Foreign Investment in the European Union (EU)

EUobserver.com reports that investment in the new European Union members states increased by 70 percent whereas investment in the old EU member states dropped by 36 percent in the year 2004.

It should be noted for the world as a whole that, on average, foreign direct investment (FDI) in developed countries decreased at the same time that FDI in underdeveloped countries increased. FDI is dominated - on average - to 2/3 by equity investment, with intra-company loans accounting for 23% (on average) and reinvested earnings for 12% (on average). The top spot in the world in terms of total amount of investment increase was occupied by Hong Kong (China), or 46% by percent increase.

The figures come from the World Investment Report 2005, 29 September 2005, prepared annually by UNCTAD, which can be downloaded directly from the UNCTAD website.

The report is 366 pages and there is also an overview of 50 pages available. The report is available in English, Arabic, Chinese, French, Russian and Spanish.

Crossposted to LawPundit.

Technorati Tags world economy, investment, foreign investment, european economy, EU, European Union, Europe, UNCTAD, United Nations.
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