Direct investment: Major effects from mergers of Swedish and Finnish companies

At end 1998 Swedish direct investment assets abroad totalled SEK 727 billion, an increase of SEK 135 billion from 1997. Assets in the OECD area made up 91 per cent of the total. Foreign direct investment assets in Sweden totalled SEK 416 billion, an increase of SEK 86 billion from the previous year. Ownership of 95 per cent was in the OECD area.

 

A large part of the increase in Swedish as well as foreign direct investment assets is a result of mergers between Swedish and Finnish companies, in the first place between Nordbanken and Meritabank and between Stora and Enso.

These results come from the Riksbank’s annual direct investment survey, which is published today.

 

The income generated by the direct investment assets is also measured in the survey. Income on the Swedish assets abroad totalled SEK 75 billion, while income on foreign direct investment in Sweden totalled SEK 35 billion. Both these figures are considerably higher than in 1997.

 

The income on direct investment assets is booked in the current account of the balance of payments. The results in the present survey add up to a positive net figure of SEK 40 billion for 1998. This figure replaces the earlier preliminary data, which gives an upward revision of about SEK 12 billion to the balance on current account for 1998.

Copies of the direct investment survey can be obtained (in Swedish; an English edition will be available later) at the Riksbank entrance at 11, Brunkebergstorg or 7, Malmskillnadsgatan. They can also be ordered from Information Riksbank: e-mail: info@riksbank.se; telephone: +46 8 787 01 01; fax: +46 8 787 05 26; and can be downloaded from the Riksbank’s website: www.riksbank.se (select Publications and then Other from the list).

 

For further information please contact the Financial Statistics Department:
Maria Falk, telephone +46 8 787 03 68
Kati Lauronen, telephone +46 8 787 07 19