The number of FDI projects in Europe declined by 3% in 2011, with a mixed performance across countries, according to The fDi Report 2012, released by fDi Intelligence.
The UK experienced solid growth in FDI, reinforcing its position as the leading FDI location in Europe. As well as a 13% increase in recorded FDI project numbers, capital investment in the UK increased by 48% and FDI job creation by 33%. However, in terms of total job creation, FDI in Russia generated the highest number of new jobs, with 89,047 jobs created in 2011 compared to 66,817 in the UK. This was despite a decline in FDI in Russia in 2011.
A selection of small and medium-sized economies in Europe performed strongly. Ireland, the Netherlands, Serbia and Romania all achieved a significant growth in inward FDI. While the Netherlands was the best performer, with 29% growth in FDI projects in 2011, estimated job creation from FDI in the Netherlands actually fell by 13% as the average project size declined. In contrast, job creation in Ireland grew by 13% and capital investment by 78%. Positioned outside the top 10, Belgium was among the countries that experienced a downturn, with a 43% decline in the number of recorded FDI projects in 2011.
In terms of investment overseas, the UK retained its position as the leading European investor measured by the number of FDI projects established overseas in 2011, closely followed by Germany. German companies, however, created a higher number of jobs overseas, with 180,830 created by German companies in 2011 and 155,987 by UK companies. The number of FDI projects overseas from France and Russia increased slightly in 2011. FDI from Spain created 19% fewer jobs and 28% lower capital investment than in 2010.
Ireland and Denmark also saw growth in the number of outward FDI projects by 20% and 21%, respectively. Capital investment made by Danish companies overseas increased from an estimated $3.4bn in 2010 to nearly $8bn in 2011. Major Danish investors included Grundfos, a manufacturer of pipes and pumps, investing in a €50m manufacturing facility in Serbia, and Lego announcing plans to boost capacity at its Nyiregyhaza plant in Hungary with an investment of $94m.
To download the full report, please visit www.fdiintelligence.com/fDiReport