

Bulgaria

Romania

Croatia

Turkey

EU-25

EXTRA-EU-25

12  The  Candidate  Countries  are  Bulgaria,  Croatia,  Romania  and  Turkey. 
(Bulgaria and Romania joined the EU in 2007). 

52  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   52

16-07-2007   17:01:28

 
 
 
 
 
 
 
 
 
 
                                                 
      Chapter 2  
Direct investment in the EU 

Table 2.4 presents details on FDI inward stocks held by the EU-25 in 
the  Candidate  Countries  at  end-2005,  which  amounted  to  EUR 
77 bn. 

the  25  Member  States, 

the 
Among 
Netherlands, with a 23 % share (EUR 17 bn), followed by Germany 
with  EUR  10 bn.  Austria  was  in  third  position,  closely  followed  by 
France. 

investor  was 

the  main 

Table 2.4 

Candidate Countries'
inward FDI stocks from EU-25 

(EUR mn, end-2005)                         
 76 832

EU-25
of which:
         Netherlands
         Germany
         Austria
         France
         Italy

 17 479
 10 366
 8 959
 8 594
 6 135

Table  2.5  gives  details  of  investments  coming  from  extra-EU-25 
countries  into  the  Candidate  Countries,  which  amounted  to  EUR 
31 bn in total. 

Data on FDI inward stocks at the end of 2005 show that the United 
States was the main investor, with EUR 5.5 bn of stocks, followed by 
Switzerland  (EUR  4 bn)  and  Gulf  Arabian  countries  (EUR  3.6 bn). 
These  three  countries  held  42 %  of  the  extra-EU-25  FDI  inward 
stocks hosted in the Candidate Countries. 

Table 2.5 

Candidate Countries'
inward FDI stocks from Extra-EU-25 

(EUR mn, end-2005)                         

Extra-EU-25
of which:
         United States of America
         Switzerland
         Gulf Arabian Countries
         Canada
         Russia

 30 889

 5 509
 3 991
 3 611
  880
  836

(cid:4) 

Foreign direct investment  −  53 

FDI3.pdf   53

16-07-2007   17:01:28

 
 
 
 
 
 
 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

FDI flows to Candidate Countries increased from EUR 11 bn in 2004 
to  EUR  17 bn  in  2005.  With  EUR  4 bn,  Turkey  was  the  most 
attractive  destination  for  extra-EU  FDI  flows  among  the  Candidate 
Countries. Croatia (15 %) and Bulgaria (8 %) accounted for less than 
EUR  1 bn.  Romania  registered  in  2005  a  slight  disinvestment  from 
extra-EU-25  countries,  but  received  most  of  the  EU-25  FDI  flows 
(EUR 5 bn) to the Candidate Countries. 

Table 2.6 

FDI flows to Candidate Countries in 2005 – 
(EUR mn)
EU-25

extra-EU-25

Total

Bulgaria
Romania
Croatia
Turkey

 11 516

 1 896
 5 320
  619
 3 681

 5 297

  430
-  108
  776
 4 199

54  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   54

16-07-2007   17:01:28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Chapter 2  
Direct investment in the EU 

2.3 Income paid on inward EU FDI  

Income paid on inward FDI 26 % up in 2005 

Income  paid  on  inward  EU  FDI  reached  EUR  110 bn  in  2005, 
increasing 26 % between 2004 and 2005. At the same time, the FDI 
stocks  held  by  extra-EU  countries  increased  by  10 %  from  EUR 
1 581 bn to EUR 1 745 bn (Table 2.1). 

At EUR 64 bn, EU FDI income accruing to the United States in 2005 
was  28 %  higher  than  in  2004  and  accounted  for  59 %  of  total  FDI 
income paid to extra-EU investor countries. 

Switzerland, with EUR 16 bn, received 15 % of the total inward FDI 
income and was the second main recipient country, while Japan was 
third (EUR 3 bn and 3 %).  

Table 2.7 

Geographical distribution of EU income paid on inward FDI

Income
% shares

Extra-EU

(EUR bn and %)                                                       

2001 2002 2003

2004

2005

83

68

2003
60 100%

2004

2005
87 100% 110 100%

   Europe (non-EU)
         EFTA
             Switzerland
         Russia
         Candidate Countries*
     Africa
         North African countries
         Other African countries
             Republic of South Africa
     America
         North American countries
             Canada
             USA
         Central American countries
             Mexico
         South American countries
             Brazil
     Asia
       Near and Middle East countries
       Other Asian countries
             China
             Hong Kong
             India
             Indonesia
             Japan
             Korea**
             Taiwan
             Singapore
     Oceania and Polar regions
         Australia
         New Zealand
 Extra-EU not allocated
 OECD countries (non-EU)

23
20
19
0
0
2
1
1
1
39
34
1
33
3
0
1
1
13
0
12
0
8
0
0
2
0
0
1
0
0
0
6
56

13
18
16
0
0
3
1
2
1
40
35
2
33
3
0
1
0
10
1
9
0
2
0
0
4
0
1
1
1
1
0
1
57

9
15
14
1
0
1
0
0
0
46
39
2
37
6
0
1
0
2
1
2
0
0
0
0
1
0
0
0
1
1
0
0
57

16%
26%
23%
1%
2%
1%
0%
1%
0%
77%
65%
4%
62%
10%
1%
1%
1%
4%
1%
3%
0%
0%
0%
0%
2%
-1%
0%
1%
2%
2%
0%
1%
95%

2

1
0
0
0
0
0

19 22% 24
15 18% 18
14 16% 16
2
1%
0
2%
0
0%
0
0%
0
0%
0%
0
64 74% 79
52 60% 66
2%
2
50 58% 64
11 12% 11
0
0%
2
1%
2
1%
4
3%
1
1%
3
2%
0
0%
-1
-1%
0
0%
0
0%
3
3%
0
0%
0
0%
0
0%
1
1%
1
1%
0%
0
1
0%
71 82% 89

0
1
1
3
1
2
0
-1
0
0
3
0
0
0
1
1
0
0

22%
17%
15%
%
2
1%
%
0
0%
%
0
0%
73%
61%
%
2
59%
10%
0%
%
2
2%
3%
1%
2%
0%
-1%
0%
%
0
3%
0%
0%
%
0
1%
%
1
0%
%
1
81%

* Bulgaria, Romania, Turkey and Croatia. 
** Republic of South Korea. 

(cid:4) 

Foreign direct investment  −  55 

FDI3.pdf   55

16-07-2007   17:01:28

 
 
 
 
 
 
 
          Chapter 2  
          Direct investment in the EU  

The  Offshore  Financial  Centres  (OFCs) 13  received  EUR  14 bn  FDI 
income in 2005 from the EU, which represented 13 % of income on 
EU FDI paid to extra-EU countries.  

The  income  directed  to  OFCs  remained  quite  stable  in  absolute 
terms between 2004 and 2005, but decreased in terms of the share 
of the total FDI income paid abroad. 

Asian OFCs  recorded a fall in their EU FDI income, owing to Hong 
Kong. 

Table 2.8 

EU FDI income to Offshore Financial Centres

(EUR bn)                        

Extra-EU

Financial Centres

of which:
       European 
       Central American 
       Asian

       of which:
            Singapore
            Hong Kong

2004

Value

87
13

2
11
-1

0
-1

(% )
100%
15%

3%
12%
-1%

0%
-1%

2005

Value

110
14

3
11
-1

0
-1

(% )
100%
13%

2
%
10%
-1%

%
0
-1%

13 Offshore Financial Centres is an aggregate used in Eurostat and ECB FDI 
data  which  includes  38  countries.  In  Table  2.8,  European  financial  centres 
include  Liechtenstein,  Guernsey,  Jersey,  the  Isle  of  Man,  the  Faroe  Islands, 
Andorra  and  Gibraltar.  Central  American  OFCs  include  Caribbean  Islands 
such as Bermuda, the Bahamas, the Cayman Islands and the Virgin Islands. 
Asian  OFCs  include  Hong  Kong,  Singapore  and  the  Philippines.  See 
Eurostat's website for more information (http://epp.eurostat.ec.europa.eu). 

56  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   56

16-07-2007   17:01:28

 
 
 
 
 
 
 
                                                 
      Chapter 2  
Direct investment in the EU 

Stocks, income and yield: 6.9 % return on EU inward FDI 
in 2005 

The ratio 14 of income in a given period to stocks at the beginning of 
that period is used as an indicator of FDI profitability in Chart 2.10. In 
2005,  the  rate  of  return  on  FDI  capital  invested  by  extra-EU 
countries rose to 6.9 %. 

The geographical breakdown shows that Europe (non-EU), America 
and  Asia  registered  an  increase  in  their  rate  of  return  during  the 
period 2003-05. 

Oceania  received  a  stable  rate  of  return  in  2004  and  2005  after  a 
considerable decrease between 2003 and 2004, while Africa's yield 
picked  up  again  in  2005  after  the  huge  drop  in  2003  (from  38 %  to 
6 %). 

Chart 2.10 

Rate of return on FDI in the EU 

38

%

15
13
11
9
7
5
3
1
-1

2002

2003

2004

2005

 Europe (non-EU)
 America
 Oceania and Polar regions

 Africa
 Asia
 Extra EU-25

14 Rate of return in t  = (Income paid in t) / (Stocks at the end of the period t-1).  

(cid:4) 

Foreign direct investment  −  57 

FDI3.pdf   57

16-07-2007   17:01:28

 
 
 
 
 
 
 
                                                 
 
 
FDI3.pdf   58

16-07-2007   17:01:28

Chapter 3:  
The role of emerging markets 

FDI3.pdf   59

16-07-2007   17:01:29

 
 
 
 
 
FDI3.pdf   60

16-07-2007   17:01:29

Chapter 3   
The role of emerging market   

EU FDI in emerging markets: stable flows in 2005 

Data on the activity of European enterprises in emerging markets 
are monitored very closely by policy-makers and analysts. Despite 
the  slump  in  investment  activity  that  had  been  recorded  in  those 
markets  in  previous  years,  EU  FDI  outflows  to  emerging  markets 
stabilised  over  the  last  two  years  of  the  period  under  review, 
reaching EUR 62 bn in 2005. 

In  2001-03,  noticeable  decreases  or  stagnant  growth  in  EU  FDI 
were  observed  in  almost  all  emerging  markets:  Far  East  Asia, 
Latin  America,  the  Mediterranean  partner  countries  (MPCs).  The 
only  exception  was  Central/Eastern  European  countries  and 
Russia (CEECR) in 2003. EU FDI flows to these markets increased 
again  in  2004  and  2005.  The  CEECR  saw  the  biggest  growth  in 
2005  as  EU  FDI  flows  more  than  doubled  in  volume  compared 
with 2004. 

This chapter examines the evolution of direct investments made by 
the  EU  in  Latin  America,  Far  East  Asia,  Mediterranean  partner 
countries  (MPCs)  and  Central/Eastern  European  countries  and 
Russia (CEECR).  

Emerging markets 

• 

• 

• 

• 

Latin America: Argentina, Brazil, Paraguay, Uruguay, Bolivia, Chile, 
Colombia, Costa Rica, Cuba, Ecuador, Guatemala, Honduras, 
Mexico, Nicaragua, Panama, Peru, El Salvador, Venezuela 

Far East Asia: Asia 15 excluding Japan 

Mediterranean partner countries (MPCs): Maghreb countries 
(Algeria, Morocco, Tunisia), Mashrek countries (Egypt, Jordan, 
Lebanon, Palestinian Territory: Occupied, Syrian Arab Republic), 
Turkey, Israel  

Central/Eastern European countries and Russia (CEECR): Albania, 
Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia: the former 
Yugoslav Republic of, Romania, Serbia and Montenegro, Russia, 
Belarus, Ukraine 

15 Please refer to Annex 4 for the composition of Asia. 

(cid:4) 

Foreign direct investment  −  61 

FDI3.pdf   61

16-07-2007   17:01:29

 
 
 
 
 
 
 
 
                                                 
        Chapter 3 
        The role of emerging market 

EU FDI  flows  to  emerging  markets:  evolution  from  2001 
to 2005 

Over  the  period  2001-05,  EU  FDI  flows  to  emerging  markets 
fluctuated, peaking in 2004 when they were 71 % up on 2003 levels. 
EU outflows in 2005 remained at almost the same level as in 2004, 
standing at EUR 62 bn. 

2001 was a record year for Far East Asia with EU investments in the 
region reaching an unprecedented EUR 65 bn. Thereafter, following 
two years of steady decline, EU investments in the region settled at 
EUR 26 bn in 2004 and remained unchanged in 2005. 

The  unbroken  downward  trend  in  EU  investments  in  Latin  America 
that  was  observed  from  2001  (EUR  30 bn)  until  2003  (EUR  5 bn) 
was  reversed  in  2004  with  an  upsurge  in  EU  FDI  flows  to 
EUR 19 bn.  EU  flows  to  Latin  America  fell  again  in  2005  to 
EUR 7 bn. 

The CEECR attracted for the first time in 2003 a noteworthy amount 
of  EU  investment  activity,  rising  to  EUR  12 bn.  After  one  year  of 
dormant growth EU flows to the region more than doubled in 2005 to 
reach EUR 23 bn. 

EU FDI outflows to the MPCs fluctuated throughout the whole period 
under examination. The highest increase was recorded in 2005 with 
EUR 6 bn (+33 % on 2004 levels). 

Chart 3.1 

EU FDI flows towards Emerging Markets, EUR bn 

70

60

50

40

30

20

10

0

TOTAL

120

100

80

60

40

20

0

2001

2002

2003

2004

2005

Far East Asia
MPCs*

Latin America
CEECR**

Emerging Markets(TOTAL- right hand scale)

*The MPCs consist of Israel, Turkey, Mashrek and  Maghreb countries.  

**The  CEECR  comprise    Albania,  Bosnia  and  Herzegovina,  Bulgaria,  Croatia,  Macedonia:  the  former 
Yugoslav Republic of, Romania, Serbia and Montenegro, Russia, Belarus and Ukraine. 

62  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   62

16-07-2007   17:01:29

 
 
 
 
 
 
 
Chapter 3   
The role of emerging market   

Where did EU investors invest in Emerging Markets? 

The  share  of  EU  FDI  outflows  to  emerging  markets  in  total  EU 
external  FDI  flows  increased  between  2001  and  2004,  rising  from 
34 % in 2001 to 45 % in 2004, but fell to 36 % in 2005. Far East Asia 
attracted  most  of  the  EU  outflows  targeting  the  emerging  markets: 
over  the  five-year  period  this  region  received  47 %  of  such  FDI 
flows, whereas Latin America followed next with 24 %. 

Table 3.1 

Share  of  emerging  markets  in  total  extra-EU  FDI  outflows, 
2001 to 2005 

Emerging Markets
   Far East Asia
   Latin America
   MPCs*
   CEECR**
Other extra-EU countries

2001
34
21
10
1
2
66

2002
29
14
8
3
4
71

2003
26
11
4
3
8
74

2004
45
19
14
3
8
55

   ( %) 
2005
36
15
4
3
13
64

* The MPCs comprise Israel, Turkey, the Maghreb and Mashrek countries.  

** The CEECR consists of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia: the former Yugoslav 

Republic of, Romania, Serbia and Montenegro, Russia, Belarus, Ukraine. 

In 2005, Far East Asia took the highest share (15 %) of EU FDI flows 
to  emerging  markets.  China  including  Hong  Kong  accounted  for 
23 %  of  total  EU  outflows  to  this  region.  EU  FDI  outflows  to  the 
CEECR totalled 14 %, while FDI flows to Latin America represented 
4 %  and  to  the  MPCs  3 %  of  total  EU  outflows  targeting  the 
emerging markets.  

Chart 3.2 

EU FDI outflows in 2005: share of emerging markets 

MPCs*
3%

Latin America
4%

Other extra-EU 
countries
64%

Emerging
Markets
36%

CEECR**
14%

Far East Asia
15%

* The MPCs consist of Israel, Turkey, and countries from Mashrek and Maghreb. 

**  The  CEECR  comprise    Albania,  Bosnia  and  Herzegovina,  Bulgaria,  Croatia,  Macedonia:  the  former 

Yugoslav Republic of, Romania, Serbia and Montenegro, Russia, Belarus, Ukraine.

(cid:4) 

Foreign direct investment  −  63 

FDI3.pdf   63

16-07-2007   17:01:29

 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

EU FDI inflows from emerging markets: lower FDI flows 
to the EU in 2005 

A  traditional  feature  of  the  EU’s  bilateral  relations  with  emerging 
markets is that outward FDI outstrips inward FDI by a wide margin. 
When  comparing  the  five  years  under  consideration,  2001  was  the 
peak  year for FDI flows to the  EU from  the emerging markets, with 
EUR 22 bn. Far East Asia, with EUR 16 bn, was the main source of 
EU investment coming from the emerging markets. 

In  the  subsequent  two  years  the  emerging  markets’  investments  in 
the  EU  followed  a  downward  trend.  2003  was  a  trough,  with  the 
largest  drop  during  the  period  2001-05  (-70 %  compared  to  2002 
levels). The decline in the emerging markets’ investments in the EU 
was  reversed  in  2004  with  a  threefold  increase  (EUR  15 bn) 
compared  to  2003  levels  (EUR  5 bn).  Far  East  Asia  was  again  the 
main contributor to that increase as it accounted for 57 % of total EU 
inflows from the emerging markets.  

2005  saw  a  small  dip  in  EU  inflows  as  investments  from  the 
from 
emerging  markets  dropped 
Singapore,  the  Philippines  and  Hong  Kong  contributed  most  to  the 
fall in EU FDI inflows from the emerging markets. This decrease was 
largely  offset  by  increased  investments  from  the  CEECR  and  by 
Latin America to a lesser extent. 

to  EUR  14 bn. 

Investments 

Despite the drop in 2005, Far East Asia provided the most FDI in the 
EU  over  the  period  2001-05  (representing  an  average  of  50 %  of 
total  EU  FDI  inflows  from  the  emerging  markets),  followed  by  Latin 
America  (30 %),  the  CEECR  (11 %)  and  the  MPCs  (10 %).  It  is 
worth  noting  that  the  drop  in  2005  was  largely  compensated  by 
increased investments from the CEECR. 

Chart 3.3 

EU FDI inflows from Emerging Markets, EUR bn 

18

16
14
12
10

8
6
4

2
0

TOTAL

25

20

15

10

5

0

2001

2002

2003

2004

2005

Far East Asia

MPCs*

Latin America

CEECR**

Emerging Markets (TOTAL-right hand scale)

* The MPCs consist of Israel, Turkey, and countries from Mashrek and Maghreb. 

**  The  CEECR  comprise    Albania,  Bosnia  and  Herzegovina,  Bulgaria,  Croatia,  Macedonia:  the  former 

Yugoslav Republic of, Romania, Serbia and Montenegro, Russia, Belarus, Ukraine.

64  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   64

16-07-2007   17:01:29

 
 
 
 
 
 
Chapter 3   
The role of emerging market   

.3.1. Latin America: reduced EU FDI outward flows 
in 2005  

Chart 3.4 

EU FDI outward flows and stocks in Latin America, EUR bn 

250

200

150

100

50

0

+8%*

+4%*

+38%*

-35%*

-62%*

-53%*

+269%*

-63%*

2001

2002

2003

2004

2005

1

1 Estim ated stock value for 2005.
* Annual growth rate.

Stocks

Flows

EU  FDI  outflows  towards  Latin  America  kept  on  decreasing 
noticeably  during  the  period  2001-03,  dropping  from  EUR  30 bn  in 
2001  to  EUR  5 bn  in  2003.  In  2004  EU  FDI  flows  to  the  region 
picked  up,  at  EUR  19 bn,  but  halved  in  2005.  This  fall  was  mainly 
induced by a massive drop (-77 %) in EU outflows to Mexico, which 
was caused by Spain (EUR 2.3 bn in 2005 compared to EUR 7.3 bn 
in 2004). In addition, Spain, by withdrawing capital from Argentina of 
EUR  -1.4 bn,  and  the  United  Kingdom,  with  a  disinvestment  of 
EUR  -1 bn  in  Colombia  (99 %  of  the  total  EU  investment  in 
Colombia),  contributed  significantly  to  the  trimming-down  of  EU 
investments in Latin America in 2005. 

Table 3.2 

EU FDI outflows to Latin American countries, 2001–2005, 
EUR mn 

E xtra-E U
Latin Am erica
of w hich:
   M exico
   C olom bia
   U ruguay
   V enezuela
   B razil
   C hile
   A rgentina
N IC s2LA
M E R C O S U R

2001
 306 140
 29 644

2002
 133 897
 11 244

2003
 135 711
 5 233

2004
 136 388
 19 293

2005
 171 757
 7 127

 4 825
  420
 1 229
 2 914
 10 050
 3 048
 5 612
 23 534
 16 901

 6 608
-  369
  450
-  183
- 1 367
 1 564
 1 159
 7 961
  172

 1 999
  369
  88
-  275
 2 149
 1 643
- 1 455
 4 336
  764

 10 805
  605
  192
 1 064
 5 180
 1 976
- 1 166
 16 798
 4 169

 2 512
- 1 057
-  25
  945
 5 490
  939
- 1 313
 7 626
 4 164  

NICs2LA   =  Latin  American  newly  industrialised  countries  in  the  second  wave  of  industrialisation 

(Argentina, Brazil, Chile, Mexico). 

Mercosur   =  countries  of  the  Southern  Cone  Common  Market  (Argentina,  Brazil,  Paraguay, 

Uruguay). 

(cid:4) 

Foreign direct investment  −  65 

FDI3.pdf   65

16-07-2007   17:01:29

 
 
 
 
 
 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

Brazil  and  Mexico:  top  Latin  American  destinations  for 
EU FDI 

Table 3.3 

EU FDI outward stocks in Latin America at end-2004, 
EUR mn 

EU        

United 
Kingdom

Nether-
lands

France

Germany

Italy

Denmark Other MS*

 188 660

Latin America
of which:
   Mexico
   Colombia
   Uruguay
   Venezuela
   Brazil
   Chile
   Argentina
NICs2LA
MERCOSUR
: indicates missing values 

 38 594
 6 723
 2 116
 5 630
 70 768
 16 031
 30 599
 155 993
 104 264

 17 172

12 918

10 776

11 540

5 812

 2 366

 128 076

 3 491
 2 658
:
  306
 5 563
 3 025
 1 681
 13 759
 7 337

 3 678
  254
:
  235
 6 188
  676
  953
11 495
7 178

 1 406
  131
  257
  669
 5 882
  476
 1 648
9 412
7 819

 3 520
  569
:
  472
 5 000
  450
 1 021
9 991
6 091

  331
  53
  46
  188
 3 003
  111
 1 635
5 080
4 692

  706
  4
  3
  59
  488
  28
  967
 2 190
 1 459

 25 462
 3 054
:
 3 701
 44 644
 11 265
 22 694
 104 066

69 688  

NICs2LA  = Latin American newly industrialised countries in the second wave of industrialisation (Argentina, 

Brazil, Chile, Mexico). 

Mercosur  = countries of the Southern Cone Common Market (Argentina, Brazil, Paraguay, Uruguay). 

* The  residual  ’Other  MS’  (‘Other  Member  States’)  is  very  significant  because  it  includes  Spanish  FDI:  the 

geographical  breakdowns  of  FDI  stocks  are  not  available  for  Spain.  See  the  section  on  cumulated  flows 

below. 

At  end-2004,  83 %  of  EU  FDI  outward  stocks  in  Latin  American 
countries were held in the four Latin American NICs belonging to the 
second  wave  of  industrialisation:  Brazil,  Argentina,  Chile  and 
Mexico.  Brazil  was  the  main  host  of  extra-EU  FDI  stocks  in  Latin 
America with 38 % of the total, as the Netherlands with EUR 6.2 bn, 
France  with  EUR  5.9 bn  and  the  United  Kingdom  with  EUR  5.6 bn 
increased their investment in Brazil compared to end-2003 levels. 

Chart 3.5 

EU  FDI  outward  stocks  in  Latin  America  by  country  at  end-
2004 

Other
10%

Mexico
20%

Argentina
16%

Chile
8%

Colombia
4%

Uruguay
1%

Venezuela
3%

Brazil
38%

66  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   66

16-07-2007   17:01:30

 
 
 
Chapter 3   
The role of emerging market   

In 2005 Brazil was the main destination of EU FDI 
outward flows to Latin America 

In  2005  Brazil,  with  EUR  5 bn,  remained  the  top  destination  for  EU 
FDI flows towards Latin American countries, accounting for 77 % of 
EU total flows. Spain was the principal investor country, accounting 
for 32 % of EU outflows to Brazil. 

After  a  sharp  drop  from  2004  levels  (EUR  10.8 bn),  Mexico  ranked 
second  with  EUR  3 bn.  Spain,  with  a  drop  of  69 %,  and  the  United 
Kingdom,  with  a  reduction  of  90 %,  were  the  main  FDI  players 
instigating  the  lower  EU  FDI  outward  flows  to  Mexico.  Chile  and 
Venezuela  shared  the  third  place  with  nearly  EUR  1 bn  each. 
Argentina  experienced  disinvestments  of  more  than  EUR  1 bn  for 
the third consecutive year, while Colombia saw a 275 % decrease in 
EU investments. 

Chart 3.6 

EU FDI outflows by Latin American country in 2005, EUR mn 

 6 000

 4 000

 2 000

  0

- 2 000

Mexico

Argentina

Brazil

Chile

Venezuela Colombia

Other*

* ’Other’ has been computed as the difference between Latin America and the sum of the 

selected partner countries presented in the graph. 

(cid:4) 

Foreign direct investment  −  67 

FDI3.pdf   67

16-07-2007   17:01:30

 
 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

Spain: the main EU investor in Latin America 

Looking  at  the  cumulated  flows  from  2001  to  2005,  Spanish 
investment  represented  44 %  of  EU  direct  investment  in  Latin 
America. The United Kingdom and France were the second and third 
largest  EU  investors,  accounting  for  17 %  and  11 %  respectively  of 
total EU FDI targeting Latin American countries. 

Chart 3.7 

EU FDI cumulated flows towards Latin America from 2001 to 
2005 by Member State, EUR mn 

 35 000

 25 000

 15 000

 5 000

- 5 000

Germany

Spain

France

Italy

Netherlands Portugal

United

Other*

Kingdom

Despite the 70 % drop since 2004, Spain maintained its position as 
principal  EU  investor  in  Latin  America  by  investing  EUR  2.9 bn  in 
2005.  The  Netherlands,  with  EUR  1.6 bn,  followed  next,  while 
Germany took third place with EUR 1.4 bn. France, with EUR 1 bn, 
increased  significantly  its  investment  in  the  region  in  2004  (EUR 
337 mn).  In  contrast,  Portugal  realised  disinvestments  in  the  region 
reaching EUR 1 bn in 2005. 

Chart 3.8 

EU  FDI  flows  towards  Latin  America  in  2005  by  Member 
State, EUR mn 

 3 000

 2 000

 1 000

  0

- 1 000

Germany

Spain

France

Italy

Netherlands Portugal

United
Kingdom

Other*

*  ’Other  ’  (‘Other  Member  States’)  has  been  computed  as  the  difference  between  the 

estimated EU aggregate and the sum of the selected reporting countries. 

68  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   68

16-07-2007   17:01:30

 
 
 
 
 
 
Chapter 3   
The role of emerging market   

EU FDI in Latin America: limited profitability 

Table 3.4  

EU FDI income by country of origin, 2001-2005, EUR mn 

Extra-EU
Latin America
of which:
   Mexico
   Colombia
   Uruguay
   Venezuela
   Brazil
   Chile
   Argentina
NICs2LA
MERCOSUR

2001
 86 198
 6 029

2002
 85 769
 5 628

2003
 103 704
 6 501

2004
 150 424
 11 173

2005
 178 097
 14 273

  345
  397
  8
  613
 2 485
  430
 1 301
 4 562
 3 836

 1 884
  384
  133
  769
 3 249
  774
- 2 147
 3 760
 1 226

 1 612
  527
  41
  105
 2 931
  733
  113
 5 392
 3 095

 3 471
  744
  69
 1 017
 3 785
 1 756
-  249
 8 760
 3 620

 2 994
  858
  96
 1 402
 6 282
 2 218
-  280
 11 212
 6 112  

NICs2LA   =  Latin  American  newly  industrialised  countries  in  the  second  wave  of 

industrialisation (Argentina, Brazil, Chile, Mexico). 

Mercosur  = countries of the Southern Cone Common Market (Argentina, Brazil, Paraguay, 

Uruguay). 

Over the period 2001-05, the income generated by EU FDI outward 
stocks in Latin America fluctuated, reaching EUR 14 bn in 2005. This 
represented 8 % of total FDI income received by the EU from extra-
EU countries. Income payments by Brazil alone represented almost 
44 %  of  this  amount.  Mexico  was  the  second  source  of  income 
accounting for 21 % of income paid by Latin America to the EU. The 
rest of the Latin American countries accounted for smaller shares. 

Chart  3.9  shows  that  over  the  whole  period,  FDI  in  Latin  America 
was less profitable than FDI in the extra-EU as a whole. In 2004 the 
rate of return  16 was 7.6 %. 

During  2001-03  Venezuela,  Colombia  and  Mexico  were  the  most 
profitable destinations for EU FDI in Latin America (the average rate 
of return was 9.7 %, 9.4 % and 8.1 % respectively). 

In  2004  Venezuela  held  the  top  position  and  became  the  most 
profitable  destination  for  EU  FDI  in  Latin  America  with  a  rate  of 
return of 24.9 %. Chile followed next with 13.8 %. 

16  Rate  of  return  t  =  (income  paid  in  t)/(stocks  at the  end of  the period t  -1). 
See Table 3.4 for income and Table 12 in Annex 1 for 2004 stocks. 

(cid:4) 

Foreign direct investment  −  69 

FDI3.pdf   69

16-07-2007   17:01:30

 
 
 
 
 
 
 
 
                                                 
        Chapter 3 
        The role of emerging market 

Chart 3.9 

Rate of return on EU FDI assets in Latin America 

Extra-EU

Latin America

Mexico

Colombia

Uruguay

Venezuela

Brazil

Chile

Argentina

NICs2LA

-2%

3%

8%

13%

18%

23%

Average  2001-2003

2004

NICs2LA   =  Latin  American  newly  industrialised  countries  in  the  second  wave  of 

industrialisation (Argentina, Brazil, Chile, Mexico). 

70  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   70

16-07-2007   17:01:30

 
 
 
 
Chapter 3   
The role of emerging market   

3.2. Far East Asia: EU FDI to NICs117 rose 

EU FDI outflows towards Far East Asia 18 stable in 2005 

Chart 3.10 

EU FDI outward flows, stocks and their annual growth rates in 
Far East Asia, EUR bn 

300

250

200

150

100

50

0

+18%

+4%

-9%*

+12%*

-72%*

-20%*

+80%*

-2%*

2001

2002

2003

2004

1

2005

Stocks

Flows

1 Estimated stock value for 2005. 

* Annual growth rate. 

EU  FDI  outflows  towards  Far  East  Asia  kept  on  decreasing 
noticeably during the period 2001-03. With EUR 65 bn, 2001 was the 
year that EU investment reached its peak in the region. In the  next 
two  years  EU  investments  in  Far  East  Asia  fell,  standing  at  EUR 
15 bn in 2003. EU investment activity in the region picked up again 
in 2004 and continued at the same level of EUR 26 bn in 2005. 

The  share  of  FDI  flows  directed  towards  Far  East  Asia  in  total  EU 
outward  flows  shows  a  fluctuating  pattern.  It  started  from  21 %  in 
2001 and fell to 11 % in 2003. In 2005 it rose again to 15 %. 

17 NICs1  = the core newly industrialising countries (Hong Kong, South Korea, 
Singapore, Taiwan). 
18 Far East Asia  = Asia excluding Japan. 

(cid:4) 

Foreign direct investment  −  71 

FDI3.pdf   71

16-07-2007   17:01:30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
        Chapter 3 
        The role of emerging market 

Table 3.5 

EU FDI outflows to Far East Asian countries, 2001–2005, 
EUR mn 

2001
 306 140
 64 767

2002

2003
 133 897  135 711
 14 666

 18 227

2004

2005
 136 388  171 757
 25 872

 26 367

Extra-EU
Far East Asia
of which:
 2 170
India
  366
Thailand
  696
Malaysia
 3 942
Indonesia
 1 082
Singapore
  334
Philippines
 8 638
China (includ. Hong Kong)
 4 207
South Korea
 2 910
Taiwan
 11 105
NICs1
 1 399
NICs2A
ASEAN
 6 299  
NICs1   =  core  newly  industrialising  countries  (Hong  Kong,  South  Korea,  Singapore, 

 1 452
  349
 1 074
  138
 2 679
  431
 14 240
 1 790
 1 258
 16 761
 1 856
 4 631

  353
-  398
-  647
  121
 9 647
  378
 51 408
 1 143
 1 182
 61 088
-  666
 9 535

 1 075
  517
  308
-  434
 7 669
-  78
 6 417
 1 642
  435
 13 058
  744
7 641

  767
  315
-  120
 1 104
 2 772
-  190
 6 960
 2 103
  116
 8 761
  7
4 480

Taiwan). 

NICs2A   =  Asian  NICs  in  the  second  wave  of  industrialisation  (Malaysia,  Philippines, 

Thailand). 

ASEAN   =  Association  of  South-East  Asian  Nations  (10  countries).  For  more  details,  see 

Chart 3.11 and the BOP zones in Annex 4.

2005: China 19 is a top EU FDI destination. Indonesia and 
South Korea are on the rise 

In  2005  EU  FDI  flows  to  ASEAN  countries  (EUR  6.3 bn)  were  up 
36 % on the previous year (EUR 4.6 bn). 

China experienced diminishing EU investment activity since in 2005 
it  received  FDI  of  EUR  8.6 bn,  a  comparatively  large  drop  of  some 
39 %  on  2004  (EUR  14 bn).  The  Netherlands  and  the  United 
Kingdom  were  the  main  EU  countries  that  withdrew  capital  from 
China in 2005. Despite this decrease, China continued to be the top 
EU FDI destination among the Far East Asian countries. 

Indonesia  saw  unprecedented  growth  in  2005  as  EU  FDI  outflows 
reached  EUR  3.9 bn  compared  with  EUR  138 mn  in  2004.  At  the 
same  time,  the  EU  FDI  flows  to  South  Korea  shot  up  from  EUR 
1.8 bn  in  2004  to  EUR  4.2 bn  in  2005.  For  the  remaining  ASEAN 
countries  smaller  increases  were  observed,  the  main  ones  being 
outflows to India, growing from EUR 1.5 bn in 2004 to EUR 2.2 bn in 
2005,  and  to  Taiwan,  from  EUR  1.3 bn  in  2004  to  EUR  2.9 bn  in 
2005. 

Significant decreases were recorded in EU investments in Singapore 
(-60 %), Malaysia (-35 %) and the Philippines (-23 %). 

19 China including Hong Kong. 

72  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   72

16-07-2007   17:01:30

 
 
 
 
 
                                                 
Chapter 3   
The role of emerging market   

Chart 3.11 

EU  FDI  outward  stocks  in  Far  East  Asian  countries  at  end-
2004 

South Korea
9%

Taiwan
3%

Other
4%

Singapore
19%

ASEAN
31%

China (includ. 
Hong Kong)
49%

India
4%

Philippines
2%

Malaysia
3%

Thailand
3%

Other ASEAN
1%

Indonesia
3%

The  United  Kingdom,  Germany  and  the  Netherlands 
account for the main share of FDI outward stocks to Far 
East Asia 

At  end-2004,  49 %  of  EU  FDI  outward  stocks  with  Far  East  Asian 
countries were held in China including Hong Kong. Singapore (19 %) 
and South Korea (9 %) also hosted significant EU FDI capital. Three 
EU Member States held 47 % of total EU FDI outward stocks in Far 
East  Asian  countries:  the  United  Kingdom,  Germany  and  the 
Netherlands. 

Table 3.6 

EU  FDI  outward  stocks  in  Far  East  Asia  at  end-2004,  
EUR mn 

Far East Asia
of which:
India
Thailand
Malaysia
Indonesia
Singapore
Philippines
China (includ. Hong Kong)

South Korea
Taiwan
NICs1
NICs2A
ASEAN

EU        

of which:

United 
Kingdom

Germany

Nether-
lands

France Sweden

Other 
MS*

 220 376

 54 466

 27 376

 21 263

 11 961

 3 026

 102 284

 9 713
 7 453
 7 367
 6 567
 42 781
 3 727
 106 837

 19 423
 6 139
 153 902
 18 550
 69 767

 2 386
 1 343
 2 258
 1 671
 9 375
  828
 29 851

 1 728
 1 245
 39 531
 4 429
 16 030

 1 917
 1 038
 1 465
  959
 5 271
  319
 11 312

 3 861
  661
 12 911
 2 822
 9 109

  920
  815
  860
  805
 5 383
  669
 4 369

 3 939
 2 474
 14 822
 2 344
 8 997

  589
  651
  197
  673
 3 601
  222
 3 632

 1 294
  225
 6 628
 1 070
 5 750

  333
  118
  333
65
-  1
49
 1 169

772
  49
  917
  500
  573

 3 568
 3 488
 2 254
 2 394
 19 152
 1 640
 56 504

 7 829
 1 485
 79 093
 7 385
 29 308  

*’Other  MS’  (‘Other  Member  States’)  has  been  computed  as  the  difference  between  the 

estimated EU aggregate and the sum of the selected reporting countries. 

(cid:4) 

Foreign direct investment  −  73 

FDI3.pdf   73

16-07-2007   17:01:31

 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

In 2005, Germany was the main direct investor in Far East Asia with 
27 % of total EU FDI outflows to the area, while the United Kingdom 
followed  very  closely  with  23 %.  The  Netherlands,  France  and 
Belgium  also  continued  to  make  significant  investments  in  the 
region. 

Chart 3.12 

EU FDI flows towards Far East Asia in 2005 

Other MS
25%

Belgium
4%

Germany
27%

France
8%

Netherlands
13%

United 
Kingdom
23%

Inflows from Far East Asia contracted in 2005 

Table 3.7 

EU  FDI  inflows  from  Far  East  Asian  countries,  2001-2005, 
EUR mn 

2001
 145 867
 16 181

2002

2003
 126 567  123 541
 2 861

 7 384

2004

2005
 53 072  94 149
  362

 8 419

Extra-EU
Far East Asia
of which:
  220
India
  49
Thailand
-  41
Malaysia
  391
Indonesia
- 1 878
Singapore
  206
Philippines
 1 472
China (includ. Hong Kong)
 1 201
South Korea
  159
Taiwan
  556
NICs1
  212
NICs2A
ASEAN
- 1 340  
NICs1   =  core  newly  industrialising  countries  (Hong  Kong,  South  Korea,  Singapore, 

  108
  442
  332
-  284
 5 942
  164
 10 092
-  471
  84
 15 099
  937
 6 595

  1
  16
  12
  74
  487
 1 823
 4 601
 1 278
-  68
 6 439
 1 849
 2 440

  615
-  92
  72
-  193
  247
  50
 1 726
  304
-  283
 1 705
  31
 336

  133
  608
 1 007
  176
 1 463
  14
 3 166
-  182
  737
 4 942
 1 632
3 341

Taiwan). 

NICs2A   =  Asian  NICs  in  the  second  wave  of  industrialisation  (Malaysia,  Philippines, 

Thailand). 

ASEAN   =  Association  of  South-East  Asian  Nations  (10  countries).  For  more  details,  see 

Chart 3.11 and the BOP zones in Annex 4. 

74  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   74

16-07-2007   17:01:31

 
 
 
Chapter 3   
The role of emerging market   

in  2001,  which  was 

EU  FDI  inflows  from  Far  East  Asia  fluctuated,  starting  at  EUR 
16.2 bn 
the  peak  year.  They  declined 
significantly for the next two years and grew to EUR 8.4 bn in 2004. 
EU  inward  investments  from  the  region  reached  a  new  low  at  EUR 
362 mn in 2005. The main country that contributed to that decrease 
was Singapore, which realised disinvestments of EUR -1.9 bn in the 
EU. 

though  China’s 

Even 
the  EU  dropped 
investment  activity 
significantly in 2005 from the previous year (-68 %), it held the major 
share  of  the  investments  made  in  the  EU  throughout  the  period 
under consideration. 

in 

Significant  investments  in  the  EU  were  also  made  by  South  Korea, 
with  EUR  1.2 bn.  Indonesia,  India,  the  Philippines,  Thailand  and 
Taiwan accounted for much smaller investments in the EU in 2005. 
The rest of the ASEAN countries withdrew capital from the EU. 

EU FDI in Far East Asia more profitable than FDI in extra-
EU as a whole 

Table 3.8 

EU FDI income by country of origin, 2001–2005, EUR mn 

Extra-EU

Far East Asia

India

Thailand

Malaysia

Indonesia

Singapore

Philippines

China (inlcud. Hong Kong)

South Korea

Taiwan

NICs1

NICs2A

2001

2002

2003

2004

2005

 86 198

 85 769

 103 704

 150 424

 178 097

 14 469

 16 401

 14 252

 25 026

 28 271

  569

  757

  872

 1 299

 2 517

  200

 6 904

  615

  165

 8 823

 1 828

  989

  862

 1 622

 1 006

 3 495

  231

 5 181

 1 060

  698

 8 989

 2 715

  969

  634

 1 082

  552

 2 804

  211

  923

  832

 1 333

 1 171

 5 807

  192

 1 186

  798

 1 393

 1 143

 7 275

  258

 6 045

 10 483

 11 704

  732

  701

 8 249

 1 930

 2 387

  795

 2 422

  629

 17 255

 19 226

 2 358

 2 450
 11 051  

ASEAN
NICs1  = core newly industrialising countries (Hong Kong, South Korea, Singapore, 

 5 364

 9 461

 5 807

 7 276

Taiwan). 

NICs2A  = Asian NICs in the second wave of industrialisation (Malaysia, Philippines, 

Thailand). 

ASEAN  = Association of South-East Asian Nations (10 countries). For more details, see 

Chart 3.11 and the BOP zones in Annex 4.

Over the period 2001-03, the income generated by EU FDI outward 
stocks  in  Far  East  Asia  was  stable,  at  an  average  of  around  EUR 
15 bn. For the next two years it kept on escalating, reaching its peak 
in 2005 at EUR 28 bn, 13 % up on the previous year. 

(cid:4) 

Foreign direct investment  −  75 

FDI3.pdf   75

16-07-2007   17:01:31

 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

The  income  recorded  for  2005  represented  16 %  of  the  income 
received by the EU from FDI assets in extra-EU countries. Between 
2001 and 2005, China, including Hong Kong, was the main source of 
income, followed by Singapore. 

Globally,  EU  FDI  in  Far  East  Asia  was  more  profitable  than  FDI  in 
extra-EU countries as a whole (13 % against 9 % in 2004). 

In terms of the investment profitability of individual countries, results 
differ. For the period 2001-03 Malaysia  was the  most profitable Far 
East  Asian  destination,  with  the  average  rate  of  return  20  reaching 
16 %.  India  followed  closely  with  a  rate  of  return  of  15 %  whereas 
Taiwan took third place in the ranking with 12 %.  

In  2004,  Malaysia  continued  to  be  the  most  profitable  destination 
(with  a  19 %  rate  of  return).  Indonesia  together  with  Singapore 
ranked second in terms of investment profitability with around 17 % 
each  and  South  Korea  together  with  India  (with  almost  12 %  each) 
followed not far behind. 

Chart 3.13 

Rate of return on EU FDI outward stocks in Far East Asia 

ASEAN

NICs2A

NICs1

Taiwan

South Korea

China (includ. Hong Kong)

Philippines

Singapore

Indonesia

Malaysia

Thailand

India

Far East Asia

Extra-EU

0%

5%

10%

15%

20%

Average 2001-2003

2004

NICs1  = core newly industrialising countries (Hong Kong, South Korea, Singapore, 

Taiwan). 

NICs2A  = Asian NICs in the second wave of industrialisation (Malaysia, Philippines, 
Thailand). ASEAN  = Association of South-East Asian Nations (10 countries). For more 
details, see Chart 3.11 and the BOP zones in Annex 4. 

20 Rate of return t  = (income paid in t)/(stocks at the end of the period t-1). See 
Table 3.8 for income and Table 12 in Annex 1 for 2004 stocks. 

76  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   76

16-07-2007   17:01:31

 
 
 
 
 
                                                 
Chapter 3   
The role of emerging market   

3.3.  Mediterranean  partner  countries:  towards  a 
better partnership? 

EU  FDI  flows  to  Mediterranean  partner  countries 21 
amounted to EUR 5.6 bn in 2005 

Chart 3.14 

EU FDI outward flows, stocks and their annual growth rates in 
Mediterranean Partner Countries, EUR bn 

45

40

35

30

25

20

15

10

5

0

+16% *

+36% *

+14% *

-6% *

-16% *

+11% *

-1% *

+33% *

2001

2002

2003

2004

1

2005

1 Estimated stock value for 2005.
* Annual growth rate.

  Stocks

  Flows

Over  the  period  2001-04,  EU  FDI  flows  to  Mediterranean  partner 
countries  (MPCs)  remained  relatively  stable  at  around  EUR  4 bn. 
2005 was the year of the highest growth (EUR 5.6 bn). 

Turkey  was  the  most  favourable  destination  for  EU  FDI 
in 2005 

The  increase  in  EU  FDI  flows  in  2005  to  MPCs  was  mainly  due  to 
Turkey, with EUR 3.3 bn, accounting for 59 % of total EU outflows to 
MPCs. EU outflows to Israel increased too and that country’s share 
of EU outward flows to MPCs was 13 % in 2005. 

Unlike  Turkey  and  Israel,  the  Maghreb  countries  faced  trimmed 
down investments (from EUR 1.7 bn in 2004 to EUR 0.8 bn in 2005). 
Reduced 
the 
Mashrek  countries  and  particularly  towards  Egypt,  where  EU  FDI 
outflows fell from EUR 1.1 bn in 2004 to EUR 0.8 bn in 2005. 

investment  activity  was  also  observed 

towards 

21  The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries. 
Maghreb  countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  = 
Egypt, Jordan, Lebanon, Palestinian Territory, Syrian Arab Republic. 

(cid:4) 

Foreign direct investment  −  77 

FDI3.pdf   77

16-07-2007   17:01:31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
        Chapter 3 
        The role of emerging market 

Table 3.9 

EU  FDI  outflows  to  Mediterranean  partner  countries,  2001–
2005, EUR mn 

Extra-EU
MPCs
  Turkey
  Israel
Maghreb countries
 of which:
  Morocco
Mashrek countries
  of which:
  Egypt

2001

2002

2003

2004

2005

 306 140
 4 585
 2 940
  309
  781

 133 897  135 711
 4 244
 1 163
  131
 1 731

 3 840
  802
  204
  833

 136 388  171 757
 5 550
 3 252
  702
  775

 4 185
 1 131
  180
 1 713

  209
  555

  227
 2 001

 1 707
 1 219

  167
 1 161

  523

 1 306

  995

 1 131

  690
  821

  787  

The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries.  Maghreb 
countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  =  Egypt,  Jordan,  Lebanon, 
Palestinian Territory, Syrian Arab Republic. 

Table 3.10 

Shares of main destination in FDI outflows towards MPCs, 
2001–2005 22 – (%) 

Turkey
Israel
Maghreb countries
  of which:
Morocco
Mashrek countries
of which:
 Egypt

2001
  64
  7
  17

  5
  12

  11

2002
  21
  5
  22

  6
  52

  34

2003
  27
  3
  41

  40
  29

  23

2004
  27
  4
  41

  4
  28

  27

2005
  59
  13
  14

  12
  15

  14

The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries.  Maghreb 
countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  =  Egypt,  Jordan,  Lebanon, 
Palestinian Territory, Syrian Arab Republic. 

In terms of shares, Turkey was by far the main host country in 2005 
with 59 %. In 2002 it was overtaken by Egypt (34 % of EU FDI flows 
to MPCs versus 21 % for Turkey). In 2003, the situation was for the 
first time in favour of Morocco, with 40 % of EU FDI flows to MPCs. 
2004  was  the  year  when  Egypt  together  with  Turkey  shared  the 
principal host country position with 27 % each. 

22 Due to rounding, the sum of all shares does not always equal 100%. 

78  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   78

16-07-2007   17:01:32

 
 
 
 
 
 
 
 
 
                                                 
Chapter 3   
The role of emerging market   

France was the main EU investor in MPCs at end-2004 in 
terms of FDI stocks 

Table 3.11 

EU FDI outward stocks in MPCs at end-2004, EUR mn 

EU of 
which:

France

United 
Kingdom

Germany

Nether-
lands

Sweden

Other
MS*

 38 612

 13 301

 2 490

 14 030

 9 366

 8 791

 9 261

 1 339

  430

 6 304

 5 627

 1 188

 4 245

 1 916

  352

  672

  102

 1 305

 3 718

 2 713

  103

  323

  140

  579

 3 672

 1 507

  510

  229

:

 1 426

 2 462

 15 254

 1 392

48

 1 004

 4 434

 1 047

 5 498

  996

  18

 2 501

 4 275

MPCs

Turkey

Israel

Maghreb countries

of which:

Morocco

Mashrek countries

of which:

  738

Egypt

 6 893

 3 306  
The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries.  Maghreb 
countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  =  Egypt,  Jordan,  Lebanon, 
Palestinian Territory, Syrian Arab Republic. 

 1 188

 1 299

  343

  19

* ’Other MS’ (‘Other Member States’) has been computed as the difference between the 

estimated EU aggregate and the sum of the selected declaring countries. 

Direct investors from the EU held EUR 39 bn  worth of FDI outward 
stocks  in  MPCs,  equal  to  1.9 %  of  extra-EU  stocks  at  end-2004. 
France, the United Kingdom and Germany  were the main suppliers 
of  FDI  to  MPCs,  accounting  for  EUR  17 bn  cumulatively  or  about 
45 %  of  total  EU  outward  stocks  in  that  region.  Around  half  of  all 
their  respective  investments  in  MPCs  were  localised  in  just  one 
country  or  zone:  the  Maghreb  countries  for  France  (68 %),  and 
Turkey for Germany (73 %) and the United Kingdom (45 %). 

51 % of EU FDI flows in MPCs came from France and Belgium in 
2005 

Chart 3.15 

EU FDI flows to MPCs in 2005 by EU Member State, EUR mn 

 2 000

 1 800

 1 600

 1 400

 1 200

 1 000

  800

  600

  400

  200

  0

Belgium

Germany

France

Italy

Netherlands Other MS*

* Other MS has been computed as the difference between the estimated EU aggregate and 

the sum of the selected declaring countries.

(cid:4) 

Foreign direct investment  −  79 

FDI3.pdf   79

16-07-2007   17:01:32

 
 
 
 
 
 
 
        Chapter 3 
        The role of emerging market 

In 2005 the most active European enterprises in the MPC area were 
from  France,  accounting  for  EUR  1.8 bn  (of  which  EUR  0.8 bn  was 
directed  to  the  Maghreb  countries).  Belgian  investors  focused  on 
Turkey, in which they invested EUR 1.1 bn. 

In  Chart  3.15  the  value  of  EU  FDI  outflows  from  the  'Other  MS'  is 
relatively  high.  This  aggregate,  which  has  been  calculated  as  the 
difference between the EU estimated aggregate and the sum of the 
declaring  EU  countries  that  had  sufficient  data  availability,  is 
substantial  as  it  contains  Spanish  FDI,  which  was  not  made 
available for all the MPC constituent parts. 

EU FDI in MPCs more profitable than FDI in extra-EU as 
a whole for 2001-2005 

Table 3.12 

EU  FDI  income  from  MPCs  by  country  of  origin,  2001-2005, 
EUR mn 

Extra-EU
MPCs
Turkey

Israel
Maghreb countries
 of which:
Morocco
Mashrek countries
 of which:
Egypt

2001
 86 198
 1 991
  377

2003

2002

2004

2005
85 769 103 704 150 424  178 097
 4 364
 1 323

3 364
 1 191

2 907
  853

3 140
  500

-  37
  378

-  80
 1 042

  43
  827

  67
  780

  207
 1 258

  160
 1 273

  393
 1 678

  378
 1 184

  261
 1 326

  199
 1 576

  821

 1 170

  723

  903

 1 327  

The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries.  Maghreb 
countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  =  Egypt,  Jordan,  Lebanon, 
Palestinian Territory, Syrian Arab Republic. 

In  2005,  EU  FDI  outward  stocks  in  MPCs  generated  income 
payments  of  EUR  4.4 bn.  The  Mashrek  countries  were  the  main 
source of this income with 36 %, of which Egypt accounted for 84 %, 
whereas  30 %  was  generated  by  Turkey.  The  Maghreb  countries 
accounted for 29 %. 

The  profitability  23  of  FDI  in  MPCs  over  the  whole  period  under 
investigation remained at similar levels, around 11 %. 

EU  investments  in  MPCs  were  more  profitable  than  investments  in 
the extra-EU countries as a whole for the period 2001-04. 

Looking at the individual areas and countries inside the MPC group, 
the rate of return on direct investment positions in 2004 shows high 

23 Profitability refers to the rate of return t  = (income paid in t) / (stocks at the 
end of the period t-1). 

80  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   80

16-07-2007   17:01:32

 
 
 
 
 
 
 
 
                                                 
Chapter 3   
The role of emerging market   

profitability  for  EU  investments  in  Egypt  (19 %)  followed  by  Turkey 
(10 %) and the Maghreb countries (9 %). 

Chart 3.16 

Rate of return on EU FDI outward stocks in MPCs 

Egypt

Mashrek countries

Morocco

Maghreb countries

Israel

Turkey

MPCs

Extra-EU

0%

5%

10%

15%

20%

25%

  Average 2001-2003

  2004

The  MPCs  comprise  Israel,  Turkey,  the  Maghreb  and  Mashrek  countries.  Maghreb 
countries  =  Algeria,  Morocco  and  Tunisia.  Mashrek  countries  =  Egypt,  Jordan,  Lebanon, 
Palestinian Territory, Syrian Arab Republic. 

(cid:4) 

Foreign direct investment  −  81 

FDI3.pdf   81

16-07-2007   17:01:33

 
 
 
 
 
        Chapter 3 
        The role of emerging market 

3.4.  Central/Eastern  European  countries  and 
Russia: more than double EU FDI outflows in 2005 

53 % increase in EU investments in Russia in 2005 

Chart 3.17 

EU FDI outward flows, stocks and their annual growth rates in 
Russia, EUR bn 

35

30

25

20

15

10

5

0

+43%*

+42%*

+45%*

-4%*

+214%*

+53%*

-2%*

-24%*

2001

2002

2003

2004

1

2005

  Flows

  Stocks

1 Estimated value for 2005 stocks. 

*Annual growth rate. 

EU  investment  activity  in  the  CEECR  followed  an  upward  trend, 
starting  from  EUR  5 bn  in  2001  and  escalating  to  EUR  11 bn  in 
2004. In the following year EU investors stepped up still further their 
engagement  in  this  region  by  placing  there  a  hefty  amount  of  FDI 
totalling EUR 23 bn (108 % increase on 2004). 

In  terms  of  flows,  Russia  was  the  main  host  country  for  EU 
investment  capital,  attracting  EUR  9 bn  in  2005.  The  Netherlands 
ranked first in terms of investment activity in Russia, with EUR 3 bn. 
Ukraine  was  the  second  most  important  destination  in  2005, 
receiving EUR 6 bn. Germany, with EUR 4 bn, was the main investor 
in Ukraine. 

82  −  Foreign direct investment 

 (cid:4)(cid:3)

FDI3.pdf   82

16-07-2007   17:01:33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 3   
The role of emerging market   

Chart 3.18 

EU  outflows  to  Central/Eastern  European  countries  and 
Russia, EUR bn 

10

9

8

7

6

5

4

3

2

1

0

TOTAL

24
22

20
18

16

14

12

10
8

6
4

2

0

2001

2002

2003

2004

2005

 Romania
 Russia
 Ukraine

 Croatia
 Serbia and Montenegro
 CEECR (TOTAL-right hand scale)

CEECR = central/Eastern European countries and Russia. 
CEECR comprises Albania, Bulgaria, Belarus, Croatia, Former republic of Macedonia, 

Romania,Serbia,Bosnia, Russia and Ukraine. 

(cid:4) 

Foreign direct investment  −  83 

FDI3.pdf   83

16-07-2007   17:01:33

 
 
FDI3.pdf   84

16-07-2007   17:01:33

        
 
Chapter 4:  
EU FDI by economic activity 

FDI3.pdf   85

16-07-2007   17:01:33

 
FDI3.pdf   86

16-07-2007   17:01:33

(cid:3)

  
 
  EU FDI by economic activity 

     Chapter 4   

This  chapter  focuses  on  the  industrial  allocation  of  FDI  flows  and 
stocks,  for  which  Eurostat  applies  a  classification  consistent  with 
NACE Rev.1.1 (see Annex 3). Data are shown for 10 core economic 
activities  as  well  as  the  six  main  sub-categories  of  manufacturing 
activity. 

The  analysis  will  be  based  for  the  first  time  on  EU-25  FDI  flows 
figures 24.  FDI  flows  from  2002  onwards  refer  to  the  total  FDI  flows 
(equity capital plus other capital plus reinvested earnings). 

Owing  to  significant  revisions  in  the  FDI  data  from  the  Member 
States,  direct  comparison  of  this  year’s  analysis  regarding  the 
periods  until  2003  with  the  respective  periods  in  the  previous 
pocketbook (yearbook 2006) might not be realistic. 

Table 4.1 

EU  outward  and  inward  FDI  stocks25  (end-2004)  and  flows26 
(2004) by economic activity, EUR mn 

Abroad

In the reporting 
economy

Flows
2004 

Stocks 
end-2004 

Flows 
2004 

Stocks 
end-2004

 136 388  2 048 346 
 1 062 
  7 
 102 775 
 17 197 
 391 224 
 18 922 
 49 750 
-  482 
 29 328 
 7 088 
 144 268 
 9 657 
 43 140 
 2 313 
 20 812 
 1 028 
 51 703 
  993 
 52 223 
- 1 675 
 45 943 
-  365 
 15 391 
 4 019 
 52 473  1 411 463 
 81 433 
 9 841 
 117 173 
 909 625 
 235 582 
 57 804 
 80 488 

-  464 
  54 
 2 437 
 63 571 
- 16 414 
 3 272 
 44 135 

 53 072  1 580 532 
  832 
  90 
 26 517 
- 3 086 
 292 644 
 10 580 
 36 317 
 3 862 
 39 004 
- 5 763 
 103 629 
 5 797 
 31 967 
 1 007 
 16 287 
- 2 688 
 30 858 
 2 652 
 34 582 
 5 713 
 10 264 
 5 269 
 4 151 
- 1 014 
 34 292  1 198 344 
 77 064 
 8 029 
-  452 
 9 132 
 30 557 
 5 374 
 723 999 
 27 534 
 309 201 
- 8 215 
 48 382 
 2 017 
 47 780 
 6 941 

Total
Agriculture, hunting and fishing
Mining and quarrying
Manufacturing
  - Food products
  - Textiles and wood activities
  - Petroleum, chemical, rubber, plastic products
  - Metal and mechanical products
  - Machinery, computers, RTV, communication
  - Vehicles and other transport equipment
  - Other manufacturing
Electricity, gas and water
Construction
Services
  - Trade and repairs
  - Hotels & restaurants
  - Transport and communication
  - Financial intermediation
  - Business services
  - Other services
Other sectors

24 EU-25 FDI flows figures for 2001 include equity capital and other capital but 
exclude reinvested earnings. 
25  FDI  outward  stocks  are  classified  according  to  the  activity  of  the  non-
resident enterprise. FDI inward stocks are classified according to the activity of 
the resident enterprise. 
26  FDI  outward  flows  are  classified  according  to  the  activity  of  the  direct 
investor.  FDI  inward  flows  are  classified  according  to  the  activity  of  the 
recipient of FDI, the direct investment enterprise. 

(cid:4) 

Foreign direct investment  −  87 

FDI3.pdf   87

16-07-2007   17:01:34

 
 
 
 
 
 
                                                 
           Chapter 4  
           EU FDI by economic activity  

4.1. Comparing EU inward and outward FDI: net 
position by economic activity 

At  end-2004,  the  European  Union  held  FDI  net  outward  stocks 
(outward stocks minus inward stocks) worth EUR 468 bn in extra-EU 
countries, which is 11 % down on end-2003 (EUR 526 bn). In 2004 
total  EU  FDI  net  outflows  amounted  to  EUR  83 bn  as  EU 
investments abroad were higher than FDI inward flows to the EU.  

financial 
Large  net  outward 
intermediation,  with  EUR  36 bn  in  2004,  as  well  as  in  mining  and 
quarrying, with EUR 20 bn. 

investments  were  detected 

in 

It is interesting to note that trade and repairs together with business 
services  were  the  target  of  strong  net  FDI  inflows  in  2004,  with 
around  EUR  8 bn  each.  They  were  followed  by  electricity,  gas  and 
water, with EUR 6 bn, and the sub-sector 'food products', with EUR 
4 bn. 

Concerning net  outward stocks, high concentrations were observed 
in financial intermediation (EUR 186 bn), as well as in transport and 
communication  (EUR  87 bn)  and  in  mining  and  quarrying  (EUR 
76 bn).  In  2004  net  outward  stocks  were  in  fact  observed  for  all  of 
the  sectors  presented  in  Table  4.2.  The  only  exceptions  were 
business  services,  with  net  inward  stocks  of  EUR  74 bn,  and  the 
sub-sector 'textiles and wood activities' (EUR 10 bn). 

Table 4.2 

EU FDI net (outward minus inward) flows and stocks,  
EUR mn 

EU Net (Outward minus inward)

Agriculture, hunting and fishing
Mining and quarrying
Manufacturing
 - Food products
 - Textiles and wood activities
 - Petroleum, chemical, rubber, plastic products
 - Metal and mechanical products
 - Machinery, computers, RTV, communication
 - Vehicles and other transport equipment
Electricity, gas and water
Construction
Trade and repairs
Hotels and restaurants
Transport and communication
Financial intermediation
Business services
Other services
Total

88  −  Foreign direct investment 

Flows 
2004

-  83 
 20 283 
 8 342 
- 4 344 
 12 851 
 3 860 
 1 306 
 3 716 
- 1 659 
- 5 634 
 5 033 
- 8 493 
  506 
- 2 937 
 36 037 
- 8 199 
 1 255 
83 316 

Stocks
end-2004
  230 
 76 258 
 98 580 
 13 433 
- 9 676 
 40 639 
 11 173 
 4 525 
 20 845 
 35 679 
 11 240 
 4 369 
  709 
 86 616 
 185 626 
- 73 619 
 9 422 
 467 814   

(cid:4)(cid:3)

FDI3.pdf   88

16-07-2007   17:01:34

 
 
 
 
 
 
 
 
 
  EU FDI by economic activity 

     Chapter 4   

4.2. Outward EU FDI by economic activity: sharp fall 
in services 

EU FDI outflows to extra-EU countries amounted  to EUR 136 bn in 
2004,  reaching  a  cumulative  total  of  EUR  698 bn  for  the  period 
2001–04. 

One of the major features of 2004 was the sharp drop in investments 
in  services,  which  fell  from  EUR  80 bn  in  2003  to  EUR  52 bn  in 
2004.  The  main  sector  accounting  for  this  in  terms  of  magnitude  is 
business  services,  which 
to  a 
disinvestment  of  EUR  -16 bn  in  2004.  Significant  decreases  were 
observed  also 
in  hotels  and 
restaurants (-96 %) and in the transport sector, down from EUR  
-171 mn in 2003 to EUR -2 bn in 2004. 

trade  and  repairs  (-106 %), 

fell  from  EUR  5 bn 

in  2003 

in 

In  contrast,  EU  FDI  outflows  to  extra-EU  countries  more  than 
doubled  in  the  telecommunications  sector,  climbing  from  EUR  2 bn 
in 2003 to almost EUR 4 bn in 2004. Significant increases were also 
observed  in  other  sectors27  (59 %),  in  the  manufacturing  sector 
(31 %), and in other services (32 %). 

Compared to EU GDP, the outflows in services followed a downward 
trend in the years under consideration as they started at 2 % in 2001 
and stood at 0.5 % in 2004. 

The  share  of  services  in  cumulated  extra-EU  outflows  was  64 % 
over  the  2001-04  time  span;  it  reached  its  peak  in  2002  (89 %  of 
total extra-EU outflows) before falling to 38 % in 2004, in contrast to 
other  sectors,  which  grew  from  30  %  in  2003  to  a  48 %  share  of 
extra-EU outflows in 2004. 

Chart 4.1 

EU  FDI  outflows*  to  extra-EU  countries  in  major  sectors, 
2001-2004 
% GDP

5%

4%

3%

2%

1%

0%

2001

2002

2003

2004

Services

Manufacturing

Other sectors

* Excluding reinvested earnings until 2001. Total FDI outflows from 2002 onwards.

27  Other  sectors  includes:  agriculture  and  fishing,  mining  and  quarrying, 
electricity,  gas  and  water,  construction,  private  purchases  &  sales  of  real 
estate, and not allocated. 

(cid:4) 

Foreign direct investment  −  89 

FDI3.pdf   89

16-07-2007   17:01:34

 
 
 
 
 
 
 
 
                                                 
           Chapter 4  
           EU FDI by economic activity  

FDI  flows  to  extra-EU  countries  centred  on  financial 
intermediation in 2004 

EU outflows in financial intermediation remained at almost the same 
levels  as  in  2003.  This  sector  ranked  first  in  volume  terms, 
representing 47 % in 2004. It is worth noting that nearly 52 % of the 
investments made in financial intermediation resulted from the sub-
sector 'other financial intermediation' (see Table 10 in Annex 1). This 
predominance was due to a number of large transactions, especially 
in the form of Mergers and Acquisitions (M&As). 

Table 4.3 

Extra-EU FDI outflows* by economic activity, 2001-2004, 
EUR mn 

2001
 17 221 
 45 031 

2002
 1 242 
 5 838 

2003
 14 200 
 14 472 

 4 149 
- 3 516 
 7 501 
 1 597 
-  46 
 80 316 

- 5 725 
 6 470 
 4 218 
 4 887 
 8 571 
 119 485 

 5 381 
-  907 
 6 498 
 5 869 
 12 906 
 191 858 

Mining and quarrying
Manufacturing
of which
   Food products
   Textiles & wood activities
   Petroleum,chemical,rubber,plastic products
   Metal & mechanical products
   Vehicles & other transport equipment
Services
of which
   Trade and repairs
 7 768 
   Hotels and restaurants
- 1 314 
   Transport
-  171 
   Telecommunications
 1 919 
   Financial intermediation
 62 448 
   Business Services
 4 541 
   Other Services
 5 125 
**Rest of the sectors
 26 723 
Total
 135 711 
*Excluding reinvested earnings until 2001. Total outward FDI since 2002.

 6 877 
-  972 
 2 165 
 40 783 
 119 825 
 28 342 
- 5 162 
 37 474 
 291 584 

 6 815 
- 2 065 
 1 222 
- 9 949 
 97 258 
 20 031 
 6 173 
 7 332 
 133 897 

2004
 17 197 
 18 922 

2001-2004
 49 860 
 84 263 

-  482 
 7 088 
 9 657 
 2 313 
  993 
 52 473 

 3 323 
 9 135 
 27 874 
 14 666 
 22 424 
 444 132 

-  464 
-  54 
- 1 948 
 4 385 
 63 571 
- 16 414 
 3 397 
 47 796 
 136 388 

 20 996 
- 4 405 
 1 268 
 37 138 
 343 102 
 36 500 
 9 533 
 119 325 
 697 580   

**Rest  of  the  sectors  includes:  agriculture  and  fishing,  electricity,  gas  and  water, 

construction, private purchases & sales of real estate, and unallocated. 

The  second  sector,  in  terms  of  investment  activity,  was  mining  and 
quarrying  (see  Chart  4.2),  with  13 %  of  EU  total  outward  FDI  flows 
(EUR  17 bn).  The  United  Kingdom  was  the  main  investor  in  this 
sector,  accounting  for  89 %  of  investment  made  in  mining  and 
quarrying, of which EUR 900 mn went to Canada. 

It  is  worth  noting  that  the  business  services  sector  slumped  from 
EUR 5 bn in 2003 to a disinvestment of EUR -16 bn in 2004. Almost 
all the major FDI players significantly scaled back their investment in 
this  sector  (i.e.  Germany  from  EUR  9 bn  in  2003  to  EUR  -4 bn  in 
2004). The negative flows could be attributed to inter-company loans 
between  affiliated  enterprises  and  sales  of  EU  companies  active  in 
business services. 

90  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   90

16-07-2007   17:01:34

 
 
 
 
 
 
 
 
 
 
  EU FDI by economic activity 

     Chapter 4   

Chart 4.2 

EU FDI outflows* 2004 by economic activity, EUR bn 

(EUR bn)

60

50

40

30

20

10

0

-10

-20

Financial intermediation

Rest of the sectors

Mining & quarrying

Petroleum, chemical,
rubber, plastic products
Textiles & wood
activities
Telecommunications

Metal & mechanical
products
Vehicles & other
transport equipment
Trade & repairs

Food products

Business Services

*Excluding reinvested earnings until 2001. Total outward FDI since 2002.

Rest of the sectors includes: agriculture and fishing, electricity, gas and water, construction, 

private purchases & sales of real estate, and unallocated. 

Extra-EU FDI outward stocks still highly diversified at 
end-2004 

EU  FDI  stocks  in  extra-EU  countries  amounted  to  EUR  2 048 bn  in 
2004, 2 % up on 2003 (EUR 2 011 bn). 

As shown in Chart 4.3, these investments were highly diversified. It 
can  be  noted,  however, 
financial 
intermediation 
(12 %),  petroleum, 
chemical,  rubber  and  plastic  products  (7 %),  and  mining  and 
quarrying  (5 %)  together  accounted  for  68 %  of  outward  stocks  at 
end-2004. 

(44 %),  business  services 

four  activities 

that 

the 

For financial intermediation, 76 % of these outward stocks were held 
in  the  sub-sector  'other  financial  intermediation',  and  18 %  in 
'monetary intermediation'. 

Regarding  business  services,  France  and  Germany  together,  with 
EUR 192 bn, held a significant share (82 %) of the cumulated extra-
EU  outflows  directed  towards  that  sector  in  2004.  The  biggest 
recipient was Switzerland, with total extra-EU outflows reaching EUR 
29 bn,  of  which  EUR  10 bn  originated  in  France  and  EUR  5 bn  in 
Germany. 

The  Netherlands  invested  EUR  42 bn  in  petroleum,  chemical, 
rubber,  and  plastic  products,  accounting  for  29 %  of  extra-EU  FDI 
outward stocks in that sector. EUR 13 bn of that amount targeted the 
United States. The United Kingdom also had significant investments 
in  the  sector,  with  EUR  28 bn,  of  which  EUR  5 bn  was  invested  in 
the United States. 

(cid:4) 

Foreign direct investment  −  91 

FDI3.pdf   91

16-07-2007   17:01:34

 
 
 
 
 
 
 
 
 
           Chapter 4  
           EU FDI by economic activity  

In  mining  and  quarrying,  the  United  Kingdom  with  EUR  81 bn 
accounted for 79 % of extra-EU outward stocks in the sector. 

Chart 4.3 

Extra-EU FDI outward stocks (end-2004) by economic activity, 
EUR bn 

(EUR bn)

 1 000 

  900 

  800 

  700 

  600 

  500 

  400 

  300 

  200 

  100 

  0 

Financial intermediation

Rest of the sectors

Business Services

Petroleum, chemical,
rubber, plastic products
Mining and quarrying

Telecommunications

Trade & repairs

Vehicles & other transport
equipment
Food products

Metal & mechanical
products
Textiles & wood activities

Rest of the sectors includes: agriculture and fishing, electricity, gas and water, construction, 

private purchases & sales of real estate, and unallocated. 

Intensive investment in construction; decline in other 
business activities 

Combining  data  on  flows  and  stocks  for  a  given  period  gives  an 
indication  of  how  intensively  the  various  sectors  of  activity  are 
targeted  in  that  period.  Table  4.4  shows  that  direct  investments  in 
extra-EU  countries  in  construction,  textiles  and  wood  activities, 
computer activities, and mining and quarrying (the top four sectors) 
attracted  higher  flows  in  2004  relative  to  total  stocks  at  end-2004. 
Construction ranked first, with a ratio of 26.1 %, followed by textiles 
and wood activities with 24.2 %, computer activities with 18.3 %, and 
mining and quarrying with 16.7 %. 

The  situation  is  reversed  for  other  sectors,  such  as  other  business 
activities,  research  and  development,  real  estate,  renting  and 
business  activities,  and 
large 
disinvestments  in  2004.  Other  business  activities  recorded  the 
highest negative ratio at -9.9 %. 

food  products,  which 

faced 

92  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   92

16-07-2007   17:01:34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  EU FDI by economic activity 

     Chapter 4   

Table 4.4 

Extra-EU FDI outward stocks and flows, EUR mn 

 Top
 four

Construction
Textiles and wood activities
Computer activities
Mining and quarring

Stocks
(end-2004)

Flows
(2004)

 15 391 
 29 328 
 21 054 
 102 775 

 4 019 
 7 088 
 3 858 
 17 197 

 Bottom Other business activities
 four

Research and development
Real estate, renting and business activities
Food products

 205 360 
 3 422 
 257 351 
 49 750 

- 20 339 
-  235 
- 14 125 
-  482 

Flows/
Stocks 
(%)

26.1
24.2
18.3
16.7

-9.9
-6.9
-5.5
-1.0

TOTAL

2 048 346 

 136 388 

6.7  

(cid:4) 

Foreign direct investment  −  93 

FDI3.pdf   93

16-07-2007   17:01:34

 
 
 
           Chapter 4  
           EU FDI by economic activity  

2001-2004:  focus  on  services  for  EU  FDI  to  United 
States,  EFTA  and  other  partner  countries.  Focus  on 
manufacturing  for  FDI  to  Canada  and  on  other  sectors 
(agriculture  and 
fishing,  mining  and  quarrying, 
electricity,  gas  and  water,  and  construction)  for  FDI  to 
Japan 

As a whole, EU FDI outflows to extra-EU countries in 2004 displayed 
a  marked  preference  for  other  sectors 28,  which  accounted  for  48 % 
of  total  EU  outflows.  The  period  2001-04  was  dominated  by  the 
services  sector,  which  accounted  for  64 %  of  the  total,  with  other 
sectors  following  at  a  distance  and  representing  24 %  of  total  FDI 
outflows. Manufacturing took third place with 12 %. 

The shares of EU FDI outflows in manufacturing, services and other 
sectors  varied  significantly  from  one  partner  to  another  (see  Table 
4.5).  The  figures  show  that  throughout  the  period  2001-04  the 
services  sector  attracted  on  average  the  biggest  share  of  extra-EU 
FDI outflows in the United States, EFTA and other partner countries. 
In  Canada  manufacturing  drew  the  prime  share  of  extra-EU  FDI 
outflows,  whereas  in  Japan,  other  sectors  attracted  the  biggest 
share  of  extra-EU  outflows.  A  disinvestment  in  services  was 
observed in the latter two countries again for the period 2001-04. 

More  specifically,  services  in  the  United  States  attracted  a  high 
share of total EU FDI outflows in 2001 (70 %) but fell back to -46 % 
in  2004.  Regarding  the  four-year  period  average,  services  in  the 
United States attracted a relatively high share of total EU outflows of 
72 %. 

EU FDI outflows to the EFTA countries followed  a different pattern, 
with  the  services  sector  reaching  a  peak  of  121 %  in  2004  and 
maintaining  57 %  of  extra-EU  FDI  flows  as  an  average  over  the 
period  2001-04.  In  general  for  the  four  years,  the  EFTA  countries 
attracted  7 %  of  total  EU  FDI  outflows,  of  which  almost  73 %  was 
invested in Switzerland and the remaining 27 % went to Norway. 

Services  in  Canada  attracted  growing  shares  of  total  EU  FDI 
outflows, starting from -46 % in 2001 and reaching the peak position 
in 2004 with 210 %. For the four-year period average, though, extra-
EU 
for 
flows  were  characterised  by  a  strong  preference 
manufacturing. 

From 2001 until 2004 the share of services in total EU-outward flows 
to  Japan  followed  a  steadily  declining  trend.  2001  was  the  peak 
period, with services accounting for 94 % of total EU outward flows, 
and  2004  was  the  trough  year  with  3 %.  Regarding  the  four-year 
period  average,  the  share  of  services  was  -12 %,  whereas  that  of 
other sectors was 79 % (the largest EU outward investment in other 
sectors). 

28  Other  sectors  includes:  agriculture  and  fishing,  mining  and  quarrying, 
electricity,  gas  and  water,  construction,  private  purchases  &  sales  of  real 
estate, and unallocated. 

94  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   94

16-07-2007   17:01:34

 
 
 
 
 
 
                                                 
  EU FDI by economic activity 

     Chapter 4   

For  the  remaining  partner  countries,  extra-EU  FDI  flows  were 
characterised by a strong preference for services, with an average of 
65 % for the cumulated flows. 

Table 4.5 

EU-FDI outward flows29 to major partners, 2001-2004,30  31 
EUR mn 

2001

2002

2003

2004

2001-2004

USA

Japan

Canada

Extra-EU Manufacturing

Services
Other sectors
Total
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services

12%
64%
24%
697 580 
5%
72%
23%
 212 823 
31%
112%
-57%
46%
 8 801 
1%
33%
-12%
79%
 13 125 
2%
17%
57%
26%
 48 805 
7%
13%
65%
22%
 414 026 
59%  
*Other  partner  countries  is  the  difference  between  extra-EU  and  United  States,  Canada, 

14%
38%
48%
 136 388 
-1%
-46%
147%
 8 423 
6%
-55%
210%
-55%
- 2 619 
-2%
24%
3%
73%
 6 122 
4%
6%
121%
-27%
- 3 593 
-3%
13%
52%
36%
 128 055 
94%

15%
66%
19%
 291 584 
16%
70%
14%
 150 308 
52%
110%
-46%
37%
 4 641 
2%
22%
94%
-16%
- 8 775 
-3%
9%
48%
43%
 12 724 
4%
12%
69%
19%
 132 686 
46%

4%
89%
6%
133 897 
-655%
863%
-108%
 2 704 
2%
75%
40%
-15%
 1 399 
1%
38%
57%
5%
 10 193 
8%
7%
80%
13%
 25 752 
19%
18%
74%
8%
 93 849 
70%

11%
59%
30%
135 711 
6%
58%
36%
 51 388 
38%
41%
38%
20%
 5 380 
4%
16%
12%
72%
 5 585 
4%
40%
39%
21%
 13 922 
10%
5%
71%
24%
 59 436 
44%

*Other 
partner
countries Other sectors

Total
% of extra-EU

EFTA

Japan and EFTA.

29 Excluding reinvested earnings until 2001. Total outward FDI since 2002. 
30 The negative percentages in the table are due to disinvestments. 
31 Due to rounding, the sum of all shares does not always equal 100 %. 

(cid:4) 

Foreign direct investment  −  95 

FDI3.pdf   95

16-07-2007   17:01:35

 
 
 
 
                                                 
           Chapter 4  
           EU FDI by economic activity  

Inward  FDI  by  economic  activity:  services 

4.3. 
attracted extra-EU FDI inflows of EUR 34 bn in 2004 

EU FDI inflows from extra-EU countries amounted to EUR 53 bn  in 
2004, after dropping from EUR 123 bn in 2003. This drop was due to 
a  general  cutback  in  almost  all  of  the  economic  sectors  and 
particularly in services. 

Table 4.6 

Extra-EU FDI inflows* by economic activity, 2001–2004,  
EUR mn 

2001

2002

2003

2004

Mining and quarrying
Manufacturing
of which
   Food products
   Textiles & wood activities
   Petroleum,chemical,rubber,plastic produc
   Metal & mechanical products
   Vehicles & other transport equipment
Services
of which
   Trade and repairs
   Hotels and restaurants
   Transport
   Telecommunications
   Financial intermediation
   Business Services
   Other Services
**Rest of the sectors
Total

- 388
15 033

- 878
1 550
369
2 747
309
131 483

1 850
 641
1 718
 36
90 258
32 270
 4 710 
- 22 350 
 123 778 

2 992
20 703

1 778
10 221
1 161
4 213
2 261
96 671

2 894
- 405
-1 497
-12 469
84 699
23 591
-  142 
 6 201 
 126 567 

-1 037
17 633

3 306
5 561
9 041
245
-4 383
102 891

6 168
 345
 847
-6 151
79 326
21 199
 1 157 
 4 054 
 123 541 

-3 086
10 580

3 862
-5 763
5 797
1 007
2 652
34 292

8 029
- 452
2 943
2 431
27 534
-8 215
 2 022 
 11 286 
 53 072 

2001-2004
-1 519
63 949

8 068
11 569
16 368
8 212
839
365 337

18 941
 129
4 011
-16 153
281 817
68 845
 7 747 
-  809 
 426 958   

* Excluding reinvested earnings until 2001. Total EU inward FDI since 2002. 

**  Rest  of  the  sectors  includes:  agriculture  and  fishing,  electricity,  gas  and  water, 

construction, private purchases & sales of real estate, and unallocated.

Services  accounted  for  a  larger  share  of  inflows  than  of  outflows, 
from 106 % of the EU total in 2001 to 65 % of the EU total in 2004. 
The  share  of  services  in  extra-EU  inflows  reached  an  average  of 
almost  86 %  in  the  period  2001-04  (that  of  extra-EU  outflows  is 
64 %, see Section 4.2). 

Inflows  of  extra-EU  FDI  into  services  fell  steadily  over  the  whole 
period under examination, from 1.4 % in 2001 to 0.3 % of EU GDP in 
2004. 

96  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   96

16-07-2007   17:01:35

 
 
 
 
 
 
 
  EU FDI by economic activity 

     Chapter 4   

Chart 4.4 

EU  FDI  inflows*  from  extra-EU  countries  in  major  sectors, 
2001-2004 , % GDP 

% GDP

5%

4%

3%

2%

1%

0%

-1%

2001

2002

2003

2004

Services

Manufacturing

Other sectors

* Excluding reinvested earnings until 2001.Total inward FDI since 2002.

(cid:4) 

Foreign direct investment  −  97 

FDI3.pdf   97

16-07-2007   17:01:35

 
 
 
 
           Chapter 4  
           EU FDI by economic activity  

2004: extra-EU inflows focused on financial intermedia-
tion. 

Chart 4.5 

EU FDI inflows* 2004 by economic activity, EUR bn 

(EUR bn)

30

25

20

15

10

5

0

-5

-10

Financial intermediation

Rest of the sectors

Trade & repairs

Petroleum,chemical,rub
ber,plastic products
Food products

Vehicles & other
transport equipment
Telecommunications

Metal & mechanical
products
Mining & quarrying

Textiles & wood activities

Business Services

*Excluding reinvested earnings until 2001. Total inward FDI since 2002. 

Rest of the sectors includes: agriculture and fishing, electricity, gas and water, construction, 

private purchases & sales of real estate, and unallocated. 

Investments  from  extra-EU  countries  were  mostly  made  in  one 
economic  sector  but  some  other  sectors  also  stood  out.  Financial 
intermediation  was  the  first  sector  in  terms  of  volume  (52 %)  in  EU 
total  inward  FDI  flows  despite  a  massive  drop  of  65 %  (from  EUR 
79 bn in 2003 to EUR 28 bn in 2004). Luxembourg, with EUR 19 bn 
in  2004  (70 %  of  the  total),  was  the  top  destination  for  extra-EU 
investments placed in financial intermediation. It is worthwhile noting 
that EUR 16 bn of that amount invested in Luxembourg originated in 
the OFCs.  

Next in line came trade and repairs with 15 % of EU total inward FDI 
flows.  The  United  Kingdom  together  with  Germany  accounted  for 
71 % of total extra-EU inflows in this sector. 

Petroleum,  chemical,  rubber  and  plastic  products  followed  not  far 
behind  with  EUR 6 bn  and  made  up  11 %  of  total  extra-EU  inflows. 
Ireland,  with  EUR  2 bn,  and  the  Netherlands  and  the  United 
Kingdom, with almost EUR 1 bn each, were the main beneficiaries of 
the investments made by extra-EU countries in this sector. 

Extra-EU  inflows  in  business  services,  textiles  and  wood  activities, 
and  mining  and  quarrying  were  characterised  by  disinvestments  in 
2004. 

98  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   98

16-07-2007   17:01:35

 
 
 
 
 
 
 
 
 
 
  EU FDI by economic activity 

     Chapter 4   

2004: Extra-EU FDI inward stocks concentrated in two 
activity sectors representing 66 % 

Chart 4.6 

Extra-EU  FDI  inward  stocks  (end-2004)  by  economic  activity, 
EUR bn 

(EUR bn)

724

500

400

300

200

100

0

-100

-200

Financial
intermediation
Rest of the sectors

Business Services

Petroleum, chemical,
rubber, plastic products
Trade and repairs

Textiles and wood
activities
Food products

Metal and mechanical
products
Vehicles and other
transport equipment
Mining and quarrying

Telecommunications

Rest of the sectors includes: agriculture and fishing, electricity, gas and water, construction, 

private purchases & sales of real estate, and unallocated. 

EU FDI inward stocks amounted to EUR 1 581 bn at end-2004, 6 % 
up  on  the  2003  levels.  Chart  4.6  makes  it  clear  that  two  activities 
stood  out:  financial  intermediation  (46 %),  and  business  services 
(20 %)  comprised  66 %  of  inward  stocks  at  end-2004.  Next  in  line 
were  petroleum,  chemical,  rubber,  plastic  products  (7 %),  followed 
by trade and repairs (5 %). 

from 

For  financial  intermediation,  it  is  worth  pointing  out  that  84 %  of 
financial 
inward  stocks  came 
intermediation',  whereas 
'monetary 
intermediation'.  In  the  business  services  sector,  Germany,  which 
was  the  main  target,  represented  31 %  of  total  EU  FDI  inward 
stocks, with EUR 97 bn, and France (EUR 50 bn) came next having 
16 % of EU FDI inward stocks in this sector. 

the  sub-sector 

resulted 

'other 

from 

9 % 

Three Member States accounted for more than half of the extra-EU 
inward  stocks  in  petroleum,  chemical,  rubber,  plastic  products.  The 
Netherlands,  with  EUR  27 bn,  was  the  major  recipient  of  EU  FDI 
inward stocks at end-2004, representing 26 % of total EU FDI inward 
stocks, whereas France and the United Kingdom followed with EUR 
19 bn and EUR 15 bn respectively. 

The  United  Kingdom  held  the  first  place  for  trade  and  repairs, 
accounting  for  38 %  of  extra-EU  inward  stocks  in  this  sector. 
Germany  (26 %)  and  France  (15 %)  also  attracted  significant  FDI 

(cid:4) 

Foreign direct investment  −  99 

FDI3.pdf   99

16-07-2007   17:01:35

 
 
 
 
 
 
 
 
           Chapter 4  
           EU FDI by economic activity  

capital  from  outside  the  EU  with  EUR  21 bn  and  EUR  12 bn 
respectively. 

Taking a closer look at the ratio between 2004 FDI inflows and 2004 
inward  stocks,  it  is  easy  to  see  that  water  transport,  electricity,  gas 
and  water,  transport,  storage  and  communications,  and  research 
and  development  were  the  most  attractive  sectors  for  extra-EU 
investors.  In  contrast,  in  2004,  construction,  machinery,  computers, 
RTV 32  and  communication,  textiles  and  wood  activities,  and  mining 
and  quarrying  had  negative  rates  as  extra-EU  investors  withdrew 
FDI capital from those sectors. The construction sector recorded the 
highest negative ratio at -24.4 %. 

Table 4.7 

Extra-EU FDI inward stocks and inward flows, EUR mn 

 Top
 four

Water transport
Electricity, gas and water
Transport, storage and communications
Research and development

 Bottom Construction
 four

Machinery, computers, RTV & communications
Textiles and wood activities
Mining and quarrying

TOTAL

Stocks
(end-2004)

Flows
(2004)

 2 300 
 10 264 
 30 557 
 2 487 

 1 299 
 5 269 
 5 374 
  379 

 4 151 
 16 287 
 39 004 
 26 517 

- 1 014 
- 2 688 
- 5 763 
- 3 086 

Flows/
Stocks
(%)

56.5
51.3
17.6
15.2

-24.4
-16.5
-14.8
-11.6

1 580 532 

 53 072 

3.4  

2001-2004: focus on services for EU FDI from the United 
States, Canada, Japan, EFTA, and other partner 
countries 

EU  FDI  inflows  over  the  period  2001-04  were  characterised  by  the 
strong  preference  for  the  services  sector  shown  by  all  the  major 
partners.  This  prevalence  can  be  seen  in  the  fact  that  services 
accounted for 86 % of total FDI inflows, with manufacturing following 
at a distance and receiving only 15 % of total FDI inflows. The EFTA 
countries,  Canada  and  Japan  had  high  FDI  inflows  to  services  in 
2004 (more than 50 % each), whereas services received only 41 % 
of inflows from the United States. 

The manufacturing sector attracted high EU FDI inflows from Japan 
with  a  21 %  average  for  2001-04,  while  the  other  partner  countries 
came  next  with  an  average  of  17 %  for  cumulated  flows  over  the 
four-year period. In 2004, 48 % of FDI inflows from the United States 
targeted manufacturing activities, whereas EFTA invested 27 %. 

32 RTV=Radio and television. 

100  −  Foreign direct investment 

(cid:4)(cid:3)

FDI3.pdf   100

16-07-2007   17:01:35

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
  EU FDI by economic activity 

     Chapter 4   

Table 4.8 

EU-FDI  inward  flows 33  from  major  partners,  2001–2004,34 35 
– EUR mn 

2001

2002

2003

2004

Extra-EU Manufacturing

USA

Services
Other sectors
Total
Manufacturing
Services
Other sectors
Total
% of extra-EU
Canada Manufacturing

16%
76%
7%

12%
106%
-18%

14%
83%
2%
 123 778  126 567  123 541 
10%
84%
5%
 51 935 
42%
6%

20%
65%
15%
 53 072 
48%
41%
11%
 9 292 
18%
-5%
94% 119%
-14%
- 3 802 
-7%
10%
77%
13%
 7 513 
14%
27%
65%
8%
 16 418 
31%
3%
79%
18%
 23 651 
45%

0%
 12 699 
10%
32%
61%
7%
 4 002 
3%
12%
90%
-2%
 22 325 
18%
23%
76%
1%
 32 580 
26%

2001-2004
15%
86%
-1%
426 958 
13%
81%
6%
 202 018 
47%
11%
83%
5%
 18 741 
4%
21%
75%
4%
 27 834 
7%
16%
93%
-9%
 58 686 
14%
17%
93%
-10%
 119 679 
28%  

12%
85%
3%
 83 182 
67%
17%
88%
-6%
 5 825 
5%
18%
83%
-1%
 7 988 
6%
23%
206%
-129%
 4 377 
4%
7%
178%
-85%
 22 406 
18%

12%
78%
10%
 57 609 
46%
4%
78%
18%
 4 019 
3%
27%
73%
0%
 8 331 
7%
8%
95%
-4%
 15 566 
12%
25%
67%
8%
 41 042 
32%

Japan

EFTA

Services
Other sectors
Total
% of extra-EU
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services
Other sectors
Total
% of extra-EU
Manufacturing
Services

Total
% of extra-EU

*Other
partner
countries Other sectors

*Other  partner  countries  is  the  difference  between  extra-EU  and  United  States,  Canada, 

Japan and EFTA.

33 Excluding reinvested earnings until 2001. Total inward FDI since 2002. 
34 The negative percentages in the table are due to disinvestments. 
35 Due to rounding, the sum of all shares does not always equal 100 %. 

(cid:4) 

Foreign direct investment  −  101 

FDI3.pdf   101

16-07-2007   17:01:35

 
 
 
 
                                                 
FDI3.pdf   102

16-07-2007   17:01:36

(cid:3)

ANNEXES  

FDI3.pdf   103

16-07-2007   17:01:36

 
 
 
FDI3.pdf   104

16-07-2007   17:01:36

ANNEX 1 
Statistical tables 

FDI3.pdf   105

16-07-2007   17:01:36

 
  
 
 
Annexes 

Table 1 
Geographical breakdown of FDI flows in the reporting 
economy, EUR mn 
Reporter: European Union 

World
Intra-EU
Extra-EU
EFTA
United States
Canada
Japan

2001
 549 061
 403 192
 145 867
 11 954
 79 643
 5 632
 8 816

2002
 486 627
 360 059
 126 567
 15 566
 57 609
 4 019
8 331

2003
 355 390
 231 847
 123 541
 22 325
 51 935
 12 699
4 002

2004
 225 328
 172 255
 53 072
 16 418
 9 292
- 3 802
7 513

2005
 500 281
 406 133
 94 149
 19 965
 17 110
 7 979
 6 161  

Table 2 
Geographical breakdown of FDI flows abroad, EUR mn 
Reporter: European Union 

World
Intra-EU
Extra-EU
EFTA
United States
Canada
Japan

2001
 633 969
 327 828
 306 140
 9 768
 158 706
 5 784
- 8 875

2002
 496 095
 362 199
 133 897
 25 752
 2 704
 1 399
 10 193

2003
 406 399
 270 688
 135 711
 13 922
 51 388
 5 380
5 585

2004
 354 104
 217 714
 136 388
- 3 593
 8 423
- 2 619
6 122

2005
 598 988
 427 226
 171 757
 19 939
 29 493
 11 884
 10 933  

Table 3 
Geographical breakdown of FDI stocks in the reporting 
economy, EUR mn 
Reporter: European Union 

World
Intra-EU
Extra-EU
EFTA
United States
Canada
Japan

2004

2003

2002

2001

2005
3 862 428 4 000 899 4 454 940 4 801 894 5 486 920
2 566 832 2 735 619 2 970 364 3 221 358 3 742 097
1 295 598 1 265 279 1 484 575 1 580 532 1 744 823
:
 216 706
 769 166
 687 134
 74 847
 66 171
 89 500  
75 070

 256 441
 694 338
 62 187
81 852

 186 538
 659 920
 73 763
 62 910

 170 516
 704 815
 81 072
 60 067

: Missing or confidential data 

Table 4 

Geographical breakdown of FDI stocks abroad, EUR mn 
Reporter: European Union 

World
Intra-EU
Extra-EU
EFTA
United States
Canada
Japan

2004

2003

2002

2001

2005
4 763 230 4 754 959 5 150 330 5 428 052 6 259 034
2 745 843 2 850 118 3 139 259 3 379 707 3 878 733
2 017 386 1 904 845 2 011 069 2 048 346 2 380 303
 309 858
:
 855 638
 747 548
 97 781
 81 445
 78 534  
68 738

 292 151
 739 650
 74 751
76 088

 264 408
 760 153
 83 037
 52 025

 234 661
 915 251
 85 334
 36 340

: Missing or confidential data 

106  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   106

16-07-2007   17:01:36

 
 
  Annexes 

Table 5 

Geographical breakdown of FDI total income, EUR mn, 
Reporter: European Union 

Year
2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

2001
2002
2003
2004
2005

World

Intra-EU

Extra-EU

EFTA

United States

Canada

Japan

(cid:4) 

Credit
 214 115
 197 676
 220 416
 298 615
 358 139

 127 915
 111 904
 116 712
 148 189
 180 041

 86 198
 85 769
 103 704
 150 424
 178 097

 12 338
 16 204
 14 584
 18 664
 22 513

 28 342
 33 245
 31 994
 44 780
 54 830

 2 479
 3 098
 2 788
 4 030
 5 361

 1 084
 2 027
 2 820
 2 910
 3 602

Debit
 189 665
 183 918
 185 704
 244 588
 294 063

 106 482
 115 513
 125 566
 157 762
 184 549

 83 183
 68 407
 60 137
 86 827
 109 514

 20 401
 17 650
 15 365
 15 277
 18 403

 32 920
 33 393
 37 199
 50 359
 64 169

 1 078
 2 074
 2 185
 1 739
 2 115

 2 354
 3 830
 1 374
 2 554
 2 936

Net
 24 449
 13 756
 34 712
 54 025
 64 077

 21 432
- 3 611
- 8 855
- 9 571
- 4 508

 3 017
 17 360
 43 567
 63 599
 68 583

- 8 061
- 1 447
-  782
 3 386
 4 108

- 4 579
-  147
- 5 206
- 5 579
- 9 338

 1 403
 1 023
  603
 2 290
 3 247

- 1 271
- 1 804
 1 446
  354
  665  

Foreign direct investment  −  107 

FDI3.pdf   107

16-07-2007   17:01:36

 
 
Annexes 

Table 6 

Detailed geographical breakdown of 2005 FDI flows, EUR mn, 
Reporter: European Union 

Abroad

In the 
reporting
economy

 World 
     Europe
         Austria
         Belgium
         Luxembourg
         Germany
         Spain
         Finland
         France
         Greece
         Ireland
         Italy
         Netherlands
         Portugal
         Denmark
         United Kingdom
         Sweden
         Cyprus
         Czech Republic
         Hungary
         Malta
         Poland
         Slovenia
         Slovak Republic
         Bulgaria
         Romania
         Switzerland
         Iceland
         Liechtenstein
         Norway
         Estonia
         Lithuania
         Latvia
         Other European countries
             Albania
             Belarus
             Serbia and Montenegro
             Croatia
             Russia
             Turkey
             Ukraine
     Africa
         North Africa countries
             Egypt
             Morocco
         Other African countries
             Nigeria
             Republic of South Africa
     America
         North American countries
             Canada
             United States of America
         Central American countries
             Mexico
         South American countries
             Argentina
             Brazil
             Chile
             Colombia
             Uruguay
             Venezuela

108  −  Foreign Direct Investment 

 598 988
 487 847
 4 625
 24 433
 11 177
 32 306
 22 170
 3 739
 24 188
  533
 19 036
 26 455
 57 838
 5 427
 5 049
 156 720
 6 155
 2 699
 5 037
 11 053
 2 175
 2 509
  503
 1 174
 2 090
 3 957
 19 660
-  35
  76
  240
 2 086
-  6
  20
 40 685
  29
  57
 1 518
  951
 8 997
 3 252
 5 516
 17 403
  769
  787
  690
 16 633
 2 812
 9 234
 56 551
 41 393
 11 884
 29 493
 10 767
 2 512
 4 389
- 1 313
 5 490
  939
- 1 057
-  25
  945

 500 281
 446 922
 9 403
 13 235
 47 872
 31 068
 27 073
 1 123
 25 618
  93
 37 921
 24 971
 117 686
 1 650
  688
 39 058
 15 616
 1 958
-  252
 8 824
-  22
 1 667
  27
  462
  71
  128
 15 627
 1 406
  316
 2 617
  220
  88
  90
 20 819
-  4
  4
-  11
  116
 4 107
  302
  203
  632
  140
  106
  6
  493
-  345
-  78
 33 430
 25 095
 7 979
 17 110
 1 974
  798
 6 362
  449
 5 488
  30
  130
-  26

  240  
(cid:4)(cid:3)

FDI3.pdf   108

16-07-2007   17:01:36

 
     Asia
         Near and Middle East countries
             Israel
             Iran
             Gulf Arabian Countries
             Other Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             Indonesia
             India
             Japan
             Korea, Republic of (South Korea)
             Malaysia
             Philippines
             Singapore
             Thailand
             Taiwan
     Oceania and Polar regions
         Australia
         New Zealand
 African, Caribbean and Pacific countries (Lomé convention)
     African ACP countries
     Caribbean ACP countries
     Pacific ACP countries
 Non European International Organizations
 European Free Trade Association
 OECD countries
 Countries from Central and Eastern Europe
 North American Free Trade Association
 Latin America
 Countries for the Association of South-East Asian Nations
 Organization of Petroleum Exporting Countries
 Core Newly Industrializing Countries
 Asian NICs of the second wave of industrialization
 Latin American NICs of the second wave of industrialization
 Offshore financial centers
 French Franc zone
 Community of Independant States
 Maghrebian countries
 Countries from Machrek
 Mercado comun de los paises del cono sur
 EU-15
 EU-25 (2)
 Extra EU-15
 Extra EU-25
 Mediterranean countries in the Euro-Mediterranean Partnership
 Acceding Countries 
 Euro-zone
 EU member states not belonging to Euro-zone
 Extra Euro-zone
 Not allocated (1)

  Annexes 

Abroad

In the 
reporting
economy

 40 198
 3 395
  702
  37
 2 609
  44
 36 805
 5 736
 2 902
 3 942
 2 170
 10 933
 4 207
  696
  334
 1 082
  366
 2 910
- 5 877
- 6 682
  687
 18 916
 16 626
 2 183
  98
-  11
 19 939
 495 886
 12 360
 43 889
 7 127
 6 299
 9 202
 11 105
 1 399
 7 626
 26 458
  555
 16 063
  775
  821
 4 164
 399 981
 427 226
 199 006
 171 757
 5 547
 27 248
 232 047
 167 923
 366 937
 2 866

 8 628
 2 104
 1 152
  182
  513
  265
 6 523
  401
 1 071
  391
  220
 6 161
 1 201
-  41
  206
- 1 878
  49
  159
 5 967
 5 864
  124
-  158
  474
-  637
  5
  202
 19 965
 462 964
-  278
 25 886
 7 080
- 1 340
 1 751
  556
  212
 6 767
 17 609
  192
 2 754
  26
  462
 5 915
 393 074
 406 133
 107 212
 94 149
 1 941
 13 060
337 708
 55 368
 162 576

 4 702  

(1) Not allocated = World - Europe - Africa - America - Asia - Oceania and 
Polar regions. 
(2) The gap between outward and inward flows corresponds to an intra-EU 
asymetry. 

(cid:4) 

Foreign direct investment  −  109 

FDI3.pdf   109

16-07-2007   17:01:37

 
 
Annexes 

Table 7 

Detailed geographical breakdown of 2004 FDI flows, 
EUR mn, Reporter: European Union 

Abroad

In the reporting
economy

 World 
     Europe
         Austria
         Belgium
         Luxembourg
         Germany
         Spain
         Finland
         France
         Greece
         Ireland
         Italy
         Netherlands
         Portugal
         Denmark
         United Kingdom
         Sweden
         Cyprus
         Czech Republic
         Hungary
         Malta
         Poland
         Slovenia
         Slovak Republic
         Bulgaria
         Romania
         Switzerland
         Iceland
         Liechtenstein
         Norway
         Estonia
         Lithuania
         Latvia
         Other European countries
             Albania
             Belarus
             Serbia and Montenegro
             Croatia
             Russia
             Turkey
             Ukraine
     Africa
         North Africa countries
             Egypt
             Morocco
         Other African countries
             Nigeria
             Republic of South Africa
     America
         North American countries
             Canada
             United States of America
         Central American countries
             Mexico
         South American countries
             Argentina
             Brazil
             Chile
             Colombia
             Uruguay
             Venezuela

 354 104
 253 755
 4 045
- 8 569
 20 751
 13 568
 11 523
 2 151
 12 198
-  251
 12 056
- 13 228
 67 424
 6 107
- 1 698
 65 910
 9 211
  805
- 2 047
 7 625
 1 476
 6 360
  187
 1 304
  551
 3 089
- 11 296
-  89
  90
 7 704
  126
  201
  483
 39 633
  134
  1
  578
  645
 5 878
 1 131
  249
 13 185
 2 649
 1 131
  167
 10 534
  429
 5 962
 48 797
 5 812
- 2 619
 8 423
 35 320
 10 805
 7 661
- 1 166
 5 180
 1 976
  605
  192
 1 064

 225 328
 200 726
 3 305
 5 247
- 7 382
 24 757
 23 161
-  47
 14 216
  189
 8 572
 7 935
 32 095
 2 579
 6 959
 33 883
 6 793
  858
  497
 4 418
 2 764
  674
  55
  331
  36
  21
 15 562
 1 822
  23
-  982
  182
  44
  86
 12 047
  1
  6
  47
  43
  196
  170
  23
  942
  213
  41
  9
  732
  294
  120
 9 583
 5 493
- 3 802
 9 292
-  826
 1 180
 4 916
-  705
 4 014
  22
  187
  617

  98  

110  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   110

16-07-2007   17:01:37

 
     Asia
         Near and Middle East countries
             Israel
             Iran
             Gulf Arabian Countries
             Other Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             Indonesia
             India
             Japan
             Korea, Republic of (South Korea)
             Malaysia
             Philippines
             Singapore
             Thailand
             Taiwan
     Oceania and Polar regions
         Australia
         New Zealand
 African, Caribbean and Pacific countries (Lomé convention)
     African ACP countries
     Caribbean ACP countries
     Pacific ACP countries
 Non European International Organizations
 European Free Trade Association
 OECD countries
 Countries from Central and Eastern Europe
 North American Free Trade Association
 Latin America
 Countries for the Association of South-East Asian Nations
 Organization of Petroleum Exporting Countries
 Core Newly Industrializing Countries
 Asian NICs of the second wave of industrialization
 Latin American NICs of the second wave of industrialization
 Offshore financial centers
 French Franc zone
 Community of Independant States
 Maghrebian countries
 Countries from Machrek
 Mercado comun de los paises del cono sur
 EU-15
 EU-25 (2)
 Extra EU-15
 Extra EU-25
 Mediterranean countries in the Euro-Mediterranean Partnership
 Acceding Countries 
 Euro-zone
 EU member states not belonging to Euro-zone
 Extra Euro-zone
 Not allocated (1)

  Annexes 

Abroad

In the reporting
economy

 34 519
 2 029
  180
-  57
 1 191
  711
 32 489
 3 207
 11 033
  138
 1 452
 6 122
 1 790
 1 074
  431
 2 679
  349
 1 258
 1 856
 1 052
  746
 12 597
 10 526
 2 030
  28
-  7
- 3 593
 238 191
 9 364
 16 615
 19 293
 4 631
 3 675
 16 761
 1 856
 16 798
 64 045
  623
 9 297
 1 713
 1 161
 4 169
 201 183
 217 714
 152 921
 136 388
 4 182
 16 530
 127 766
 73 412
 226 338
 1 992

 9 632
- 6 300
-  223
  207
- 6 571
  286
 15 932
-  147
 4 748
  74
  1
 7 513
 1 278
  12
 1 823
  487
  16
-  68
 3 661
 3 720
-  69
 1 039
  737
  301
  4
  25
 16 418
 203 944
  308
 6 667
 5 449
 2 440
- 5 821
 6 439
 1 849
 4 515
 16 845
  70
  308
  203
  319
 3 919
 162 351
 172 255
 62 976
 53 072
  470
 9 905
 114 626
 47 730
 110 703

  784  

(1) Not allocated = World - Europe - Africa - America - Asia - Oceania and 
Polar regions. 
(2) The gap between outward and inward flows corresponds to an intra-EU 
asymetry. 

(cid:4) 

Foreign direct investment  −  111 

FDI3.pdf   111

16-07-2007   17:01:37

 
Annexes 

Table 8 

Detailed geographical breakdown of 2005 FDI income,  
EUR mn, Reporter: European Union 

Credit

Debit

Net 

 World 
     Europe
         Austria
         Belgium
         Luxembourg
         Germany
         Spain
         Finland
         France
         Greece
         Ireland
         Italy
         Netherlands
         Portugal
         Denmark
         United Kingdom
         Sweden
         Cyprus
         Czech Republic
         Hungary
         Malta
         Poland
         Slovenia
         Slovak Republic
         Bulgaria
         Romania
         Switzerland
         Iceland
         Liechtenstein
         Norway
         Estonia
         Lithuania
         Latvia
         Other European countries
             Albania
             Belarus
             Serbia and Montenegro
             Croatia
             Russia
             Turkey
             Ukraine
     Africa
         North Africa countries
             Egypt
             Morocco
         Other African countries
             Nigeria
             Republic of South Africa
     America
         North American countries
             Canada
             United States of America
         Central American countries
             Mexico
         South American countries
             Argentina
             Brazil
             Chile
             Colombia
             Uruguay
             Venezuela

112  −  Foreign Direct Investment 

 358 139
 215 140
 3 612
 10 319
 18 039
 17 186
 8 172
 3 453
 21 781
 1 255
 12 440
 7 204
 29 645
 4 100
 2 850
 19 477
 7 103
  643
 3 079
 3 265
  273
 4 078
  251
 1 089
  240
  699
 16 968
  7
  79
 5 457
  233
  158
  182
 12 585
  22
  19
  178
  353
 4 115
 1 323
  273
 15 182
 3 063

 1 327
  199
 12 117

 1 289
 6 570
 81 711
 60 196

 5 361
 54 830
 10 640

 2 994
 10 873

-  280
 6 282
 2 218
  858
  96
 1 402

 294 063
 208 333
 3 008
 9 414
 24 493
 22 722
 2 810
 4 192
 23 716
  26
 3 830
 8 139
 42 524
  605
 2 364
 25 497
 9 432
  503
  107
  669
  64
  149
  36
  88
  20
-  1
 16 110
  222
  312
 1 757
  127
  7
  11
 5 382
  1
  6
  17
  0
 2 354
  122
-  7
  495
  93

  37
  28
  401

  10
  216
 79 486
 66 288

 2 115
 64 169
 11 297

  326
 1 898

  61
 1 702
  22
  3
  28
  61

 64 077
 6 805
  604
  906
- 6 453
- 5 537
 5 362
-  739
- 1 937
 1 229
 8 611
-  936
- 12 880
 3 496
  483
- 6 020
- 2 330
  139
 2 971
 2 595
  209
 3 929
  215
 1 000
  218
  699
  857
-  215
-  234
 3 702
  107
  153
  171
 7 204
  21
  13
  161
  352
 1 763
 1 199
  279
 14 688
 2 971

 1 289
  171
 11 717

 1 277
 6 355
 2 224
- 6 094

 3 247
- 9 338
-  658

 2 668
 8 974

-  342
 4 581
 2 199
  855
  68

 1 341  

(cid:4)(cid:3)

FDI3.pdf   112

16-07-2007   17:01:37

     Asia
         Near and Middle East countries
             Israel
             Iran
             Gulf Arabian Countries
             Other Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             Indonesia
             India
             Japan
             Korea, Republic of (South Korea)
             Malaysia
             Philippines
             Singapore
             Thailand
             Taiwan
     Oceania and Polar regions
         Australia
         New Zealand
 African, Caribbean and Pacific countries (Lomé convention)
     African ACP countries
     Caribbean ACP countries
     Pacific ACP countries
 Non European International Organizations
 European Free Trade Association
 OECD countries
 Countries from Central and Eastern Europe
 North American Free Trade Association
 Latin America
 Countries for the Association of South-East Asian Nations
 Organization of Petroleum Exporting Countries
 Core Newly Industrializing Countries
 Asian NICs of the second wave of industrialization
 Latin American NICs of the second wave of industrialization
 Offshore financial centers
 French Franc zone
 Community of Independant States
 Maghrebian countries
 Countries from Machrek
 Mercado comun de los paises del cono sur
 EU-15
 EU-25 (2)
 Extra EU-15
 Extra EU-25
 Mediterranean countries in the Euro-Mediterranean Partnership
 Acceding Countries 
 Euro-zone
 EU member states not belonging to Euro-zone
 Extra Euro-zone
 Not allocated (1)

  Annexes 

Credit

Debit

 35 572
 3 699

  207
-  82
 2 539
 1 029
 31 873

 2 806
 8 898
 1 143
 1 186
 3 602
 2 422
 1 393
  258
 7 275
  798
  629
 6 896
 5 749
 1 096
 13 787
 12 115
 1 643
  29
  3
 22 513
 278 106
 1 671
 63 188
 14 273
 11 051
 7 070
 19 226
 2 450
 11 212
 28 519
 1 050
 5 656
 1 258
 1 576
 6 112
 166 789
 180 041
 191 351
 178 097
 4 365
 13 255
 137 349
 29 436
 220 790
 3 638

 3 701
 1 047

  123
  102
  392
  431
 2 651

  95
-  906
-  11
  116
 2 936
  156
-  27
  50
  255
  12
  49
 1 294
 1 259
  39
  787
  401
  377
  6
  8
 18 403
 273 015
  105
 66 610
 2 386
  310
  499
-  439
  38
 2 109
 13 945
  9
 2 236
  39
  452
 1 794
 182 782
 184 549
 111 283
 109 514
  736
 1 770
 145 486
 37 296
 148 580
  754

Net 
 31 870
 2 652

  85
-  184
 2 147
  598
 29 221

 2 712
 9 804
 1 153
 1 069
  665
 2 265
 1 421
  207
 7 021
  785
  580
 5 601
 4 488
 1 057
 12 999
 11 715
 1 264
  21
-  3
 4 108
 5 091
 1 566
- 3 422
 11 887
 10 741
 6 571
 19 666
 2 412
 9 102
 14 574
 1 041
 3 419
 1 219
 1 125
 4 318
- 15 994
- 4 508
 80 066
 68 583
 3 629
 11 482
- 8 137
- 7 864
 72 210

 2 889  

(1) Not allocated = World - Europe - Africa - America - Asia - Oceania and 
Polar regions. 
(2) The gap between outward and inward flows corresponds to an intra-EU 
asymetry. 

(cid:4) 

Foreign direct investment  −  113 

FDI3.pdf   113

16-07-2007   17:01:37

 
Annexes 

Table 9 

Detailed geographical breakdown of 2004 FDI income, 
EUR mn , Reporter: European Union 

 World 
     Europe
         Austria
         Belgium
         Luxembourg
         Germany
         Spain
         Finland
         France
         Greece
         Ireland
         Italy
         Netherlands
         Portugal
         Denmark
         United Kingdom
         Sweden
         Cyprus
         Czech Republic
         Hungary
         Malta
         Poland
         Slovenia
         Slovak Republic
         Bulgaria
         Romania
         Switzerland
         Iceland
         Liechtenstein
         Norway
         Estonia
         Lithuania
         Latvia
         Other European countries
             Albania
             Belarus
             Serbia and Montenegro
             Croatia
             Russia
             Turkey
             Ukraine
     Africa
         North Africa countries
             Egypt
             Morocco
         Other African countries
             Nigeria
             Republic of South Africa
     America
         North American countries
             Canada
             United States of America
         Central American countries
             Mexico
         South American countries
             Argentina
             Brazil
             Chile
             Colombia
             Uruguay
             Venezuela

Credit
 298 615
 179 794
 2 818
 11 726
 20 412
 13 883
 7 188
 2 984
 13 905
 2 050
 7 452
 4 287
 24 103
 2 290
 2 564
 14 907
 6 008
  642
 2 655
 2 960
  286
 3 320
  103
 1 200
  230
  551
 14 490
  5
  110
 4 058
  172
  102
  175
 12 939
  41
  14
  52
  416
 2 857
 1 191
  72
 10 736
 1 765
  903
  261
 8 971
  827
 5 416
 67 097
 48 816
 4 030
 44 780
 10 862
 3 471
 7 418
-  249
 3 785
 1 756
  744
  69
 1 017

Debit
 244 588
 176 434
 2 704
 10 085
 18 313
 20 897
  282
 3 925
 19 361
  106
 2 629
 2 934
 39 562
  522
 1 978
 23 682
 9 346
  399
  111
  216
  77
  75
  47
  57
  18
  6
 14 283
  29
  319
  646
  128
  1
  13
 3 395
  0
  7
  0
  4
  729
  191
  10
  284
  81
  36
  28
  203
  1
  131
 64 029
 52 112
 1 739
 50 359
 10 791
  431
 1 131
  52
  500
  18
  4
  38
  17

Net
 54 025
 3 359
  116
 1 639
 2 098
- 7 015
 6 907
-  941
- 5 454
 1 945
 4 823
 1 354
- 15 461
 1 766
  586
- 8 778
- 3 339
  244
 2 542
 2 745
  208
 3 246
  56
 1 143
  212
  545
  208
-  25
-  211
 3 412
  42
  101
  163
 9 544
  41
  8
  52
  413
 2 128
 1 000
  62
 10 452
 1 684
  865
  233
 8 768
  826
 5 285
 3 066
- 3 296
 2 290
- 5 579
  72
 3 040
 6 287
-  302
 3 286
 1 738
  739
  31

  999 

114  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   114

16-07-2007   17:01:37

     Asia
         Near and Middle East countries
             Israel
             Iran
             Gulf Arabian Countries
             Other Near and Middle East countries
         Other Asian countries
             China
             Hong Kong
             Indonesia
             India
             Japan
             Korea, Republic of (South Korea)
             Malaysia
             Philippines
             Singapore
             Thailand
             Taiwan
     Oceania and Polar regions
         Australia
         New Zealand
 African, Caribbean and Pacific countries (Lomé convention)
     African ACP countries
     Caribbean ACP countries
     Pacific ACP countries
 Non European International Organizations
 European Free Trade Association
 OECD countries
 Countries from Central and Eastern Europe
 North American Free Trade Association
 Latin America
 Countries for the Association of South-East Asian Nations
 Organization of Petroleum Exporting Countries
 Core Newly Industrializing Countries
 Asian NICs of the second wave of industrialization
 Latin American NICs of the second wave of industrialization
 Offshore financial centers
 French Franc zone
 Community of Independant States
 Maghrebian countries
 Countries from Machrek
 Mercado comun de los paises del cono sur
 EU-15
 EU-25 (2)
 Extra EU-15
 Extra EU-25
 Mediterranean countries in the Euro-Mediterranean Partnership
 Acceding Countries (CY, CZ, EE, HU, LV, LT, MT, PL, SK, SI)
 Euro-zone
 EU member states not belonging to Euro-zone
 Extra Euro-zone
 Not allocated (1)

  Annexes 

Credit

Debit

 30 601
 2 665
  67
  28
 1 914
  658
 27 936
 2 215
 8 268
 1 171
  923
 2 910
 2 387
 1 333
  192
 5 807
  832
  795
 7 726
 6 974
  724
 9 726
 8 956
  752
  17
  2
 18 664
 231 730
 1 420
 52 282
 11 173
 9 461
 5 004
 17 255
 2 358
 8 760
 28 592
  747
 3 446
  780
 1 326
 3 620
 136 578
 148 189
 162 039
 150 424
 3 367
 11 613
 113 094
 23 482
 185 521
 2 661

 2 906
  814
-  75
  87
  433
  369
 2 094
  55
-  983
  5
  19
 2 554
  176
-  25
  4
  190
  12
  38
 1 053
 1 126
-  89
  428
  196
  224
  9
  6
 15 277
 228 543
  121
 52 531
 1 223
  225
  386
-  581
-  11
  999
 12 780
  6
  743
  40
  402
  591
 156 633
 157 762
 87 956
 86 827
  562
 1 128
 121 625
 35 009
 122 965
-  118

Net
 27 693
 1 852
  141
-  59
 1 482
  288
 25 843
 2 160
 9 252
 1 166
  904
  354
 2 211
 1 360
  188
 5 615
  820
  758
 6 674
 5 848
  813
 9 299
 8 761
  529
  8
-  4
 3 386
 3 186
 1 298
-  249
 9 951
 9 237
 4 618
 17 836
 2 369
 7 763
 15 813
  741
 2 703
  740
  923
 3 030
- 20 056
- 9 571
 74 082
 63 599
 2 804
 10 485
- 8 528
- 11 528
 62 556

 2 781  

(1) Not allocated = World - Europe - Africa - America - Asia - Oceania and 
Polar regions. 
(2) The gap between outward and inward flows corresponds to an intra-EU 
asymetry. 

(cid:4) 

Foreign direct investment  −  115 

FDI3.pdf   115

16-07-2007   17:01:37

 
Annexes 

Table 10 

Detailed geographical breakdown of 2004 FDI stocks, EUR mn, 
Reporter: European Union 

Abroad

In the 
reporting
economy

 World 
     Europe
         Austria
       Belgium
         Luxembourg
       Germany
         Spain
       Finland
         France
       Greece
         Ireland
       Italy
         Netherlands
       Portugal
         Denmark
       United Kingdom
         Sweden
       Cyprus
         Czech Republic
       Hungary
         Malta
       Poland
         Slovenia
       Slovak Republic
         Bulgaria
       Romania
         Switzerland
       Iceland
         Liechtenstein
       Norway
         Estonia
       Lithuania
         Latvia
     Other European countries
       Albania
          Belarus
       Serbia and Montenegro
         Croatia
       Russia
          Turkey
       Ukraine
     Africa
         North Africa countries
        Egypt
           Morocco
       Other African countries
           Nigeria
        Republic of South Africa
     America
         North American countries
        Canada
           United States of America
      Central American countries
           Mexico
      South American countries
            Argentina
         Brazil
            Chile
         Colombia
            Uruguay
         Venezuela

5 428 052
3 780 260
 50 159
 263 521
 399 220
 285 323
 249 584
 34 717
 325 849
 9 645
 182 131
 132 191
 535 238
 36 072
 45 779
 564 293
 96 889
 6 207
 34 957
 41 111
 4 669
 58 119
 2 855
 12 400
 3 683
 9 155
 247 351
  807
 1 247
 42 743
 2 756
 4 052
 1 949
 108 402
  408
  236
 1 716
 5 684
 20 983
 13 301
 1 682
 91 458
 22 016
 6 893
 9 366
 69 443
 12 161
 37 415
1 153 872
 801 329
 74 751
 739 650
 210 169
 38 594
 142 375
 30 599
 70 768
 16 031
 6 723
 2 116
 5 630

4 801 894
3 536 984
 39 469
 213 923
 429 550
 304 251
 22 767
 51 215
 297 070
 2 248
 69 105
 114 992
 573 619
 15 011
 41 846
 913 436
 110 818
 6 016
 1 820
 5 850
 3 860
 1 838
  488
  806
  299
  81
 220 567
 2 817
 4 947
 28 109
  711
  179
  298
 59 185
  20
  88
  320
  375
 5 558
 2 567
  162
 11 533
 2 803
  445
  580
 8 729
 2 397
 4 281
1 045 235
 817 615
 62 187
 694 338
 215 558
 7 971
 12 060
 2 129
 3 109
 1 678
  598
  686

 1 452  

116  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   116

16-07-2007   17:01:38

 
     Asia
         Near and Middle East countries
         Israel
            Iran
         Gulf Arabian Countries
       Other Near and Middle East countries
       Other Asian countries
             China
          Hong Kong
             Indonesia
          India
             Japan
          Korea, Republic of (South Korea)
             Malaysia
          Philippines
             Singapore
          Thailand
             Taiwan
     Oceania and Polar regions
            Australia
         New Zealand
 African, Caribbean and Pacific countries (Lomé convention)
     African ACP countries
     Caribbean ACP countries
     Pacific ACP countries
 Non European International Organizations
 European Free Trade Association
 OECD countries
 Countries from Central and Eastern Europe
 North American Free Trade Association
 Latin America
 Countries for the Association of South-East Asian Nations
 Organization of Petroleum Exporting Countries
 Core Newly Industrializing Countries
 Asian NICs of the second wave of industrialization
 Latin American NICs of the second wave of industrialization
 Offshore financial centers
 French Franc zone
 Community of Independant States
 Maghrebian countries
 Countries from Machrek
 Mercado comun de los paises del cono sur
 EU-15
 EU-25 (2)
 Extra EU-15
 Extra EU-25
 Mediterranean countries in the Euro-Mediterranean Partnership
 Acceding Countries 
 Euro-zone
 EU member states not belonging to Euro-zone
 Extra Euro-zone
Not allocated (1)

  Annexes 

Abroad

In the 
reporting
economy

 315 806
 19 343
 2 490
 3 033
 10 374
 3 445
 296 464
 21 278
 85 559
 6 567
 9 713
 76 088
 19 423
 7 367
 3 727
 42 781
 7 453
 6 139
 59 901
 54 078
 5 391
 84 843
 69 413
 15 102
  328
- 8 015
 292 151
4 669 398
 22 916
 852 998
 188 660
 69 767
 34 526
 153 902
 18 550
 155 993
 371 621
 6 357
 29 333
 14 030
 8 791
 104 264
3 210 631
3 379 707
2 217 421
2 048 346
 38 611
 169 076
2 503 651
 706 978
2 924 401
 34 770

 147 948
 17 061
 4 042
 1 908
 8 871
 2 240
 130 887
 1 692
 13 148
  364
 1 224
 81 852
 4 793
 1 552
 1 015
 20 678
  435
  781
 27 868
 27 164
  501
 16 386
 8 718
 7 571
  97
- 1 114
 256 441
4 342 678
 1 603
 764 497
 25 541
 24 893
 13 194
 39 399
 3 002
 14 887
 337 118
 1 060
 6 542
 1 510
 2 335
 7 349
3 199 496
3 221 358
1 602 393
1 580 532
 10 454
 21 864
2 133 221
1 066 275
2 668 667

 33 438  

(cid:4) 

Foreign direct investment  −  117 

FDI3.pdf   117

16-07-2007   17:01:38

 
 
A
T
F
E

8
1
4
6
1

3
4
4
6
1

2
0
8
3
-

1
0
8
3
-

3
1
5
7

5
1
5
7

a
d
a
n
a
C

n
a
p
a
J

7
2

8
7
1

1
4
6

8
9
4
4

4
4
7
2

6
2
7
1

5
2
5
1

8
9
3

4
2
8

7
3
1

0
4
1

9
5

-

-

7
1

9
1
7

8
8
1

1
3
2

8
2
3

0
6
1

5
7

5
9

-

5
1

1
1

6
2
2

8
1
1

-

-

0
2
6
0
1

7
2
5
4
-

9
7

7
5

-

3
2
3

5
4

4
5

4
3

1
6

0

1
6

9
3
4
6

0

3
4
5
3

0
1
9
3

6
0
1

7
4
2

7
0
4

3

0

3

6
3

4
2

2
1

5
1

6
0
4

4
7
4

-

1
2
4
6
-

9
6
3

-

7
2
0
6
-

5
2
9
1

1

2
3
4

5
6
2

9
2
4
3

8
9
1
1

3
2

-

1
2
9

5
2

-

2
2

1

-

3
2
2

-

8
2

1
2

4
4
7

0
5
2

6
2

4
6
2

9
5
2

6
3

-

4
3
1

0
2

-

2
1
4

3
2

4
8
7
5

8
6
5
1

2

2
4

4
2

1

7
4

2
4

5

5
3

-

4
6
7
3

3
2
3

8
7
1
3

1
6
2

0
4

0

0
1

9
8
1

7
4
1

3
0
5

1

-

1
5

A
S
U

2
9
2
9

6
2
2
9

0
7
4
4

7
3
9
3

-

8
1

8
3
0
1

2
6
8
3

0
3
0
4

4
6
3

2
4
2

0
6
8

-

-

-

4
1
3
1

2
5
2

-

1
0
8
3

2
4
9
3

7
1
2

8
6

4
1
8

6
4
1

1
1
6
2

-

1
6
3
5

-

8
8
2

-

1
7
0
5

-

1
1
0
4

7
9
3
3

2
6
5
7

7
6
1

6
1
7

4
2
1

-

7
9
1
1

-

0
6
5

-

9
7
7
3

8
7
2
2

-

6
6

0
9

2
7
0
3
5

3
6
5
2
5

6
8
0
3
-

0
8
5
0
1

2
6
8
3

3
6
7
5
-

7
9
7
5

3
3
2
7

7
0
0
1

2
5
6
2

9
6
2
5

8
8
6
2
-

4
1
0
1
-

2
9
2
4
3

9
2
0
8

2
5
4

-

4
7
3
5

4
5
1

3
4
2

9
9
2
1

2
3
1
2

0
0
3

-

1
3
4
2

0
1
9
6

4
3
5
7
2

4
2
9
4
2

9
7
6
6
-

6
3
5
1

7
1
8

9
7
3

5
5
2
2
7
1

5
9
4
4
6
1

9
9
6

-

7
3
3
6

6
7
9
7
3

3
2
3
4

8
6
6
2

4
3
9
8

7
1
6
6

7
1
2
5

8
6
0
2

2
6
7
4

6
2
2
4

4
3
5

8
2
3
5
2
2

4
6
0
7
1
2

0
1
6

-

1
5
2
3

5
8
1
8

6
5
5
8
4

6
9
0
3
-

2
3
7
4
1

2
5
8
3
1

7
2
2
6

1
2
6

-

6
1
4
7

6
9
4
9

7
7
4

-

A
T
F
E

3
9
5
3
-

3
3
6
3
-

4

1
0
2

6
0
2

2
9
3

2
1

-

9
0
3

3
6
3

7
7
1

4
7
2

6
1
1

7
1

1
1

-

-

-

-

-

9
1
6
2
-

4
2
6
2
-

5

9
0
9

9
3
4
1

5
8

9
4
1

9
3
3

1
4

-

9
3
2

7
4

7
7
2

7
9
1

7
3

-

-

2
4
5
7
0
1

3
4
8
1
4
1

4
5
3
4
-

9
0
5
5
-

9
2
2

9
2
5

2
4
7
4

4
5
3

2
9
6

4
5
7

-

0
3
1
4

7
5
4
1

5
7
6
2

2
4
5
1
7

5
7
3
6
2

2
2
6
2
3

7
9
6
8
2

0
5
9
4

0
8
2
1

1
5
6
2

6
0
5

6
0
6

7
9
9

2
7

1
6
2
8

9
1
1
0
1

3
6
2
6

8
5
1
1

5
0
1
5

8
7
0
9
9

5
8
2
3
3

3
4
5
7
5

3
2
0
2
2

1
8
4
6

9
9
0
2

2
3
0
3

3
4
3
0
1

4
8
2
2

9
9
9
4
1

5
6
2
8

9
1
1

9

0
2

1
1

4
2

1

4
8

5
1

9
9

-

-

-

0
1

4
0
1

4

1
6

8
5
5
4
-

0
5
4
3
-

2
3
2
1
-

8
3

6
2
1

7
4
4

-

0
3

3

0
1

1
1

5

-

6
1

1
2
4
4
-

2
8
3

2
5
8

-

9
2
9
4
-

5
3

0
6

9
4

-

8
8

5
1
7

0
4

6

0
5

4
6
7

3
7
1

-

3
0
9

-

1

9
2

2
2
1
6

1
2
1
6

6

-

4
2

-

5
8
4
1

7
8
6

9
9
5

2

-

4
1

4
7
6

3

4

2
7
1

3
8
1

3

-

0

1

4
6

8
9
3

-

4
7
4

3
6
1

7
3
6

-

-

4

-

4
6
2
3

0
2
2
3

1
2
8
2

-

7
3

3
6

2

-

-

2

2
5

-

6
2
4
4

3
9
7
2

-

8
0
5

1
8
4

2
3
4
6

2
0
8
1

9
7
5
8

1
6
7
7

4
1
7
9
-

5
5
0
0
2

5
1

A
S
U

3
2
4
8

0
4
2
8

9
5

-

9
3
9

-

4
9
5
1
-

5
0
6
3

0
9
6
1
-

5
0
8

9
4

-

1
7
5

4
0
3
1
-

0
3
0
2
-

9
2
6

2
6
8
3
-

8
5
5
4
-

1
3
2

-

9
2
9
2
-

9
6
1

5
4

4
0
4

3
5
2
3
-

5
0
4

-

7
4
8
2
-

1
7
5
2
2

8
6
5
7
1

1
7
3
3

8
8
3
6
3
1

8
8
5
5
3
1

7

7
9
1
7
1

2
2
9
8
1

2
8
4

-

8
8
0
7

7
5
6
9

7
2
9
7

3
1
3
2

8
2
0
1

3
9
9

5
6
3

-

9
1
0
4

4
6
4

-

3
7
4
2
5

4
5

3
2
4

7
3
4
2

2
4
5
1

9
6
3

4
9

-

6
7
4
4
-

5
8
3
4

1
7
5
3
6

3
5
7
5
2

1
5
8
2
3

8
5
1

4
0
5

0
0
3

9
8
2
2

8
5
8
3

5
3
2

-

0
6
1
9
1
-

5
2
1
4
1
-

7
0
1
0
2
-

9
3
3
0
2
-

4
5
9
7
4

3
8
1

2
5
4

3
4
1
5
1

0
0
8

3
8
9

4
3
3
3
4

9
3
9

4
5
4

9
4
1
9
1

-

4
1
7
7
1
2

6
7
7
6
1
2

4
0
1
4
5
3

3
6
3
2
5
3

9
1
3

-

5
0
6
2

-

6
5
4
4
5

6
3
8
1
1

6
3
2
1

-

5
4
8
8
1

0
1
0
7
1

8
9
8

1
1
8
4

0
4
1
1

0
5
8
1

6
9
3
1

1
1
3

-

2
9
5
4
1

1
8
3
3
7

1
5
3
1
1

2
5
8
5

0
0
5
8
2

7
3
9
4
2

5
1
2
3

9
3
8
5

6
3
1
2

4
8
4
1

9
1
4
5

5
9
9
7
1

5
4
1
1
8
1

3
3
5
7
1

6
2
6
3
3
2

4
7
8

2
8
3

8
2
3

7
9
5
5
1

1
0
6
2

-

9
3
6
5
1

0
6
5
2

-

8
9
1
8
1

6
1
5
1
9

2
1
0
6
2

2
0
1
5
5

7
0
7
4
5

9
5
9
4

7
2
6

1
8
4

7
2
9

0
5
7

8
3
0
8
1

0
6
0
1
-

1
5
7

6
4
5
5
1

7
3
0
7
-

4
8
5
2
2

5
8
0
5
5
1

5
6
7
1
5

9
4
9
7
8

4
8
5
0
4

8
4
2

7
4
2
7

5
8
4
4

4
1
6
7
2

6
3
4
1

4
7
1
4
2

9
3
7
1

s
t
c
u
d
o
r
p
c
i
t
s
a
p
,
r
e
b
b
u
r
,
l

l

i

a
c
m
e
h
c
,
m
u
e
o
r
t
e
p

l

s
e

i
t
i
v
i
t
c
a
d
o
o
w
&
s
e

l
i
t
x
e
t

l

a
t
o
T

l

a
t
o
T

n
o

i
t

i

a
c
n
u
m
m
o
c

,

V
T
R

t

,
s
r
e
u
p
m
o
c

i

,
y
r
e
n
h
c
a
m

l

a
t
o
T

s
t
c
u
d
o
r
p

l

i

s
a
c
m
e
h
c
&
s
a
c
m
e
h
c

i

l

f
o
e
r
u
t
c
a
f
u
n
a
M

s
t
c
u
d
o
r
p

l

i

a
c
n
a
h
c
e
m
d
n
a

l

a
t
e
m

l

a
t
o
T

t

n
e
m
p
u
q
e

i

t
r
o
p
s
n
a
r
t

r
e
h
t
o
&
s
e
c
h
e
v

l

i

l

a
t
o
T

I

I

N
O
T
A
C
N
U
M
M
O
C
D
N
A
S
T
R
O
P
S
N
A
R
T

R
E
T
A
W
D
N
A
S
A
G

,

I

I

Y
T
C
R
T
C
E
L
E

S
T
N
A
R
U
A
T
S
E
R
D
N
A
S
L
E
T
O
H

I

S
R
A
P
E
R
D
N
A
E
D
A
R
T

I

S
E
C
V
R
E
S
L
A
T
O
T

I

N
O
T
C
U
R
T
S
N
O
C

t
r
o
p
s
n
a
r
t

r
e
t
a
W

t
r
o
p
s
n
a
r
t
d
n
a
L

t
r
o
p
s
n
a
r
t

r
i

A

s
n
o

i
t

i

a
c
n
u
m
m
o
c
e
e
t
d
n
a
t
s
o
P

l

I

I

I

I

S
E
T
V
T
C
A
S
S
E
N
S
U
B
&
E
T
A
T
S
E
L
A
E
R

s
e
i
t
i
v
i
t
c
a
e
t
a
t
s
e

l

a
e
R

s
e
i
t
i
v
i
t
c
a
r
e
t
u
p
m
o
C

t

l

n
e
m
p
o
e
v
e
d
d
n
a
h
c
r
a
e
s
e
R

s
e

i
t
i
v
i
t
c
a

s
s
e
n
s
u
b

i

r
e
h
t
O

I

S
E
C
V
R
E
S
R
E
H
T
O

I

I

N
O
T
A
D
E
M
R
E
T
N

I

I

L
A
C
N
A
N
F

I

s
e

i
t
i
v
i
t
c
a

r
e
i
r
u
o
c
d
n
a
t
s
o
P

i

s
n
o
i
t
a
c
n
u
m
m
o
c
e
e
T

l

i

n
o
i
t
a
d
e
m
r
e
t
n

i

y
r
a
t
e
n
o
M

n
o

i
t

i

a
d
e
m
r
e
t
n

i

l

i

a
c
n
a
n
i
f

r
e
h
t
O

I

I

G
N
H
S
F
D
N
A
E
R
U
T
L
U
C
R
G
A

I

I

G
N
Y
R
R
A
U
Q
D
N
A
G
N
N
M

I

I

I

G
N
R
U
T
C
A
F
U
N
A
M

s
t
c
u
d
o
r
p
d
o
o
F

L
A
T
O
T
-
B
U
S

L
A
T
O
T

t

e
a
t
s
e

l

a
e
r

f

o

l

s
e
a
s
&
s
e
s
a
h
c
r
u
p
e
t
a
v
i
r

P

d
e
t
a
c
o

l
l

a
t
o
N

U
E
a
r
t
x
E

U
E
-
a
r
t
n

I

d
l
r
o
W

a
d
a
n
a
C

n
a
p
a
J

U
E
a
r
t
x
E

U
E
-
a
r
t
n

I

d
l
r
o
W

y
m
o
n
o
c
e
g
n
i
t
r
o
p
e
r
e
h
t
n

I

d
a
o
r
b
A

n
m
R
U
E

,

n
o
i
n
U
n
a
e
p
o
r
u
E

:
r
e
t
r
o
p
e
R
–

4
0
0
2
n
i

y
t
i
v
i
t
c
a

c
i
m
o
n
o
c
e

y
b
s
w
o
l
f

I
D
F
:
1
1

e
l

b
a
  T

:

8
3
1
0
7
1

:

7
0
0
2
-
7
0
-
6
1

8
1
1

.

f
d
p
3
D
F

I

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
y
m
o
n
o
c
e
g
n
i
t
r
o
p
e
r
e
h
t
n

I

a
d
a
n
a
C

n
a
p
a
J

A
S
U

U
E
a
r
t
x
E

U
E
-
a
r
t
n

I

d
l
r
o
W

a
d
a
n
a
C

n
a
p
a
J

A
T
F
E

5
2
3
2
2

6
1
4
2
2

1
3

1
8
5

-

5
3
6
2

7
0
6
1

7
1

-

3
9
9
1

3
0
3
1

9
2
1
1

8
5
0
1

0
8
1

2
1
5

9
5

-

-

7
0
3
1

8
2
0
0
2

2
4

0
3
5

0
1
4

7
9

1
3

:

:

9
9

-

8
3
5

7
5
5
0
1

4
2
1
2

6
4
5
8

0
4
6
7

1
8
1

-

6
8

9
1

1
4

-

8
9
6
7

9
6
2

1
9
-

-

8
2

4
3

2
2
7

6
8

0
4

1
3
1

0
4
1

8
8

1
3
2

7
6
2

4
5

4
2

-

-

9
9
6
2
1

9
9
6
2
1

7
9
5

0
2

-

4
1
9
1
1

9

5

5
1

7

:

:

1

-

-

-

5
3
5

7
2

-

1
3
5

-

7
0
0
1

-

5
1
8
1
1

0

7
1

1
4
2

7
4

3
2

0

-

3
6
5
1
1

2
0
0
4

2
0
0
4

7
5

3
1

-

6
8
2
1

6
3
2

8
1

7
4
1

3
6

0
9
1

6
7
1

9
9
1

4
6

3
4

-

9
2
4
2

5
2
4
1

9

4
6

8

-

4
1

7

:

:

3
1

4
1

9
9
6

6
1

5
7
5

6
3
2

3
1
1

1

1

3
2
1

1

-

2
5
3

0

5
3
9
1
5

0
5
7
1
5

3
3
0
1

9
9
1

-

2
8
3
5

8
3
2
1

2
1
5
1

7
1
0
4

8
7
8
3

9
3
0
1

1
4
3
1

1
4
9
3

7
8
0
1

0
0
6

-

-

0
0
2

1
1
5
2

8
3
7
3
4

1
4
5
3
2
1

7
3
5
2
2
1

5
3
9

7
3
0
1

-

3
3
6
7
1

6
0
3
3

1
6
5
5

1
4
0
9

6
8
7
4

5
4
2

6
2
9

0
1
1

2
8
4

-

3
8
3
4

-

5
4
3

8
6
1
6

4
5
7
1

-

4
0
3
5

-

:

:

9
9

-

9
0
1

9
9
1

8
0
2

2
3
9
1

-

4
7
5
6
3

8
6
7
3

9
6
9
6
2

1
9
6
5

8
4

5
6

5
8
2

1
0
8
5

0
2
5

5
8
1

7
8
2
2

:

:

0
9
5

0
7
1

8
5
2

8
1
0
1

1
5
1
6

-

6
2
3
9
7

7
8
5
7

3
8
4
6
6

0
9
6
1
2

3
6

1
9
4

5
7
2
1

7
2
1
0
2

1
7
6

4
4
7
1

4
0
0
1

4
6
0
1

8
9
4
2

-

-

0
1
7
8
3

8
0
4

8
3
1
4

8
8
6
5
1

7
9
3
3
1

4
9
7
9

2
1
8
2

3
5
0
9

4
4
8
1

-

9
1
7

:

:

7
3
9

2
7
3
7

9
6
1
5
1

8
6

4
2

-

5
7
2

-

9
1
3

-

7
8
3
2
1

8
8
6
2
9

4
8
7
6

8
7
2
9
7

7
0
0
4
6

0
6
2
4

7
7
8

2
9
8
4

1
9
7
2
5

8
0
2
4

3
3
2
5

-

0
8
7
7

1
9
8
2
0
1

8
7
3
4
8
1

9
2
1

-

8
3
5
3

-

2
4
3
6
5

3
4
4
7

9
6
9
5

0
3
7
4
2

3
8
1
8
1

0
4
0
0
1

5
3
7
3

8
2
2
6

-

4
4
9
8

3
0
2
1

0
4
5
3
1

0
7
2
7
8
2

:

:

0
8
2
1

3
6
8
9

1
2
5

4
9
1

9
1

-

6
9
6

6
3
2
6

1
1
0
2
7
1

2
7
3
4
1

3
6
7
5
4
1

6
9
6
5
8

8
4
7
4

2
5
1
2

4
5
9
4

9
7
8
4

5
1
9
2
7

7
8
4
3

-

3
8
7
8

7
4
8
1
3
2

8
6
0
4
2
2

0
9
3
5
5
3

7
0
6
6
4
3

A
T
F
E

2
2
9
3
1

5
1
8
3
1

9
1

1
6
0
2

6
9
5
5

1
2
3

5
6
2

-

-

1
2
6
2

5
3
6
2

8
4

4
3
5
1

3
6
1
2

7
1
1

-

0
5

7
2
4
5

0
2
0
2

4
1

6
3
1

7
3

9

3

:

:

-

1
3

8
6
1

0
3
7
1

3
9
6

4
8
2
1

5
7
3
1

1
7

3
7

6
2

3
5
1

5
8
7

7
0
1

4
0
2
1

0
8
3
5

7
7
3
5

2

6
3
5

9
2
2
2

0
8
3
1

7
3

1
3
7

4
7
7

5
7
7

7
1

-

0
9
7

8
7
1

2
0
1

-

3
5
0
2

1
7
1

5
8
1

-

7
7

1
2

3

2

:

:

-

9
3

2
2

6
7
6

7
5
1

6
3
5

-

5
4

7
8
2

8
9
2

6
4
6

2
4

8
7
2

3

0
7
2
1

5
8
5
5

5
8
5
5

0

5
2

6
8
8

7
9

5
3

6
9
3

3
6
3

2
3

7
5
2

6
0
8

3

7

-

-

0
9
6

3

6
5

5
8

6

3

0

:

:

8

2
5

-

7
4

0
1
5
2

7
5
5
1

6
8
9
1
-

0

5
4

6
2

-

A
S
U

8
8
3
1
5

2
9
2
1
5

3
6

3
3
4
4

3
1
9
2

9
1
5

8
5
4

-

2
0
0
5

3
8
9
1

3
5
8

-

2
2
6
1
-

3
3
2
3
-

6
7
0
1
-

8
7
1

3
7
6
3

9
2
0
1

2
8
9
9
2

5
9
3

-

9
4
7
1
-

:

:

7
6

2
6

5
6
2

-

2
0
7
1
-

1
0
4
0
3

1
7
8
4

4
3
6
3
2

5
5
6
3
-

9
1
3

6
7
0
3

0
0
1

-

d
a
o
r
b
A

3
5
9
1
-

4
1
9
6
-

1

1
2

3
9
9
3

6
9

6
8
2

4
9
7
4
1

U
E
a
r
t
x
E

U
E
-
a
r
t
n

I

d
l
r
o
W

1
1
7
5
3
1

7
7
2
5
3
1

5
3
1

0
0
2
4
1

2
7
4
4
1

9
4
1
4

6
1
5
3

-

1
0
5
7

1
6
1
4

7
9
5
1

1
9
1

6
4

-

6
7
7

2
7
8

8
8
6
0
7
2

7
9
9
9
6
2

9
9
3
6
0
4

4
7
2
5
0
4

5
1
2

9
9
2
4

7
6
3
4
2

0
3

-

2
5
1
1

2
5
9
1
1

6
1
4
3
1

4
6
5
6

1
7
6
3

-

7
5
8

-

7
5
2
0
1

7
5
5
1

0
5
3

8
9
4
8
1

8
3
8
8
3

7
1
1
4

5
6
3
2

-

4
5
4
9
1

9
7
5
7
1

9
5
1
8

9
7
4
3

-

3
0
9

-

4
3
0
1
1

7
2
4
2

6
1
3
0
8

3
7
0
4
4
2

2
9
3
4
2
3

8
6
7
7

4
1
3
1

8
4
7
1

9
0
5

-

5
3

-

7
1
1

:

:

9
1
9
1

7
2
4

-

8
4
4
2
6

2
6
9
8

7
7
6
9
4

1
7
3
5

0
3
8

9
5
4
3

6
6
8

1
1
2

5
3
4

1
7
6
1

7
0
5
4
2

1
3
0
1

2
5
3
1
2

7
1
5
5

-

5
5
3
1

:

:

6
2
3

1
0
3

1
8
9
1

7
5
7
5

-

3
4
3
9
5
1

1
2
0
4
1

0
5
7
4
4
1

6
0
0
5

5
2
0
8
6

7
2
2

7
9
4
3

1
4
1
9
5

9
5
1

-

2
9
6

1
7
7
4
1

-

:

:

4
4
8

9
8
2

8
1
4

5
4
3
2

9
1
1
9
2

8
6
7
3

-

1
5
5
1

8
3
8
3

-

3
9
7
1
2
2

3
8
9
2
2

0
3
4
4
9
1

3
9
3
3
7

5
3
8
5

5
8
6
3

2
6
3
4

9
4
3
9
5

2
1
5
1

5
3
7
9

6
2
1
1

s
t
c
u
d
o
r
p

l

c
i
t
s
a
p
,
r
e
b
b
u
r
,
l
a
c
m
e
h
c
,
m
u
e
o
r
t
e
p

i

l

l

t

a
o
T

s
t
c
u
d
o
r
p

i

l

s
a
c
m
e
h
c
&
s
a
c
m
e
h
c

i

l

f

o
e
r
u
t
c
a

f

u
n
a
M

I

I

G
N
H
S
F
D
N
A
E
R
U
T
L
U
C
R
G
A

I

L
A
T
O
T
-
B
U
S

L
A
T
O
T

s
e
i
t
i
v
i
t
c
a
d
o
o
w
&
s
e

l
i
t
x
e

t

l

t

a
o
T

I

G
N
R
U
T
C
A
F
U
N
A
M

s
t
c
u
d
o
r
p
d
o
o
F

I

G
N
Y
R
R
A
U
Q
D
N
A
G
N
N
M

I

I

s
t
c
u
d
o
r
p

l

i

a
c
n
a
h
c
e
m
d
n
a

l

t

a
e
m

l

t

a
o
T

i

n
o
i
t
a
c
n
u
m
m
o
c

,

V
T
R

,
s
r
e
t
u
p
m
o
c

i

,
y
r
e
n
h
c
a
m

l

t

a
o
T

i

t
n
e
m
p
u
q
e
t
r
o
p
s
n
a
r
t

t

r
e
h
o
&
s
e
c
h
e
v

l

i

l

t

a
o
T

I

I

N
O
T
A
C
N
U
M
M
O
C
D
N
A
S
T
R
O
P
S
N
A
R
T

S
T
N
A
R
U
A
T
S
E
R
D
N
A
S
L
E
T
O
H

I

S
R
A
P
E
R
D
N
A
E
D
A
R
T

I

S
E
C
V
R
E
S
L
A
T
O
T

I

N
O
T
C
U
R
T
S
N
O
C

t
r
o
p
s
n
a
r
t

t

r
e
a
W

t
r
o
p
s
n
a
r
t

d
n
a
L

t
r
o
p
s
n
a
r
t

r
i

A

R
E
T
A
W
D
N
A
S
A
G

,

I

I

Y
T
C
R
T
C
E
L
E

i

s
n
o
i
t
a
c
n
u
m
m
o
c
e
e

l

t

d
n
a

t
s
o
P

s
e
i
t
i
v
i
t
c
a
r
e
i
r
u
o
c
d
n
a

t
s
o
P

t
r
o
p
s
n
a
r
t

r
i
a
d
n
a
a
e
s

,

d
n
a

l

l

a
t
o
T

I

I

N
O
T
A
D
E
M
R
E
T
N

I

I

L
A
C
N
A
N
F

I

s
n
o

i
t

i

a
c
n
u
m
m
o
c
e
e
T

l

I

I

I

I

S
E
T
V
T
C
A
S
S
E
N
S
U
B
&
E
T
A
T
S
E
L
A
E
R

n
o
i
t
a
i
d
e
m
r
e
t
n

i

l

i

a
c
n
a
n
i
f

r
e
h
t
O

l

t
n
e
m
p
o
e
v
e
d
d
n
a
h
c
r
a
e
s
e
R

s
e
i
t
i
v
i
t
c
a
s
s
e
n
s
u
b
r
e
h
t
O

i

s
e

i
t
i
v
i
t
c
a

t

r
e
u
p
m
o
C

I

S
E
C
V
R
E
S
R
E
H
T
O

s
e

i
t
i
v
i
t
c
a
e
a

t

t
s
e

l

a
e
R

e
t
a
t
s
e
l
a
e
r

f
o
s
e
l
a
s
&
s
e
s
a
h
c
r
u
p
e
t
a
v
i
r
P

t

d
e
a
c
o

l
l

a

t

o
N

n
o
i
t

i

a
d
e
m
r
e
n

t

i

t

y
r
a
e
n
o
M

n
m
R
U
E

,

n
o
i
n
U
n
a
e
p
o
r
u
E

:
r
e
t
r
o
p
e
R

–

3
0
0
2
n
i

y
t
i
v
i
t
c
a

c
i
m
o
n
o
c
e

y
b
s
w
o
l
f

I
D
F
:
2
1

e
l

b
a
  T

:

9
3
1
0
7
1

:

7
0
0
2
-
7
0
-
6
1

9
1
1

.

f
d
p
3
D
F

I

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
T
F
E

1
4
4
6
5
2

5
2
2
6
5
2

9
4
1

1
7
5
1

5
7
5
2
6

5
7
5
4
1

2
6
7
2

3
5
9
1
3

4
6
5
9
2

1
6
2
1
1

8
0
5
1

-

7
5
0
2

0
2
7

2
4
6
1

9
5
0
4
1

1
2
6
2
8
1

5
0
5

0
2
6
4

0
9
6
1

4
8

-

1
4
3

0
9
6

9
9
6

-

9
8
3
1

7
4
9
1

6
8
9
8

7
1
8
0
9

3
7
2
9
6

8
1
8
8
6

5
2
7
0
1

1
8
2
2

9
3
4
2

6
2
9
4
5

6
1
2

3
0
8
3

7
4
9
6

7
8
1
2
6

5
5
1
2
6

9
4

5
7
9
6

8
0
6
4

0
2

9
5
5

7
6
4

9
2
2

-

-

8
6
2
1

5
4
0
2

5
1

0
2
9

2
4
1

4
1
6
1

3
6
6
7
4

8
3

8
3
4

-

2
7

5
1

5
2
3

5
3
0
1

-

5
5

-

9
7
9

2
1
4

-

7
4
1
3

6
2
8
4
2

5
8
6
8
1

8
2
6
9
1

4
4
6

0
5
6

8

-

2
3

9
9
9
1

1
0
7
2

2
1
3
8
1

2
5
8
1
8

1
5
8
1
8

0
2

8
0
2

9
0
4
5
1

3
8
2

1
5
3

0
8
1

1
9
2

-

-

8
1
8
1

7
6
3
3

6
4
9
4

0
2

6
7
1

8
3
4
3
6

1
1
5
0
2

0
2
4

5
2
9

1
0
2

0
4
1

7
5

9
6
3

6

-

5
7
3

7
9
3

7
9
9
4

0
2
9
4
2

3
6
1
3
1

4
5
1
6
1

9
3
7

2
5
2

8
4
1

-

6
0
5

0
8
5
2

2
9
4
5
1

1

8
3
3

4
9
6

4
0
2

4
9
6

9
1
3

8
1
5

4
1

3
4
8

7
5
1

6
9
6

1
2

0
7
6

3
1

0
2
6

2
7
4

2
4
0

2
3
6

6
7
5

1
1
8

8
9
0

2
5

5
4

3
1

4
1

0
2

3

2

2
3
8

7
1
5

6
2

4
4
6

2
9
2

7
1
3

6
3

4
0
0

9
3

9
2
6

3
0
1

6
0
0

4
8

7
6
9

7
8
2

8
5
8

4
6
2

1
3

6
1

0
3

0
1

1
5
1

4

2
1
4

1

2
7
1

6
3

4
4
2
2

0
9
6
2
6

8
1
6

8
1
5

5
6
2
1
1
8

6
8
8

4
5

9
3
0

4
5

2
4
6

2
9
1

2
2
7

0
4
1

0
0
4

3
6
9

6
0
2

6
5
6

6
1
6

7
6

9
3

1
5

7
5

2
1

2
0
2
1
9

6
4
0
3
9

9
6
2
6
9
2

9
2
7
4
2
2

6
6
3
9
9

0
5
2
6
5

3
6
0
2
8

0
2
9
7
6

7
6
7
6
1

6
3
2

-

1
3
2

4

8
7
2

3
5

6
3
1

5
3
6

3
7
4

5
0
7

1
2
8

1
4
6

1
5
1

5

1

3
2

1
2

4

7

7

5
8
7

9
7
3

1
1

-

9
5
0

5
5
5

4
4
3

8
9
1

1

1
3
4

5
1
5

2

7
7
7
3
1
7
3

1
7
9

4
2
2

2
3
5

0
8
5

8
1
8

9
7
5

1

1

8
5
3

1
2
2

4
2
9

7
1
2

3

3

4
9
8
1
0
8
4

6
4
7
7
9
7
4

1
5
1

2
9
2

1
2
1

2
9
2

1
5
7

0
4
7

4
7

4
7

8
8
0

8
8
0

6
7

6
7

2
0
6

4

2
3
8

1
2

1
3
2

2
1

2
8
4

7
7
2

1
2
1

0
7
9

1
6
2

0
3
2

0
8
8

1

5

-

6

1

1
2
5

4
2
3

2
4
4

8
2

0
7
7

0
6
2

7
8
7

1
8
1

7
7
8

6
0
5

6
1
1

8

7

2

2
3
1

9

4
6
0

7
7

7
5
5

0
3

5
7
4

1
1
1

0
0
3

0
2
0

2

2

2
3
3

1
1

7
2
6

3
4
1

-

8
5
9

4
5
1

-

5
9
7

5
1
1

9
9
9

3
2
7

3
8
8

1
6

4
4
5

5
0
6

3
0
9

7
3
3

2
0
7

6
3
1

8
2

2
1

7
8
4

2

5
6
0

0
1

3
5
7

6
0
2

4
7
7

4
6
1

8
4
1

5
5
9

0
7
9

4

3

3

7
6
4

4
1
1

0
2
7

3
3

-

6
8
1

8
4
1

2
7
0

2
1

9
9
1
9
1

9
1
8
3
8
2

1
3
3
5
9
1

4
2
6
5
1
1

6
5
2
6

0
9
9
5

9
5
1
9
2

8
8
3
2
2

-

-

2
7
7
6

-

1
7
8
7
2
1

8
0
3

4
4
0

0
9
1

3
6
2

8
3
1

4

1

7
4
6

1

8
4
7

0
0
9

1
9
5

1

1
8
3

0
2

7
9
1

2
3
1

1

1
4
7
7
3
7
1

6
6
2

3
5
1

9
7
6

6
3
1

0
6
5
8
9
1

6
1
8

4

-

1
9
8

4
1
1

6
3
3

1

3
1
1
0
6
0
2

4
8
1

6
5
1

6
4
2

4
4

6
8
0

1
4
4

4
3
1

0
1

9
3

-

0
8
6

7
6
0

5
1
7

9
1

7
4

3
3
4
3

5
8
8

9
1
0

7
4

6
7

5
5
2

0
6
1

7
7
4

1
9
2

9
3
0

3
0
6

5
3
8

9
4
7

2
3
5

1
0
1

7
5
3

8

3
8
8

5
2

0
4
7
7
8
0
1

5
5
0

7
3

8
1
0
8
3

2
4
8
0
1

5
3
2
0
3
1

4
6
5
7
6

3
1
5
4
9
8

3
8
0
3
2
1

8
4
1
4

4
2
6

0
1
5

2

2
2
4

2

5
9
9

6

4
2
7

3
3

2
7
4

0
2

9
2

5
1

1
1
3

4
1
9

3

3
7
4

6
1

0
4
6

9
4
6

0
5
9

1
6
3

1
8
8

7
8
9

0
5
8

7

2

1

9
4
1

1

0
0
8

2

1
2
0

5
5

6
8

2
0
0

1

8
1

4
3
3

7
6
1

2
7
1

9
1

-

0
9
1

9
1
5

3
0
7

6

8
0
5

9
3

3
9
8

7
1
2

8
5
3

0
8
1

3
2
9

1
1

0
1
2

5

6

9
5

5
4
6

3
2

4
4
3

7
8
1

5
2
7

0
1
9

9
6
9

9
5
2

-

3

2

6
2

1
0
2

1
8
7

7
1

2
5
6

2

2
5
5

2
5

2
3

1
0
4

1

2
3

8
3

7
3
5

0
9
2

3
9
1

3
8
4

8
0
6

-

1
5
0

1

4
8
0

9
3

5
4
6

4
3

8
1
5

9

0
5

7
1
5

4
4
9

5

3
0
0

3

6
3
1

1
0
4

-

-

0

0
5
6
9
3
7

8
9
0
9
3
7

7
2
3

9
5
6
5
3

1
1
3
2
2
1

3
8
6
8

0
2
9
7
1

6
1
4
9
3

0
1
7
0
2

1
9
2
6
1

6
8
2
3

8
6
2
0
1

3
2
1
1
2

8
0
9
3

2
6
0
1

5
7
7
2
0
1

4
2
2
1
9
3

0
5
7
9
4

8
2
3
9
2

8
6
2
4
4
1

6
7
0
7
6

0
4
1
3
4

2
1
8
0
2

3
0
7
1
5

3
4
9
5
4

1
9
3
5
1

2
1
8

7
3
7

1
7

8
2
6

2
1
5

5
8
0

9
7
5

6
5

6
9

3
0
5

7
4
1

3
3
4

5
1
1

1
2
3

7
4
0

9
4
1

1
9
1

4
0
6

2
6

6
2

7
5

4
3

0
1

1
7
8

1

3
1
5

4
7
1

2
5
8

3
0
9

4
3
8

5
0
1

6
0
9

5
2
1

0
7
7

1
9
2

0
1
5

2
8
1

3
6
4

5
0
1

0
6
8

6
4

2
5
8

8
0
1

3
3
1

5
9
9

0
8

5
2

6
4
3
8
4
0
2

7
1
6
7
4
0
2

7
0
7

9
7
3
3

1
4
2

9
7
3
3

2
5
0

8
2
4

8
5
8

6
2
4

5

5

2
2
0
0
2
5

3
6
4
1
1
4
1

8
9
6

4
0
7
2

1
6
1

6
1
1

4

4
4
3
6

5
4
1
2
2

0
9
8
7
3

0
1
0
2

4
4
5

3
7
8

4
0
2
2

8
9
1
9
2

7
2
4
3

5
9
9
6
2

8
2
7
3
6
2

8
9
5
4
9

4
7
9
3
5
1

2
4
5
0
7
1

1
7
9

3
6
3
9

3
2
6
7

5
5
3
9
8

3
9
7
9
1

5
2
6
9
0
9

5
3
8
2
6
1

6
1
8
3
9
6

1
5
3
7
5
2

9
6
7
1
2

4
5
0
1
2

2
2
4
3

1
4
8
9

3
3
4
1
8

3
7
1
7
1
1

7
3
8
3

6
4
1
5

0
1
8
0
1

6
3
4
6
6

7
0
2

1
3

5
6
4

6
6
1

5
3
3

4
0
3

2
7
4

2
8
8

0
3
9

6

3

9

2
3
1

6
6
2

8
1
9
2
2

-

4
3
1

2

3
8
2

0
2

8
9
9

3
6
2

2
5
5

0
7
3
9
1

7
4
7
5
3

8
2
7

5
3
0
6
3

1
6
7
9
7

0
4
2

2
7
5

6
6
4

0
4

4
4

0
1
0
2
5
1

0
6
3
5
0
2

2
5
7

4
0
6

1
5
0

1
4

7
9
8

7
4
2

7
0
5

1
2
4

8
0
3

0
1

8
2
0

9

0
4
7

0
2

7
6
5

2
3
3

5
8
7

0
2

-

4
5
3

3
5
3

5
7
0

0
4

8
2
7

4
1
6

0
7

2
3

9
9
3

0
1

5
9
1
1

6
7
2

6
7

1
1
1

0
1
8

3
3
3

4
2
1

9
5
9

0
6
5

8
4

1
1

8
7
9

6

6
5
5

5
2
1

1
9
3

8
8
2

5
6
2

5
8
4
1

0
9
8

4
9
3

2

2
0
5

0
8
2
1

9
1
3

4
7
9

1

3
8
1

7
7
6

2
3
5

4
3
9

s
t
c
u
d
o
r
p

c
i
t
s
a
p

l

,
r
e
b
b
u
r
,
l

i

a
c
m
e
h
c
,
m
u
e
o
r
t
e
p

l

l

a
t
o
T

I

I

G
N
H
S
F
D
N
A
E
R
U
T
L
U
C
R
G
A

I

s
e

i
t
i
v
i
t
c
a

d
o
o
w
&
s
e

l
i
t
x
e
t

l

a
t
o
T

I

G
N
R
U
T
C
A
F
U
N
A
M

s
t
c
u
d
o
r
p

d
o
o
F

I

G
N
Y
R
R
A
U
Q
D
N
A
G
N
N
M

I

I

L
A
T
O
T
-
B
U
S

L
A
T
O
T

s
t
c
u
d
o
r
p

i

l

s
a
c
m
e
h
c
&
s
a
c
m
e
h
c

i

l

f
o
e
r
u
t
c
a
f
u
n
a
M

n
o

i
t

i

a
c
n
u
m
m
o
c

,

V
T
R

t

,
s
r
e
u
p
m
o
c

i

,
y
r
e
n
h
c
a
m

l

a
t
o
T

s
t
c
u
d
o
r
p

l

i

a
c
n
a
h
c
e
m
d
n
a

l

a
t
e
m

l

a
t
o
T

t

n
e
m
p
u
q
e

i

t
r
o
p
s
n
a
r
t

r
e
h
t
o
&
s
e
c
h
e
v

l

i

l

a
t
o
T

I

I

N
O
T
A
C
N
U
M
M
O
C
D
N
A
S
T
R
O
P
S
N
A
R
T

R
E
T
A
W
D
N
A
S
A
G

,

I

I

Y
T
C
R
T
C
E
L
E

S
T
N
A
R
U
A
T
S
E
R
D
N
A
S
L
E
T
O
H

I

S
R
A
P
E
R
D
N
A
E
D
A
R
T

I

S
E
C
V
R
E
S
L
A
T
O
T

I

N
O
T
C
U
R
T
S
N
O
C

t
r
o
p
s
n
a
r
t

r
e
t
a
W

t
r
o
p
s
n
a
r
t
d
n
a
L

t
r
o
p
s
n
a
r
t

r
i

A

s
n
o

i
t

i

a
c
n
u
m
m
o
c
e
e
t

l

d
n
a

t
s
o
P

s
e

i
t
i
v
i
t
c
a

r
e
i
r
u
o
c

d
n
a

t
s
o
P

i

s
n
o
i
t
a
c
n
u
m
m
o
c
e
e
T

l

I

I

I

I

S
E
T
V
T
C
A
S
S
E
N
S
U
B
&
E
T
A
T
S
E
L
A
E
R

i

n
o
i
t
a
d
e
m
r
e
t
n

i

l
a
i
c
n
a
n
i
f

r
e
h
t
O

t

n
e
m
p
o
e
v
e
d

l

d
n
a

h
c
r
a
e
s
e
R

s
e

i
t
i

v
i
t
c
a

s
s
e
n
i
s
u
b
r
e
h
t
O

I

S
E
C
V
R
E
S
R
E
H
T
O

s
e
i
t
i
v
i
t
c
a
e
t
a
t
s
e

l

a
e
R

s
e
i
t
i
v
i
t
c
a

r
e
t
u
p
m
o
C

t
r
o
p
s
n
a
r
t

r
i

a
d
n
a

a
e
s

,

d
n
a
l

l
a
t
o
T

I

I

N
O
T
A
D
E
M
R
E
T
N

I

I
L
A
C
N
A
N
F

I

i

n
o
i
t
a
d
e
m
r
e
t
n

i

y
r
a
t
e
n
o
M

e
t
a
t
s
e

l

a
e
r

f
o
s
e

l

a
s
&
s
e
s
a
h
c
r
u
p
e
t
a
v
i
r
P

d
e
t
a
c
o

l
l

a

t
o
N

y
m
o
n
o
c
e
g
n
i
t
r
o
p
e
r
e
h
t
n

I

d
a
o
r
b
A

a
d
a
n
a
C

n
a
p
a
J

A
S
U

U
E
a
r
t
x
E

U
E
-
a
r
t
n

I

d
l
r
o
W

A
T
F
E

a
d
a
n
a
C

n
a
p
a
J

A
S
U

U
E
a
r
t
x
E

U
E

-
a
r
t
n

I

d
l
r
o
W

n
m
R
U
E

,

n
o
i
n
U
n
a
e
p
o
r
u
E

:
r
e
t
r
o
p
e
R

–
4
0
0
2
n
i

y
t
i
v
i
t
c
a

c
i
m
o
n
o
c
e

y
b
s
k
c
o
t
s

I
D
F
:
3
1

e
l

b
a
T

:

9
3
1
0
7
1

:

7
0
0
2
-
7
0
-
6
1

0
2
1

.

f
d
p
3
D
F

I

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 2 
Exchange rates 

FDI3.pdf   121

16-07-2007   17:01:39

 
 
 
 
   Annexes 

Table 1: Exchange rates 
Flows – Average yearly exchange rate 

European Union
Austria
Belgium/Luxembourg
Cyprus
Czech Republic
Germany
Denmark
Estonia
Spain
Finland
France
United Kingdom
Greece
Hungary
Ireland
Italy
Lithuania
Latvia
Malta
 Netherlands 
Poland
Portugal
Sweden
Slovenia
Slovakia
Bulgaria
Romania

 XEU
 ATS
 BEF
 CYP
 CZK
 DEM
 DKK
 EEK
 ESP
 FIM
 FRF
 GBP
 GRD
 HUF
 IEP
 ITL
 LTL
 LVL
 MTL
 NLG
 PLN
 PTE
 SEK
 SIT
 SKK
 BGN
 ROL

2001

2002

2003

2004

2005

1
13.76
40.34
0.576
34.068
1.956
7.452
15.647
166.386
5.946
6.56
0.622
340.75
256.59
0.788
1936.27
3.582
0.56
0.403
2.204
3.672
200.482
9.255
217.98
43.3
1.948
2.6

1
13.76
40.34
0.575
30.804
1.956
7.431
15.647
166.386
5.946
6.56
0.629
340.75
242.96
0.788
1936.27
3.459
0.581
0.409
2.204
3.857
200.482
9.161
225.977
42.694
1.949
3.127

1
13.76
40.34
0.584
31.846
1.956
7.431
15.647
166.386
5.946
6.56
0.692
340.75
253.62
0.788
1936.27
3.453
0.641
0.426
2.204
4.4
200.482
9.124
233.849
41.489
1.949
3.755

1
13.76
40.34
0.582
31.891
1.956
7.44
15.647
166.386
5.946
6.56
0.679
340.75
251.66
0.788
1936.27
3.453
0.665
0.428
2.204
4.527
200.482
9.124
239.087
40.022
1.953
4.051

1
13.76
40.34
0.577
29.782
1.956
7.452
15.647
166.386
5.946
6.56
0.684
340.75
248.05
0.788
1936.27
3.453
0.696
0.43
2.204
4.023
200.482
9.282
239.568
38.599
1.956

3.621  

Source: Eurostat, Money, finance and the euro statistics. 

Table 2 : Exchange rates  
Positions – Exchange rate at end of the year 

2001

2002

2003

2004

2005

European Union
Austria
Belgium/Luxembourg
Cyprus
Czech Republic
Germany
Denmark
Estonia
Spain
Finland
France
United Kingdom
Greece
Hungary
Ireland
Italy
Lithuania
Latvia
Malta
 Netherlands 
Poland
Portugal
Sweden
Slovenia
Slovakia
Bulgaria
Romania

 XEU
 ATS
 BEF
 CYP
 CZK
 DEM
 DKK
 EEK
 ESP
 FIM
 FRF
 GBP
 GRD
 HUF
 IEP
 ITL
 LTL
 LVL
 MTL
 NLG
 PLN
 PTE
 SEK
 SIT
 SKK
 BGN
 ROL

1
13.76
40.34
0.575
31.962
1.956
7.437
15.647
166.386
5.946
6.56
0.609
330.3
245.18
0.788
1936.27
3.523
0.556
0.399
2.204
3.495
200.482
9.301
218.836
42.78
1.946
2.782

1
13.76
40.34
0.573
31.577
1.956
7.429
15.647
166.386
5.946
6.56
0.651
340.75
236.29
0.788
1936.27
3.453
0.614
0.418
2.204
4.021
200.482
9.153
239.64
41.503
1.955
3.514

1
13.76
40.34
0.586
32.41
1.956
7.445
15.647
166.386
5.946
6.56
0.705
340.75
262.5
0.788
1936.27
3.452
0.673
0.432
2.204
4.702
200.482
9.08
239.64
41.17
1.956
4.116

Source: Eurostat, Money, finance and the euro statistics. 

122  −  Foreign Direct Investment 

1
13.76
40.34
0.58
30.464
1.956
7.439
15.647
166.386
5.946
6.56
0.705
340.75
245.97
0.788
1936.27
3.453
0.698
0.434
2.204
4.085
200.482
9.021
239.64
38.745
1.956
3.939

1
13.76
40.34
0.574
29
1.956
7.461
15.647
166.386
5.946
6.56
0.685
340.75
252.87
0.788
1936.27
3.453
0.696
0.429
2.204
3.86
200.482
9.389
239.64
37.88
1.956

3.68  

(cid:4)(cid:3)

FDI3.pdf   122

16-07-2007   17:01:39

 
 
ANNEX 3 
Nomenclature 

FDI3.pdf   123

16-07-2007   17:01:39

 
 
 
 
 
   Annexes 

Nomenclature 

Economic activity

Questionnaire 
Y5/Y7 Eurostat

ISIC Rev. 3

NACE Rev. 1.1

AGRICULTURE AND FISHING
MINING AND QUARRYING
Extraction of petroleum and gas
MANUFACTURING
Food products
Textiles and wearing apparel
Wood, publishing and printing
Total textiles & wood activities
Refined petroleum products & other 
treatments
Manufacture of chemicals & chemical 
products
Pharmaceuticals, medical chemical and 
botanical products
Rubber and plastic products
TOTAL petroleum, chemicals,  rubber 
& plastic products
Metal products
Mechanical products
TOTAL metal & mechanical products
Office machinery and computers
Radio, TV, communication equipments
Total machinery, computers, RTV & 
communication equipment
Medical, precision and optical 
instruments, watches ad clocks
Motor vehicles
Other transport equipment
Manufacture of aircraft and spacecraft

TOTAL vehicles & other transport 
equipment
Manufacturing n.i.e  (Residual of all 
manufacturing activities not covered 
above)
ELECTRICITY, GAS AND WATER 
CONSTRUCTION
TOTAL SERVICES
TRADE AND REPAIRS
Sale, maintenance and repair of motor 
vehicles and motor cycles; retail sale of 
automotive fuel
Wholesale trade and commission trade, 
except motor vehicles and motor cycles

Retail trade, except of motor vehicles 
and motor cycles; repair of personal 
and household goods
HOTELS AND RESTAURANTS
COMMUNICATIONS
Transport and storage
Land transport; transport via pipelines
Water transport
Air transport
Supporting and auxiliary transport 
activities; activities of travel agencies
Post and telecommunications
Post and courier activities
Telecommunications

0595

1495

1100

3995

1605

1805

2205

2295

2300

2400

2423

2500

2595

2805

2900

2995

3000

3200

3295

3300

3400

3500

3530

3595

3990

4195

4500

5095

5295

5000

5100

5200

5500

6495

6395

6000

6100

6200

6300

6400

6410
6420

sec A, B

sec C

div 11

sec D

div 15, 16

div 17,18

div 20, 21, 22

div 23

div 24

div 25

div 27, 28

div 29

div 30

div 32

div 34

div 35

sec E

sec F

sec G

sec H

sec I

div 60

div 62

group 642

sec A, B

sec C

div 11

sec D

subsec DA

subsec DB

subsec DD, DE

subsec DB, DD, DE

div 23

div 24

group 24.4

div 25

Sum(div 23, 24, 25)

subsec DJ

subsec DK

Sum(subsection DJ and DK)

div 30

div 32

Sum(div 30, 32)

div 33

div 34

div 35

group 35.3

Sum(div 34, 35)

div 19, 26, 31, 36, 37

sec E

sec F

Sum(sec G, H, I, J, K, L, M, N, O, P, Q)

sec G

div 50

div 51

div 52

sec H

sec I

div 60, 61, 62, 63

div 60

div 61

div 62

div 63

div 64

group 64.1

group 64.2 

ISIC/NACE codes corresponding to the economic activities used in Eurostat 
FDI questionnaires Y5/Y7 and codification for economic activity 

124  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   124

16-07-2007   17:01:39

 
  Annexes 

Questionnaire 
Y5/Y7 
Eurostat

ISIC Rev. 3

NACE Rev. 1.1

6895

6500

6510

6520

6524

6600

6700

7395

7000

7100

7200

7300

7400

7410

7411

7412

7413

7419

7420

7440

7490

8000

8500

9000

9100

9200

9235

9240

9250

9275

9300

sec J

group 651

group 659

sec J

div 65

group 65.1

group 65.2

part of clas 6599

part of class 65.23

sec K

div 70

div 72

div 73

div 74

group 741

group 743

div 66 

div 67

sec K

div 70

div 71

div 72

div 73

div 74

group 74.1

class 7411

class 7412

class 7413

class 7414,7415

group 74.2

group 74.4

group 74.3, 74.5, 74.6, 74.7, 74.8

sec M

sec N

sec O, div 90

sec O, div 91

sec O, div 92

group 92.1, 92.2, 92.3

group 92.4

group 92.5

group 92.6, 92.7

sec O, div 93

9995 sec L, M, N, O, P, Q

sec L, M, N, O, P, Q

9996
9997

9998

9999

sec A, B, C, D, E, F, G, H, I, J, K, L, M, 
N, O, P, Q

Economic activity

FINANCIAL INTERMEDIATION
Financial intermediation, except 
insurance and pension funding
Monetary intermediation 
Other financial intermediation
 Financial holding companies

Insurance companies, pension funds, 
except compulsory social security
Activities auxiliary to financial 
intermediation
REAL ESTATE, RENTING & 
BUSINESS ACT
Real estate activities
Renting of machinery and equipment 
without operator and of personal and 
household goods
Computer activities
Research and development
Other business activities

Legal, accounting, book-keeping and 
auditing activities; tax consultancy; 
market research and public opinion 
polling; business and management 
consulting; holdings
Legal activities
Accounting, bookkeeping and audit; 
tax consultancy
Market research and public opinion 
polling
Business and management consultancy 
activities including those of holding 
companies
Architectural, engineering and other 
technical. activities
Advertising
Business activities n.e.c. (residual)
EDUCATION
HEALTH AND SOCIAL WORK
SEWAGE AND REFUSE DISPOSAL
ACTIVITIES OF MEMBERSHIP 
ORGANIS. N.E.C.
RECREATIONAL, CULTURAL & 
SPORTING ACTIVITIES
Motion picture, radio, television & 
other entertainment activities
News agency activities
Library, archives, museums, other 
cultural activities
Sporting and other recreational 
activities
Other Service Activities
OTHER SERVICES-Aggregate L-Q
Not allocated economic activity
SUB-TOTAL

Private purchases & sales of real estate
TOTAL

ISIC/NACE codes corresponding to the economic activities used in Eurostat 
FDI questionnaires Y5/Y7 and codification for economic activity 

(cid:4) 

Foreign direct investment  −  125 

FDI3.pdf   125

16-07-2007   17:01:40

 
 
FDI3.pdf   126

16-07-2007   17:01:40

(cid:3)

ANNEX 4 
Economic and  
geographical zones 

FDI3.pdf   127

16-07-2007   17:01:40

 
 
 
   Annexes 

BOP GEOGRAPHICAL ZONES

A1 WORLD

 E1 EUROPE (49 countries)

 D2 EU-15 - see economic zones - (15 countries + 2 entities)
 D3 EU-25 - see economic zones - (25 countries + 2 entities)
 V1 EU-27 - see economic zones - (27 countries + 2 entities)
 A5 EFTA - see economic zones - (4 countries)
 E2 Other European countries (19 countries)
Andorra
Albania
Bosnia and Herzegovina
Bulgaria
Belarus
Faroe Islands
Guernsey
Gibraltar
Croatia

 AD
 AL
 BA
 BG
 BY
 FO
 GG
 GI
 HR
 IM Isle of Man
 JE
 MD Moldova, Republic of
 ME Montenegro
 MK  Macedonia, the Former Yugoslav Republic of 
 RO
 RS
 RU
 SM San Marino

Romania
Serbia
Russian Federation

Jersey

Turkey
Ukraine

 TR
 UA
 VA Holy See (Vatican City State)
Serbia and Montenegro
CS

 E4 AFRICA (55 countries)

 E5 North Africa (5 countries)

Includes Occidental Sahara

Includes Cabinda

Algeria
Egypt
Libyan Arab Jamahiriya

 DZ
 EG
 LY
 MA Morocco
 TN

Tunisia
 E6 Other African countries (50 countries)
Angola
Burkina Faso
Burundi
Benin

 AO
 BF
 BI
 BJ
 BW Botswana
 CD
 CF
 CG
 CI
 CM Cameroon
 CV
 DJ
 ER
 ET
 GA
 GH
 GM Gambia
Guinea
 GN
Equatorial Guinea
 GQ

Cape Verde
Djibouti
Eritrea
Ethiopia
Gabon
Ghana

Congo, the Democratic Republic of the 
Central African Republic
Congo
Côte d'Ivoire

128  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   128

16-07-2007   17:01:40

 
 
 
  Annexes 

BOP GEOGRAPHICAL ZONES

 GW Guinea-Bissau
 IO
 KE
 KM Comoros

British Indian Ocean Territory
Kenya

Includes Chagos Archipelago

Includes Anjouan, Grande 
Comore, Mohéli

Liberia
Lesotho

 LR
 LS
 MG Madagascar
 ML Mali
 MR Mauritania
 MU Mauritius

 MW Malawi
 MZ Mozambique
Namibia
 NA
Niger
 NE
 NG
Nigeria
 RW Rwanda

 SC

Seychelles

Includes Rodrigues Island, 
Agalega Islands and Cargados 
Carajos Shoals (St Brandon 
Islands)

Cosmoledo

Includes Alphonse, Bijoutier,
St François Islands, St Pierre
Islands,
Islet,
Providence,
Amirantes,
Aldabra,
and
Desroches, Mahé, Silhouette,
Praslin (including La Digue),
Frégate, Mamelles and Récifs,
Bird and Denis, Plate and
Coëtivy

Farquhar

 SD
 SH

Sudan
St Helena

 SL
 SN
 SO
 ST
 SZ
 TD
 TG
 TZ

Sierra Leone
Senegal
Somalia
Sao Tome and Principe
Swaziland
Chad
Togo
Tanzania, United Republic of

Uganda
South Africa

 UG
 ZA
 ZM Zambia
 ZW Zimbabwe

 E7 AMERICA (46 countries)

 E8 North American countries (3 countries)
Canada
Greenland

 CA
 GL

 US

United States

 E9 Central American countries (30 countries)

 AG
 AI
 AN

Antigua and Barbuda
Anguilla
Netherlands Antilles

 AW Aruba
 BB

Barbados

 BM Bermuda
Bahamas
 BS
Belize
 BZ
Costa Rica
 CR

Includes Ascension, Gough 
Island, Inaccessible, 
Nightingale Islands and 
Tristan da Cunha Islands

Includes Tanganyika, 
Zanzibar Island and Pemba

Includes Puerto Rico (PR) and 
Navassa

Includes Bonaire, Curaçao, 
Saba, St. Eustatius and 
Southern part of St. Martin

(cid:4) 

Foreign direct investment  −  129 

FDI3.pdf   129

16-07-2007   17:01:40

 
 
 
   Annexes 

BOP GEOGRAPHICAL ZONES

Cuba

 CU
 DM Dominica
 DO

Dominican Republic

Grenada
Guatemala
Honduras
Haiti

 GD
 GT
 HN
 HT
 JM Jamaica
 KN St Kitts and Nevis
 KY Cayman Islands
 LC
Saint Lucia
 MS Montserrat
 MX Mexico
 NI
 PA
 SV
 TC
 TT

Nicaragua
Panama
El Salvador
Turks and Caicos Islands
Trinidad and Tobago

St Vincent and the Grenadines

 VC
 VG Virgin Islands, British
 VI

Virgin Islands, U.S.

 F1

South American countries (13 countries)

 AR
 BO
 BR
 CL
 CO
 EC
 FK
 GY
 PE
 PY
 SR
 UY
 VE

Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Falkland Islands (Malvinas)
Guyana
Peru
Paraguay
Suriname
Uruguay
Venezuela

 F2 ASIA (48 countries)

 F3 Near and Middle East countries (17 countries)

 IL
 IR
 F4

Israel
Iran, Islamic Republic of
Gulf Arabian countries (8 countries)
 AE

United Arab 
Emirates

Bahrain
Iraq

 BH
 IQ
 KW Kuwait
 OM Oman

 QA
 SA
 YE

Qatar
Saudi Arabia
Yemen

Includes Southern Grenadines 
Islands

Includes Swan Islands

Includes Corn Islands

Includes former Canal zone

Includes Northern Grenadines 
Islands

Includes Galapagos Islands

Abu Dhabi, Dubai, Sharjah, 
Ajman, Umm al Qaiwain, Ras 
al Khaimah and Fujairah

Includes Kuria Muria Islands

Includes North Yemen and 
South Yemen, Perim, 
Kamaran, Socotra and 
associated Islands            

 F5

Other Near and Middle East countries (7 countries)
 AM Armenia
 AZ
 GE
 JO
 LB
 PS
 SY

Azerbaijan
Georgia
Jordan
Lebanon
Palestinian Territory, Occupied
Syrian Arab Republic

130  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   130

16-07-2007   17:01:40

 
  Annexes 

BOP GEOGRAPHICAL ZONES

 F6 Other Asian countries (32 countries)

 AF
 BD

Afghanistan
Bangladesh

 BN

Brunei Darussalam

 BT
 CN
 HK
 ID
 IN

Bhutan
China
Hong Kong
Indonesia
India

Includes Amindivi Island, 
Laccadive Island, Minicoy 
Island, Andaman Islands, 
Nicobar Islands and Sikkim

 JP
Japan
 KG Kyrgyzstan
 KH Cambodia (Kampuchea)
Korea, Democratic People's Republic of (North Korea)
 KP
Korea, Republic of (South Korea)
 KR
Kazakhstan
 KZ
Lao People's Democratic Republic
 LA
 LK
Sri Lanka
 MM Myanmar
 MN Mongolia
 MO Macao
 MV Maldives
 MY Malaysia

Includes Peninsular Malaysia 
and Eastern Malaysia (Sabah, 
Sarawak and Labuan)

 NP
 PH
 PK
 SG
 TH

Nepal
Philippines
Pakistan
Singapore
Thailand

 TJ

Tajikistan

Timor-Leste

 TL
 TM Turkmenistan
 TW Taiwan, Province of China

Uzbekistan

 UZ
 VN Viet Nam

 F7

 OCEANIA AND POLAR REGIONS  (33 countries)

 AU Australia
Fiji
 FJ
 FM Micronesia, Federated States of

 KI Kiribati
 MH Marshall Islands

 MP Northern Mariana Islands
 NC New Caledonia
 NR Nauru
 NZ New Zealand

Includes the exclave of 
Oecussi

Includes Separate customs 
territory of Taiwan, Penghu, 
Kinmen and Matsu 

Caroline Islands except Palau, 
includes Yap, Chuuk, 
Pohnpei, Kosrae

Includes Mariana Islands 
except Guam

Includes Loyalty Islands

Islands,
Includes Antipodes
Islands, Bounty
Auckland
Islands,
Island,
Campbell
Kermadec Islands, Chatham
Islands and Snares Islands.
Excluding Ross Dependency
(Antartica)

(cid:4) 

Foreign direct investment  −  131 

FDI3.pdf   131

16-07-2007   17:01:40

 
 
 
   Annexes 

BOP GEOGRAPHICAL ZONES

 PF

French Polynesia

 PG Papua New Guinea

 PN Pitcairn
 PW Palau
 SB Solomon Islands

 TO Tonga
 TV Tuvalu
 VU Vanuatu
 WF Wallis and Futuna
 WS Samoa

 F8 Australian Oceania (4 countries)

Cocos (Keeling) Islands 
Christmas Island

 CC
 CX
 HM Heard Island and McDonald Islands
 NF

Norfolk Island

 F9 American Oceania (3 countries)

American Samoa
Guam

 AS
 GU
 UM US Minor Outlying Islands

 G1 New Zealand Oceania (3 countries)
Cook Islands
Niue
Tokelau
 G2 Polar regions (4 countries)

 CK
 NU
 TK

Includes Marquesas Islands, 
Society Islands (including 
Tahiti), Tuamotu Islands, 
Gambier Islands and Austral 
Islands. Also Clipperton 
Island.
Includes Bismarck 
Archipelago, Louisiade 
Archipelago, Admiralty 
Islands,  Northern Solomon 
Islands (Bougainville, Buka, 
Green), d'Entrecasteaux 
Islands,  Lavongai, Trobriand 
Islands, New Britain, New 
Ireland, Woodlark and 
associated Islands

Includes Henderson, Ducie
and Oeno Islands

Includes Southern Solomon 
Islands, primarily 
Guadalcanal, Malaita, San 
Cristobal, Santa Isabel, 
Choiseul

Includes Alofi Island

Baker,  Howland, and Jarvis 
Islands, Johnston Atoll, 
Kingman Reef, Midway 
Islands, Palmyra Atoll and 
Wake Island

 AQ
 BV
 GS
 TF

Antarctica
Bouvet Island
South Georgia  and the South Sandwich Islands
French Southern Territories

Includes Kerguélen, 
Amsterdam and Saint Paul 
Islands, Crozet Archipelago

132  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   132

16-07-2007   17:01:41

 
 
 
 
  Annexes 

BOP ECONOMIC ZONES

A1 WORLD

V1 EU-27 - 27 countries + 2 entities

D3  EU-25 - 25 countries + 2 entities

D2 EU-15 - 15 countries + 2 entities

I3 Euro Area (from 2007 onwards - 13 countries + 1 entity) -

A3

BLEU 

BE
LU
DE

Belgium
Luxembourg
Germany

GR
ES

Greece
Spain

FR

France

IE
IT

Ireland
Italy

NL

Netherlands

AT
PT

SI
FI
4F

Austria
Portugal

Slovenia
Finland
European Central Bank (ECB)

Belgium (BE) + 
Luxembourg (LU) (up to end 
2002)
2002 
2002 
Includes Helgoland. 
Excludes Büsingen and 
Büttenhardter Höfe (customs 
free zones belonging to the 
customs territory of 
Switzerland)

2001 
Includes Balearic Islands, 
Ceuta and Melilla and 
Canary Islands.
Excludes Andorra (AD)

Includes France metropolitan 
(FX), Principality of 
Monaco (MC), Overseas 
Departements: French 
Guyana (GF), Martinique 
(MQ), Guadeloupe (GP) - 
Grande Terre, Basse Terre, 
Marie Galante, Les Saintes, 
Iles de la Petite Terre, 
Désirade, Saint Barthélémy 
and Northern St Martin -, 
Réunion (RE), Territorial 
collectivities: Mayotte (YT), 
Saint Pierre et Miquelon 
(PM).
Excludes Overseas 
Territories (French 
Polynesia (PF), New 
Caledonia (NC) , Wallis and 
Futuna Islands (WF)), 
Andorra (AD).  

Excludes San Marino (SM) 
and the Holy See (VA)

Excludes Netherlands 
Antilles (AN) and Aruba 
(AW)

Includes Acores and 
Madeira
Excludes Macau (MO)
2007 

(cid:4) 

Foreign direct investment  −  133 

FDI3.pdf   133

16-07-2007   17:01:41

 
 
   Annexes 

BOP ECONOMIC ZONES

K3

EU Member States not belonging to Euro Area (from 2007 onwards - 14 
DK

Denmark

Excludes Faroe Islands (FO) 
and Greenland (GL)

SE
GB

Sweden
United Kingdom

Excludes Channel Islands - 
Guernsey (GG) and Jersey - 
(JE) and the Isle of Man 
(IM), Anguilla (AI), 
Montserrat (MS), the British 
Virgin Islands (VG), the 
Turks and Caicos islands 
(TC), and the Cayman 
islands (KY).

CY
CZ
EE
HU
LT
LV
MT
PL
SK
BG
RO
4A

Cyprus
Czech Republic
Estonia
Hungary
Lithuania
Latvia
 Malta
Poland
Slovakia
Bulgaria
Romania
European Union Institutions (excluding ECB) 

2007 
2007 
2007 
2007 
2007 
2007 
2007 
2007 
2007 
2007 
2007 

D4 Extra EU-15

D5 Extra EU-25

V2 Extra EU-27

J3 Extra Euro Area

A3

BLEU ( Belgo-Luxembourg Economic Union)  - up to end 2002 -

BE Belgium
LU Luxembourg

A5

EFTA (European Free Trade Association) - 4 countries -

CH Switzerland
Iceland
IS
LI
Liechtenstein
NO Norway

Finland

AT Austria
DK Denmark
FI
GB United Kingdom
PT Portugal
SE Sweden

1921-2002
1921-2002

1960
1970
1992
1960

1960-1994
1960-1972
1986-1994
1960-1972
1960-1985
1960-1994

A8

OECD (Organisation for Economic Cooperation & Development)
 - (30 countries + 2 entities)

AT  Austria
AU  Australia
BE  Belgium
CA  Canada
CH  Switzerland
CZ  Czech Republic
DE  Germany
DK  Denmark
ES  Spain
FI
 Finland
FR  France
GB  United Kingdom
GR  Greece
HU  Hungary
IE

 Ireland

1961
1971
1961
1961
1961
1996
1961
1961
1961
1969
1961
1961
1961
1996
1961

134  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   134

16-07-2007   17:01:41

 
  Annexes 

BOP ECONOMIC ZONES

 Iceland
 Italy
 Japan

IS
IT
JP
KR  Korea, Republic of (South Korea)
LU  Luxembourg
MX  Mexico
NL  Netherlands
NO  Norway
NZ  New Zealand
PL  Poland
PT  Portugal
SE  Sweden
SK  Slovakia
TR  Turkey
US  United States
4A  European Union Institutions (excluding ECB)
4F

 European Central Bank (ECB)

1961
1961
1964
1997
1961
1994
1961
1961
1973
1997
1961
1961
2001
1961
1961

A9

Countries from Central and Eastern Europe - 6 countries (15 countries up to end 2003) -

AL Albania
BA Bosnia and Herzegovina
BG Bulgaria
HR Croatia
ME Montenegro
MK Macedonia, the Former Yugoslav Republic of
RO Romania
RS Serbia
CS Serbia and Montenegro

up to end 2006

2007

up to end 2006
2007
2003-2006

B1

NAFTA (North American Free Trade Association) - 3 countries -

CA Canada
MX Mexico
US United States

B2

Latin America - 18 countries -

1994
1994
1994

AR Argentina
BO Bolivia
BR Brazil
CL Chile
CO Colombia
CR Costa Rica
CU Cuba
EC Ecuador
GT Guatemala
HN Honduras
MX Mexico
NI Nicaragua
PA Panama
PE Peru
PY Paraguay
SV El Salvador
UY Uruguay
VE Venezuela

B3

ASEAN (Association of South-East Asian Nations) - 10 countries -

BN  Brunei Darussalam
ID  Indonesia
KH  Cambodia (Kampuchea)
LA  Lao People's Democratic Republic
MM  Myanmar
MY  Malaysia
PH  Philippines
SG  Singapore
TH  Thailand
VN  Viet Nam

1984
1967
1999
1997
1997
1967
1967
1967
1967
1995

(cid:4) 

Foreign direct investment  −  135 

FDI3.pdf   135

16-07-2007   17:01:41

 
 
   Annexes 

BOP ECONOMIC ZONES

B4

OPEC (Organisation of  Petroleum Exporting countries) - 11 countries -

AE  United Arab Emirates
DZ  Algeria
ID  Indonesia
IQ  Iraq
IR  Iran, Islamic Republic of
KW  Kuwait
LY  Libyan Arab Jamahiriya
NG  Nigeria
QA  Qatar
SA  Saudi Arabia
VE  Venezuela
EC Ecuador
GA  Gabon

1969
1962
1960
1960
1960
1962
1971
1961
1960
1960
1973-1992
1975-1994

B5

ACP (African, Caribbean and Pacific countries signatories to the Partnership Agreement 
77 countries (48 African  15 Caribbean  14 Pacific countries)

B6 African ACP countries - 48 countries -

AO
BF
BI
BJ
BW
CD
CF
CG
CI
CM
CV
DJ
ER
ET
GA
GH
GM
GN
GQ
GW
KE
KM
LR
LS
MG
ML
MR
MU
MW
MZ
NA
NE
NG
RW
SC
SD
SL
SN
SO
ST
SZ
TD
TG
TZ
UG
ZA
ZM
ZW

1985
 Angola
1963
 Burkina Faso
1963
 Burundi
1963
 Benin
 Botswana
1975
 Congo, the Democratic Republic1963
1963
 Central African Republic
1963
 Congo
1963
 Côte d'Ivoire
1963
 Cameroon
1979
 Cape Verde
1979
 Djibouti
1996
 Eritrea
1975
 Ethiopia
1963
 Gabon
1975
 Ghana
1975
 Gambia
1975
 Guinea
1990
 Equatorial Guinea
1975
 Guinea-Bissau
1969
 Kenya
1979
 Comoros
1975
 Liberia
1975
 Lesotho
1963
 Madagascar
1963
 Mali
1963
 Mauritania
1975
 Mauritius
1975
 Malawi
1984
 Mozambique
1996
 Namibia
1963
 Niger
1975
 Nigeria
1969
 Rwanda
1979
 Seychelles
1975
 Sudan
1975
 Sierra Leone
1963
 Senegal
1963
 Somalia
1979
 Sâo Tome and Principe
1975
 Swaziland
1963
 Chad
1963
 Togo
1969
 Tanzania, United Republic of
1969
 Uganda
1998
South Africa
1975
 Zambia
1984
 Zimbabwe

136  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   136

16-07-2007   17:01:41

 
  Annexes 

BOP ECONOMIC ZONES

B7 Caribbean ACP countries - 15 countries -

AG
BB
BS
BZ
DM
DO
GD
GY
HT
JM
KN
LC
SR
TT
VC

1984
 Antigua and Barbuda
1975
 Barbados
1975
 Bahamas
1984
 Belize
1979
 Dominica
1984
 Dominican Republic
1975
 Grenada
1975
 Guyana
1990
 Haiti
1975
 Jamaica
1984
 St Kitts and  Nevis
1979
 Saint Lucia
1979
 Suriname
 Trinidad and Tobago
1975
 St Vincent and the Grenadines 1984

B8 Pacific ACP countries - 14 countries -

CK
FJ
FM
KI
MH
NR
NU
PG
PW
SB
TO
TV
VU
WS

2000
Cook Islands
 Fiji
1975
Micronesia, Federated States of 2000
1979
 Kiribati
2000
Marshall Islands
2000
Nauru
2000
Niue
1979
 Papua New Guinea
2000
Palau
1979
 Solomon Islands
1975
 Tonga
1979
 Tuvalu
1984
 Vanuatu
1975
 Samoa

B9

NICs1 (the Core Newly Industrialising Countries) - 4 countries -

HK  Hong Kong
KR  Korea, Republic of (South Korea)
SG  Singapore
TW  Taiwan, Province of China

C1

NICs2A (Asian NICs of the second wave of industrialisation) - 3 countries -

MY Malaysia
PH Philippines
TH Thailand

C2

NICs2LA (Latin American NICs of the second wave of industrialisation) - 4 countries -

AR Argentina
BR Brazil
CL Chile
MX Mexico

C3

Mediterranean Basin - 18 countries (20 countries up to end 2003) -

 Gibraltar

AL  Albania
BA  Bosnia and Herzegovina
CY  Cyprus
DZ  Algeria
EG  Egypt
GI
HR  Croatia
IL
 Israel
JO  Jordan
LB  Lebanon
LY  Libyan Arab Jamahiriya
MA  Morocco
ME  Montenegro
MK  Macedonia, the Former Yugoslav Republic of
MT  Malta
PS  Palestinian Territory, Occupied
SI

 Slovenia

up to end 2003

2007

up to end 2003

up to end 2003

(cid:4) 

Foreign direct investment  −  137 

FDI3.pdf   137

16-07-2007   17:01:41

 
 
   Annexes 

BOP ECONOMIC ZONES

SY  Syrian Arab Republic
TN  Tunisia
TR  Turkey
RS  Serbia
CS  Serbia and Montenegro

C4

Offshore financial centers - 38 countries -

2007
2003 - 2006

AD Andorra
AG Antigua and Barbuda
AI Anguilla
AN Netherlands Antilles
BB Barbados
BH Bahrain
BM Bermuda
BS Bahamas
BZ Belize
CK Cook Islands
DM Dominica
GD Grenada
GG Guernsey
GI Gibraltar
HK Hong Kong
IM 
Isle of Man
JE Jersey
JM Jamaica
KN St Kitts and Nevis
KY Cayman Islands
LB Lebanon
LC  Saint Lucia
LI
LR Liberia
MH Marshall Islands
MS Montserrat
MV Maldives
NR Nauru
NU Niue
PA Panama
PH Philippines
SG Singapore
TC Turks and Caicos Islands
VC Saint Vincent and the Grenadines
VG Virgin Islands, British 
VI Virgin Islands, U.S.
VU Vanuatu
WS  Samoa

Liechtenstein

C5

French Franc zone - 15 countries -

BF Burkina Faso
BJ Benin
CF Central African Republic
CG Congo
CI Côte d'Ivoire
CM Cameroon
GA Gabon
GQ Equatorial Guinea
GW  Guinea-Bissau
KM Comoros
ML Mali
NE Niger
SN Senegal
TD Chad
TG Togo

C6

Commonwealth of Independent States (CIS) - 12 countries -

AM Armenia
AZ Azerbaijan
BY Belarus

1946
1946
1946
1946
1946
1946
1946
1946
1997
1946
1946
1946
1946
1946
1946

1992
1992
1992

138  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   138

16-07-2007   17:01:41

 
  Annexes 

1994
1992
1992
1992
1992
1992
1992
1992
1992

BOP ECONOMIC ZONES

GE Georgia
KG Kyrgyzstan
KZ Kazakhstan
MD Moldova, Republic of
RU Russian Federation
TJ Tajikistan
TM Turkmenistan
UA Ukraine
UZ Uzbekistan

C7

Countries from Maghreb -3 countries -

DZ Algeria
MA Morocco
TN Tunisia

C8

Countries from Mashrek - 5 countries -

EG  Egypt
JO  Jordan
LB  Lebanon
PS  Palestinian Territory, Occupied
SY  Syrian Arab Republic

C9

MERCOSUR (Countries of the South Cone Common Market) - 4 countries - 

AR Argentina
BR Brazil
PY Paraguay
UY Uruguay

D1

APEC  (Asia-Pacific Economic Cooperation) - 21 countries -

AU Australia
BN Brunei  Darussalam
CA Canada
CL Chile
CN China
HK Hong Kong
ID Indonesia
JP
Japan
KR Korea, Republic of (South Korea)
MX Mexico
MY Malaysia
NZ New Zealand
PE Peru
PG Papua New Guinea
PH Philippines
RU Russian Federation
SG Singapore
TH Thailand
TW Taiwan, Province of China
US United States
VN Viet Nam

D6

Candidate countries - 

CY Cyprus
CZ Czech Republic
EE Estonia
HU Hungary
LT Lithuania
LV Latvia
MT  Malta
PL Poland
Slovenia
SI
SK Slovakia
BG Bulgaria
HR Croatia
RO Romania
TR Turkey

1991
1991
1991
1991

1989
1989
1989
1995
1992
1992
1989
1989
1989
1994
1989
1989
1999
1994
1989
1999
1989
1989
1992
1989
1999

1991 - 2003
1996 - 2003
1996 - 2003
1994 - 2003
1996 - 2003
1996 - 2003
1991 - 2003
1994 - 2003
1996 - 2003
1995 - 2003
1996 - 2006
2004
1995 - 2006
1987

(cid:4) 

Foreign direct investment  −  139 

FDI3.pdf   139

16-07-2007   17:01:42

 
 
   Annexes 

BOP ECONOMIC ZONES

D7

Mediterranean countries in the Euro-Mediterranean Partnership - 12 countries - 

2001 - 2003

2001 - 2003

CY Cyprus
DZ Algeria
EG  Egypt
IL
 Israel
JO  Jordan
LB  Lebanon
MA Morocco
MT  Malta
PS  Palestinian Territory, Occupied
SY  Syrian Arab Republic
TN Tunisia
TR Turkey

D8 New EU Member States 2004 (up to end 2007)

CY Cyprus
CZ Czech Republic
EE Estonia
HU Hungary
LT Lithuania
LV Latvia
MT  Malta
PL Poland
SI
Slovenia
SK Slovakia

W4

Extra Euro Area not allocated

Z8

Z9

Extra EU not allocated

Rest of the World (World - Country or Entity)

140  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   140

16-07-2007   17:01:42

 
ANNEX 5 
Glossary 

FDI3.pdf   141

16-07-2007   17:01:42

 
 
 
 
 
FDI3.pdf   142

16-07-2007   17:01:42

  Annexes 

Glossary 

is  a  statistical  statement 
time  period, 

Balance of payments 
that 
The  balance  of  payments 
systematically  summarises,  for  a  specific 
the 
economic transactions of a country with the rest of the world. The 
two  main  categories  of  the  balance  of  payments  are:  the  current 
account  (goods,  services,  income  and  current  transfers)  and  the 
capital  and  financial  account  (capital  transfers,  direct  investment, 
portfolio investment, other investment and reserve assets). Foreign 
direct investment (FDI) flows appear in the financial account of the 
balance of payments, FDI income flows in the current account. 

Foreign direct investment 
Foreign  direct  investment  (FDI)  is  cross-border  investment  made 
by a direct investor with the intent of obtaining a lasting interest in 
an  enterprise  resident  in  another  country  (direct  investment 
enterprise).  International  investment  is  classed  as  FDI  when  an 
investor owns 10 % or more of ordinary shares or voting rights in 
an incorporated or unincorporated enterprise abroad respectively. 

Foreign direct investment flows 
FDI flows are direct investment transactions from the reporting to 
the  partner  country  (outward  FDI)  and  from  the  partner  to  the 
reporting country (inward FDI). They include the net purchase by 
the  investor  of  the  investment  company’s  equity  capital,  plus  the 
direct  investor’s  share  in  the  company’s  reinvested  earnings,  plus 
other  capital,  which  is  the  net  increase  in  trade  and  other  credit, 
including the net purchase of debt and other financial instruments. 

Foreign direct investment stocks 
Also referred to as FDI positions, foreign direct investment stocks 
are  a  measure,  at  a  specific  point  in  time,  of  the  value  and 
composition  of  a  country’s  FDI  assets  (outward  stocks,  or  claims 
on  the  rest  of  the  world)  and  of  its  FDI  liabilities  (inward  stocks 
from the rest of the world).  

Foreign direct investment income 
FDI  income  consists  of  income  on  FDI  equity  and  of  interest 
payable  on  inter-company  debt.  Income  on  equity  consists  of 
dividends  due  for  payment  in  the  period  to  the  direct  investor, 
gross  of  withholding  taxes,  plus  the  direct  investor’s  share  of  the 
company’s  reinvested  earnings.  The  calculation  of  income  on 
equity  requires  information  on  the  total  profits  from  the  current 
operations  and  the  distributed  dividends  of  the  enterprise.  This 
information  is  often  available  with  a  delay  which  leads  to  the 
necessity  for  estimating  reinvested  earnings  from  projections  of 

(cid:4) 

Foreign direct investment  −  143 

FDI3.pdf   143

16-07-2007   17:01:42

 
 
 
 
 
 
   Annexes 

total profits to provide income on equity data. Interest payable on 
inter-company  debt  is  interest  accrued  during  the  period  by  the 
enterprise  to  the  direct  investor  and  includes  interest  on  the 
borrowing  and  the  lending  of  funds  including  debt  securities  and 
suppliers’ credits. 

Disinvestment 
Disinvestment  is  the  withdrawal  of  direct  investment  capital.  The 
most  frequent  cases  are  where  inter-company  debt  (e.g.  a  loan)  is 
paid  back  or  where  the  direct  investor  sells  participation  (e.g. 
shares) it had invested in the direct investment enterprise. 

Equity capital 
Equity  capital  includes  equity  in  branches,  ordinary  shares 
(excluding non-participating preference shares) in subsidiaries and 
associates, and other capital contributions such as the provision of 
machinery. 

Market and book value 
Market price is the price that willing buyers would pay to acquire a 
financial asset from a willing seller. The use of market price is one 
of  the  key  principles  of  balance  of  payments  compilation.  FDI 
flows are recorded at market values and, in principle, all asset and 
liability  stocks  comprising  a  country’s  IIP  should  be  measured  at 
market  prices  (IMF,  BPM5).  However,  because  the  evaluation  of 
market prices for the different kinds of assets may be difficult, FDI 
being  less  readily  marketable  than  portfolio  investments  for 
example,  the  book  value  (accounting  value)  of  assets  in  company 
balance sheets (or an estimate of market value based thereon) may 
sometimes be used. 

Mergers and acquisitions 
As opposed to greenfield investments, where investment is made in 
building  up  a  new  facility,  mergers  and  acquisitions  (M&As) 
involve a change of assets, representing an on-going concern, from 
domestic  to  foreign  hands.  The  investor  acquires  part  or  all,  or 
merges  with  an  existing  foreign direct  investment  firm.  The  latter 
may be privately or State owned as privatisations involving foreign 
investors  count  as  cross-border  M&As  and  entail  a  change  in  the 
control  of  the  merged  or  acquired  firm.  In  the  case  of  a  cross-
border merger, the assets and operations of two firms belonging to 
two  different  countries  are  combined  to  establish  a  new  legal 
entity. 

M&As  have  made  up  a  growing  proportion  of  FDI  flows  but  the 
two  must  not  be  confused:  FDI  statistics  include  greenfield 
investments  and  also  include  loans  (so  called  ‘other  capital’)  and 
reinvested earnings. 

144  −  Foreign Direct Investment 

(cid:4)(cid:3)

FDI3.pdf   144

16-07-2007   17:01:42

 
 
 
 
 
  Annexes 

Other capital 
Other  capital  covers  inter-company  debt  between  direct  investors 
and direct investment enterprises. It includes short-term loans such 
as trade credits. 

Partner economy 
The  partner  economy  is  the  country  or  economic  zone  which  the 
reporting  economy  is  in  a  foreign  direct  investment  relationship 
with. 

Reinvested earnings 
These consist of the direct investor’s share, in proportion to equity 
held,  of  the  undistributed  earnings  of  the  direct  investment 
enterprise.  Reinvested  earnings  are  conceived  of  as  providing 
additional  capital  to  the  direct  investment  enterprise  and  they 
appear  both  as  an  item  of  the  income  account  and,  as  they 
contribute to FDI flows, as an item of the financial account. 

Reporting economy 
The  reporting  economy  is  the  country  or  economic  zone  whose 
data are reported. 

Sign convention 
The  balance  of  payments  sign  convention  records  outward  direct 
investment with a minus sign and inward direct investment with a 
plus sign. 

Outward  disinvestments  should  consequently  be  entered  with  (+ ) 
and  inward  disinvestment  with  (–).  Following  requests  from 
readers,  both  for  inward  and  outward  flows,  investment  is 
presented in the statistical tables of this publication with a positive 
sign and disinvestment with a negative sign. 

List of abbreviations 
EUR bn is used to denote billions of Euros. 
EUR mn is used to denote millions of Euros. 

(cid:4) 

Foreign direct investment  −  145 

FDI3.pdf   145

16-07-2007   17:01:42

 
 
 
 
 
 
 
 
 
biblio.pdf   1

16-07-2007   17:39:31

European Commission

European Union foreign direct investment yearbook 2007

Luxembourg: Office for Official Publications of the European Communities

2007 — 145 pp. — 10,5 x 21 cm

Theme: Economy and finance
Collection: Pocketbooks

ISBN 978-92-79-05567-6

biblio.pdf   1

16-07-2007   17:39:31

biblio.pdf   1

16-07-2007   17:39:31