FDI inflows to and outflows from the United Kingdom declined by 61% and 44%, respectively, last year, although they remained above the average of the mid-1990s. The country has been a net outward investor since 1991. Outward FDI stock grew faster than inward stock, increasing fourfold between 1990 and 2001.
United Kingdom FDI flows are mainly to and from developed countries; the European Union has been the country´s main partner since 1999, when it first replaced the United States. However, the US is still the single most important country of origin for the UK´s FDI stock, accounting for more than a quarter of the total in financial services. The share of developing countries in the total has declined since 2000, in favour of locations within the European Union. FDI from the European Union has increased, and since 1999 has represented about half of all the UK´s FDI stock.
The tertiary sector accounts for the largest share of both inflows and outflows of FDI. Finance has overtaken mining, quarrying and petroleum to account for about one fifth of inward FDI stock. On the outward side, transport, storage and communications represent about a quarter. In 1990, mining, quarrying and petroleum accounted for about one fifth of the total inward and outward stock.
FDI stock as a percentage of gross fixed capital formation accounted for about 30% in 2001 but was much higher during 1999-2000. The ratio of FDI stock to GDP was also very high in 2001, reaching about 60% (outward stock) and 30% (inward stock).
National investment profiles are being published online as they become available, based on each country´s reporting schedules. The profiles, which are part of UNCTAD´s World Investment Directory, provide quick electronic access to the latest statistics on foreign direct investment (FDI) and the operations of transnational corporations (TNCs). They include statistical definitions and sources, a listing of relevant national laws and regulations, information on bilateral and multilateral agreements and a bibliography.
