Foreign direct investment up by €8.2 billion last year

The stock position of foreign direct investment in Malta stood at €141.9 million as of the end of December 2014, a registered €8.2 billion over the corresponding month in 2013.

National statistics show that €139.1 billion originated from financial and insurance activities, accounting for 98% of all 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.

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.

Government says financial and insurance activities are main drivers of FDI increase

 The government has welcomed the latest NSO figures showing that FDI in Malta has increased by 14.4 billion in the last two years, claiming financial and insurance activities were 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 statement reads.

Minister for Finance, Edward Scicluna commented that the 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,” he said.