Foreign direct investment, net inflows (% of GDP) - Country Ranking - Europe

Definition: Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors, and is divided by GDP.

Source: International Monetary Fund, International Financial Statistics and Balance of Payments databases, World Bank, International Debt Statistics, and World Bank and OECD GDP estimates.

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 Hungary 108.42 2020
2 Luxembourg 84.72 2020
3 Malta 29.95 2020
4 Estonia 11.54 2020
5 Montenegro 11.06 2020
6 Lithuania 7.92 2020
7 Ireland 7.62 2020
8 Albania 7.19 2020
9 Serbia 6.54 2020
10 Sweden 5.25 2020
11 Bulgaria 3.87 2020
12 Germany 2.93 2020
13 Poland 2.91 2020
14 Latvia 2.80 2020
15 Spain 2.63 2020
16 Czech Republic 2.62 2020
17 Belarus 2.31 2020
18 Croatia 2.06 2020
19 Portugal 2.06 2020
20 Bosnia and Herzegovina 2.06 2020
21 Greece 1.75 2020
22 Romania 1.45 2020
23 Moldova 1.32 2020
24 United Kingdom 1.13 2020
25 Turkey 1.06 2020
26 Slovenia 0.91 2020
27 France 0.50 2020
28 Denmark 0.44 2020
29 Ukraine 0.20 2020
30 North Macedonia 0.06 2020
31 Slovak Republic -0.31 2020
32 Finland -0.88 2020
33 Norway -1.05 2020
34 Italy -1.17 2020
35 Cyprus -1.33 2020
36 Belgium -3.37 2020
37 Austria -4.20 2020
38 Iceland -4.73 2020
39 Netherlands -16.34 2020
40 Switzerland -34.21 2020
41 Liechtenstein -1,275.19 2018

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Development Relevance: Private financial flows - equity and debt - account for the bulk of development finance. Equity flows comprise foreign direct investment (FDI) and portfolio equity. Debt flows are financing raised through bond issuance, bank lending, and supplier credits.

Limitations and Exceptions: FDI data do not give a complete picture of international investment in an economy. Balance of payments data on FDI do not include capital raised locally, an important source of investment financing in some developing countries. In addition, FDI data omit nonequity cross-border transactions such as intra-unit flows of goods and services. The volume of global private financial flows reported by the World Bank generally differs from that reported by other sources because of differences in sources, classification of economies, and method used to adjust and disaggregate reported information. In addition, particularly for debt financing, differences may also reflect how some installments of the transactions and certain offshore issuances are treated. Data on equity flows are shown for all countries for which data are available.

Statistical Concept and Methodology: Data on equity flows are based on balance of payments data reported by the International Monetary Fund (IMF). Foreign direct investment (FDI) data are supplemented by the World Bank staff estimates using data from the United Nations Conference on Trade and Development (UNCTAD) and official national sources. The internationally accepted definition of FDI (from the sixth edition of the IMF's Balance of Payments Manual [2009]), includes the following components: equity investment, including investment associated with equity that gives rise to control or influence; investment in indirectly influenced or controlled enterprises; investment in fellow enterprises; debt (except selected debt); and reverse investment. The Framework for Direct Investment Relationships provides criteria for determining whether cross-border ownership results in a direct investment relationship, based on control and influence. Distinguished from other kinds of international investment, FDI is made to establish a lasting interest in or effective management control over an enterprise in another country. A lasting interest in an investment enterprise typically involves establishing warehouses, manufacturing facilities, and other permanent or long-term organizations abroad. Direct investments may take the form of greenfield investment, where the investor starts a new venture in a foreign country by constructing new operational facilities; joint venture, where the investor enters into a partnership agreement with a company abroad to establish a new enterprise; or merger and acquisition, where the investor acquires an existing enterprise abroad. The IMF suggests that investments should account for at least 10 percent of voting stock to be counted as FDI. In practice many countries set a higher threshold. Many countries fail to report reinvested earnings, and the definition of long-term loans differs among countries. BoP refers to Balance of Payments.

Aggregation method: Weighted average

Periodicity: Annual

General Comments: Note: Data starting from 2005 are based on the sixth edition of the IMF's Balance of Payments Manual (BPM6).