Foreign direct investment in Malta improves slightly

The stock position of Foreign Direct Investment in Malta at the end of December 2011 stood at €12.5 billion, while Direct Investment abroad amounted to €1.3 billion, according to the National Statistics Office (NSO) data.

At the end of December 2011, foreign direct investment in Malta improved slightly over the position a year before, to an estimated €12.5 billion. The European Union Member States (EU27) remained the  largest  contributors  of  FDI  in  Malta,  with  €8.9  billion,  or  71.0  per  cent  of  total  FDI.  Germany accounted for 56.3 per cent of this amount. There was also an increase of €192 million from the EU27 over the position at the end of 2010.

FDI net inflows in 2011 are estimated at €371.2 million, with 80.1 per cent emanating from the EU. The  drop  in  total  net  inflows  of  FDI  when  compared  to  the  previous  year  is  largely  due  to  the extraordinary net inflow of €758.7 million from the Australia and Oceania region in 2010. There was a turnaround in flows from the Other European Countries, from a net outflow of €303.5 million in 2010 to a net inflow of €15.6 million last year. Equity capital from abroad increased by €90.6 million while reinvested earnings showed a net increase of €173.4 million during 2011. There was also an increase of €107.1 million in Other Capital.

The  main  contributors  to  the  increase  in  FDI  net  inflows  during  2011  were  enterprises  active  in
financial and insurance activities as well as those in manufacturing, making up 85.2 per cent of total increases.  As regards the FDI stock position, financial and insurance activities continued to be the principal contributors with a share of 76.1 per cent of total FDI stock.

The outward direct investment position for 2011 remained at the level of the previous year, estimated at €1.3 billion. Investments in the EU accounted for 60.0 per cent.  The increase in equity capital abroad during the year was compensated for by an increase in other capital liabilities to subsidiaries abroad.  Reinvested  earnings  increased  by  €3.9  million  during  2011.

Enterprises in financial and insurance activities contributed 44.9 per cent of direct investment stock abroad at the end of 2011