Be the first to comment!Foreign Direct Investment in Malta drops by €21 million
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At the end of June 2009, the stock position of Foreign Direct Investment in Malta reached €5.9 billion while that of Direct Investment abroad amounted to €1.0 billion.
Foreign Direct Investment (FDI) flows in Malta from the rest of the world during the first six months of 2009 resulted in a net inflow of €207.2 million, €21.0 million less than inflows in the corresponding period a year ago. A shortfall in reinvested earnings, together with decreases in both claims on and liabilities to direct investors abroad contributed to this outcome.
According to the geographical breakdown, 41.3 per cent of net inflows of FDI for the first six months of 2009 originated from Member States of the European Union (EU27), while a further 41.8 per cent came from Asia. During the same period in 2008, the EU27 contributed 44.0 per cent of FDI inflows while 30.3 per cent originated from Turkey.
Enterprises involved in financial intermediation contributed €97.1 million of net FDI inflows (46.9 per cent) while the share of the same group in the corresponding period last year was €136.9 million, or 60.0 per cent of the total. The position at the end of June 2009 improved by €427.5 million compared to the end of June 2008. The main increase was accounted for by Turkey, with an increase of €228.8 million.
The greater part of foreign direct investment stocks in Malta as at the end of June 2009 is contributed by the EU27 (53.5 per cent) with Austria accounting for 21.0 per cent of the total. Direct investment from the Australia and Oceania regions amounts to 15.5 per cent of the total with a further 10.6 per cent contributed by Asian countries.
Net investment abroad during the first half of 2009 amounted to €18.7 million compared to a net outflow of €88.8 million in the corresponding period in 2008. The increase in equity capital abroad of €75.3 million last year was the result of a one-off transaction.
The stock position at the end of June 2009 amounted to €1,006.2 million, an increase of €173.7 million over the position prevailing at the end of June 2008. The increase in investment in EU27 countries amounted to €124.9 million, or 71.9 per cent. The share of direct investment stocks in the EU27 at the end of June 2009 accounted for 59.6 per cent of the total stock.
