The number of FDI (foreign direct investment)
projects into and out of Europe declined in 2012, mirroring global trends. A
total of 3,891 projects into Europe were recorded, representing a 20.82%
decrease in comparison with 2011. In 2012, the top 10 countries accounted for
72.19% of FDI projects into Europe. FDI projects into Ireland (new to Ireland and new projects by existing foreign-owned firms in Ireland) amounted to 147
and represents a decline of 21%. Spain and Poland were the only top countries to
experience a growth in FDI.
The data on what are termed 'greenfield' projects (include both
new arrivals and expansions by existing companies and are ranked in numbers rather than
value) come from
fDi Intelligence, a unit of the Financial Times. The Irish data also
includes projects other than those supported by IDA Ireland, the inward
investment agency, such as retail projects eg Tesco, Aldi etc.
The fDi says there were 170 Irish sourced
projects in 2012. However, this data includes foreign companies with Irish
headquarters and other foreign-related transactions.
Overall, 2012 was a very difficult year for the global foreign direct investment
market. But there were exceptions, with a number of countries experiencing
strong growth in inward investment projects.
fDi said Asia-Pacific remained the leading
regional destination for FDI in 2012, with 3740 projects tracked, increasing its
global market share to 31.72%. Of the top five destinations in Asia-Pacific,
Australia was the only country to achieve growth in project numbers, with FDI
rising by 4.24%. This increase follows a small decline in FDI in Australia in
In North America, most states and provinces
experienced a decline in FDI, with Michigan the outstanding exception achieving
a 60% growth in FDI projects. Alabama also achieved strong growth. The two
states’ excellent performances reflect the rebound of the automotive
sector in the US.
The latest edition of 'The fDi Report' has
a special focus on the BRIC economies of Brazil, Russia, India and China.
fDi says that in recent years these countries have attracted more than 22% of
global FDI projects, however, their share declined in 2012 to 17.6%. FDI
into China, India and Russia peaked in 2008 and has not recovered since. FDI
into Brazil, after a record high in 2011, experienced a decline in 2012. The
number of FDI projects in China and Russia in 2012 was the lowest in the past
decade. With Brazil struggling to regain growth, Russia muddling along, and
growth levels in China and India falling, we expect the market share of BRICs in
global FDI to continue to decline in 2013.
Separate data this week showed that
Europe was the most popular destination for Chinese FDI.
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