The Netherlands leads global investment

The Netherlands leads global investment

The Netherlands ranks first in the world as regards the level of inward and outward foreign investment.

This top ranking is flattered by the favourable tax treatment of these investments in the Netherlands. But even after adjusting for this effect, the Netherlands is a large investor, numbering among the global top ten, according to the Bank of the Netherlands (DNB).

In view of the strongly increased interest in direct investment the IMF has begun collecting worldwide data on direct investment. The results of this Coordinated Direct Investment Survey (CDIS) have recently been published on the IMF website (http://cdis.imf.org).

At end-2009, the Netherlands accounted for USD 3,700 billion in foreign direct investment. In other words, Dutch enterprises invested a total of this amount in associated foreign enterprises. This represents around 18 per cent of total outward investment as reported by the participating countries to the IMF. Conversely, the Netherlands welcomed an inflow of USD 3,000 billion in inward foreign direct investment.

The United States followed at some distance with outward direct investment of USD 3,500 billion and inward of USD 2,300.Luxembourgranked third with USD 1,750 and 1,800 billion respectively.

One explanation for the significant position of the Netherlands, is that many headquarters of large multinationals are established in this country, such as Shell, Unilever, Philips and Ahold.

Source: DNB

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