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2009-12-21

Swedish foreign direct investment increases

Swedish direct investment assets abroad were 2,414 billion SEK at the end of 2008. That is an increase of 355 billion SEK compared to 2007 where a weaker krona (SEK) has been of great importance.

Foreign direct investment in Sweden 2008 amounted to 2 122
billion SEK, an increase of 255 billion from the year before.

The increase in the value of the Swedish direct investment abroad is partly due to that the Swedish krona weakened sharply in late 2008.

The value of foreign direct investment in Sweden increased during 2008 as well. For example, it could be explained through increased net lending to foreign-owned Swedish subsidiaries, as well as acquisitions and restructurings.

The return on direct investment has been affected by the recession and in 2008 the trend of increasing income levels that prevailed in recent years stopped.

Swedish-owned foreign direct investment in 2008 yielded a
return of 252 billion, a decline of 13 billion compared with 2007.

The return on foreign direct investment in Sweden amounted
to 89 billion in 2008. That is a reduction of 48 billion over the previous year. The return on direct investments resulted in a positive contribution to the balance of current accounts at 163 billion for 2008.


Definitions and explanations

A direct investment occurs when someone, usually a company, directly or indirectly owns 10 percent or more in a business or commercial property located in another country.

The direct investment assets that are measured in the study consist of total equity and financial assets and liabilities within a direct investment relationship and directly owned real estate.

Real investments in facilities or machinery are not included.
The results of this study are also included in Sweden's assets and debts to foreign countries.

In recognition of direct investment in Sweden's assets and liabilities towards countries abroad, information about recreational property and commercial credits are added. These items are not included in this study


                                                                                      Cecilia Helland

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Source: Central Bureau of Statistics - Visit them here
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