Net foreign direct investment (FDI) stocks held in the rest of the world by investors resident in the EU amounted to €9 382 billion (bn) in 2022, reflecting a 1.4% decrease from 2021 (€9 512 bn).
A similar tendency was visible in investment stocks held by the rest of the world in the EU, which decreased to €7 715 bn in 2022, down 1.5% compared with 2021 (€7 831 bn).
In 2022, the EUˈs net investment position vis-à-vis the rest of the world remained relatively stable, with a 0.8% decrease compared with 2021.
Special Purpose Entities (SPEs) continued to play a significant role in FDI. At the end of 2022 they accounted for 31% of the total EU FDI stocks held abroad, and for 36% of the FDI stocks held by the rest of the world in the EU. This share remained relatively stable compared with the previous year, but a significant decrease is visible when considering a longer timeframe. Five years earlier, in 2017, SPEs represented a more substantial share, accounting for 53% of the total EU FDI stocks held abroad and for 64% of the FDI stocks held by the rest of the world in the EU.
USA and the UK: main FDI partners
At the end of 2022, the United States absorbed 28% of the total FDI stocks held by the EU in the rest of the world (€2 656 bn), followed by the United Kingdom (€1 713 bn, 18%). They were ahead of Switzerland (€914 bn, 10%), Canada (€315 bn), Brazil (€293 bn), Singapore (€293 bn) and China (€247 bn), all with a 3% share. Shares of EU stocks in Russia (€208 bn), Mexico (€194 bn) and the Cayman Islands (€183) exceeded 2% of the total amount.
In the opposite direction, the United States’ direct investors accounted for almost a third (€2 452 bn, 32%) of the total FDI stocks held by the rest of the world in the EU. The United Kingdom (€1 403 bn, 18%) followed, ahead of Switzerland (€690 bn, 9%), Bermuda (€390 bn, 5%), Canada (€306 bn, 4%), Cayman Islands (€297 bn, 4%), Japan (€236 bn, 3%), Singapore (€206 bn, 3%), Hong Kong (€194 bn, 3%) and United Arab Emirates (€136 bn, 2%).
Russia investments drop, while Ukraine remain stable
Following the 2021 increase in investments to and from Russia, in 2022, the share of FDI stocks held by the EU in Russia dropped by 16%. The share of stocks held by Russian investors in the EU witnessed an 8% drop. EU stocks in Ukraine remained stable (0.1% increase), while the share of stocks held by Ukrainian investors in the EU increased by 3%.
Source: ec.europa.eu