The stock position of Foreign Direct Investment in Malta as at end December 2014 stood at €141.9 billion, while Direct Investment abroad amounted to €36.7 billion, the NSO said today.
Foreign Direct Investment (FDI) in Malta
As at December 2014, foreign direct investment in Malta was estimated at €141.9 billion.
This amounts to an increase of €8.2 billion over the corresponding month in 2013. It can be noted that €139.1 billion originated from financial and insurance activities, accounting for 98.0 per cent of foreign direct investment in Malta.
There was a net increase of €7.0 billion in FDI flows during 2014, compared to an increase of €7.4 billion during 2013. Increases in claims on direct investors were the main contributors to this increase, with decreases in equity capital having a mitigating effect.
Direct Investment abroad
During 2014, direct investment abroad increased by €1.8 billion, compared to an increase of €2.0 billion during the previous year. This was mainly the result of increases in claims on direct investors of €2.3 billion.
In terms of stock position, in December 2014 direct investment abroad by resident entities was estimated at €36.7 billion.
Marked investors’ confidence reflected in foreign direct investment flows
In a statement, the government said that figures published by NSO shows that inward Foreign Direct Investment (FDI) in Malta increased by €7.0 billion in 2014 following a further increase of €7.4 billion in 2013. This means that over two years, FDI in Malta increased by 14.4 billion.
It is also welcoming the fact that FDI inflows increased in all economic activities, with the financial and insurance activities being the main driver of the increase. Of particular note is the fact that investment in manufacturing registered a marked increase of €38 million in 2014 following a notable increase of €101 million in 2013. This contrasts with a fall of €78 million in 2012.
The Minister for Finance, Edward Scicluna commented that: ‘This strong inflow of FDI is one of the most important indicators of the confidence that foreign investors have in the prospects of our economy. This is the result of Government’s efforts to ensure fiscal sustainability, creating the right macroeconomic conditions while pro-actively seeking investment in new growth sectors.’