Analysis of developments in the fields of direct investment and M&A – 2012 Report Part I: Recent Developments

Sector: Finance | Financial markets and Institutions
Client: EC DG Internal Market and Services
Published: November, 2012
Document type: Report 
Tagged: analysis of economic developments EC/EEA other international quantitative analysis

The study examines recent trends in FDI and capital movements. Overall, the recovery in world-wide FDI witnessed in 2010 continued in 2011, after the sharp decline in the period 2007-09. In 2011, the level of worldwide inward FDI reached €1.1 trillion, increasing by 10.9% from its level in 2010. However, the 2011 level is still below the 2007 peak of more than €1.4 trillion. While FDI continued to recover in 2011, total international capital flows fell to slightly below €4 trillion, representing a decline of 15.4%. This was mainly driven by a decline in portfolio investment liabilities, mainly in private sector portfolio flows. EU27 FDI flows recovered sharply. Inward FDI into the EU27 more than doubled, reaching €225 billion after having fallen to a low of €104 billion in 2010. Outward FDI grew from €146 billion in 2010 to €370 billion in 2011. Intra-EU FDI stood at €374 billion in 2011, up from €186 billion.