Foreign direct investment at €12.1 billion in June 2012

As at June 2012, foreign direct investment in Malta was estimated at €12.1 billion, with 79.5 per cent originating from financial and insurance activities. This amounts to an increase of €195.3 million over the corresponding month in 2011. Geographically, the EU is the largest contributor to Malta's inward foreign direct investment, with €8.2 billion, or 68.0 per cent of total FDI. On its own, Germany accounted for 40.4 per cent of total FDI in Malta.

The level of flows decreased significantly when comparing the first six months of 2012 with the corresponding period of the previous year. Net flows were estimated at -€218.2 million.

These were mainly the result of a decrease in re-invested earnings, resulting from large dividend payouts, and a substantial increase in receivables. These accounts registered decreases of €70.0 million and €158.0 million respectively when compared to the previous year.

Direct Investment abroad

Outward flows of direct investment during the first six months of 2012 amounted to €12.3 million, almost at the same level as the previous year. An increase of €7.9 million in equity capital and of €8.3 million in receivables from direct investors were partly offset by a decrease of €3.9 million in re-invested earnings.

In terms of stock positions, in June 2012 direct investment abroad by resident enterprises was estimated at €1.3 billion, of which €742.0 million were invested in the EU. As in the previous years, direct investment abroad was predominantly in financial and insurance activities, accounting for over 45.3 per cent of total stock as at end June 2012.