Swedish corporate assets abroad increased substantially during 2000

Swedish corporate assets in the form of direct investment abroad increased substantially last year. At the end of 2000, Swedish direct investment abroad amounted to SEK 1,145 billion, which is an increase of just over 30 per cent on 1999. The value of the corresponding foreign direct investment assets in Sweden during the same period also increased, although not to the same extent. This information is revealed in the Riksbank's annual survey of direct investment, which is published today.

The increase in Swedish direct investment assets abroad is mainly accounted for by a few large mergers and acquisitions in the banking and telecom sectors. The main contribution to the growth in foreign direct investment in Sweden, on the other hand, comes from investments in the engineering and pharmaceuticals industries.

As in previous years, the USA and the Netherlands are the largest recipients of Swedish direct investment. Approximately one third of Swedish investments are aimed at these countries. The Netherlands is also close to the top of the list of countries with investment assets in Sweden. However, the country with the largest ownership of direct investment assets in Sweden is Finland. The significance of the Netherlands as both recipient and investor is mainly due to the large percentage of holding companies registered there.

The information on direct investment assets is mainly used in the statistics on Sweden's international investment position, where it comprises a central item. Historically, direct investment assets have provided a positive contribution to the Swedish foreign debt, which is also emphasised by this survey. In addition to the statistical use, the data can also be used as a measure of Sweden's degree of dependence on other countries/internationalisation. The picture of Sweden as one of the largest countries (relative to its size) with regard to foreign direct investment assets is further strengthened by the results of this survey.

The survey also measures the income generated by direct investment assets, i.e. corporate profits. Swedish direct investment assets abroad provided an income of SEK 111 billion for 2000, while the income for foreign countries with direct investment assets in Sweden amounted to SEK 70 billion.

Income on direct investment assets is booked in the current account of the Swedish balance of payments. According to the results of the current survey, income on direct investment assets adds up to a positive net figure of SEK 41 billion. This figure replaces the earlier preliminary data, which gives an upward revision of approximately SEK 6 billion to the balance on the current account for 2000.

More detailed information in tabular form can be found on the Riksbank's website www.riksbank.se. A complete report of the survey will be available from mid-January 2002.

Further information can be obtained from the Monetary Policy Department, Maria Sjöholm, tel. +46 8 787 08 23 and Anders Lindström +46 8 787 05 60.