Direct investment in Sweden and abroad

Date 08/11/2005

The Riksbank’s annual survey of direct investment, which is published today, shows the value of Swedish direct investment abroad has increased by SEK 102 billion whilst the value of foreign direct investment in Sweden increased by SEK 172 billion in 2004.

The total value of Swedish direct investment assets abroad increased by SEK 102 billion during 2004 to SEK 1,400 billion. The largest assets were found in the United States and Finland and the greatest increase in assets was within the chemical, pharmaceutical and banking sectors.

Foreign direct investment in Sweden amounted to SEK 1,316 billion, an increase of SEK 172 billion from the previous year. By the end of 2004 the largest owners of direct investment assets in Sweden were companies from the United States and the Netherlands. Also for direct investment in Sweden the greatest increase in assets was within the chemical, pharmaceutical and banking sectors.

The value of direct investments is influenced by new and follow-up investments along with reinvestment of earnings, group loans, but also exchange rate fluctuations.

In the survey, also income generated by direct investment is measured. Income on Swedish-owned assets abroad in 2004 totalled SEK 141 billion, an improvement of SEK 16 billion compared to the previous year. Corresponding income on foreign-owned assets in Sweden totalled SEK 92 billion in 2004, which is SEK 56 billion more than in the survey for 2003. The income on direct investments generated a positive contribution to the current account balance of SEK 49 billion in 2004. 

An English version of the full report will be available on the Riksbank’s website, www.riksbank.com, under Statistics, Balance of Payments, Surveys.