4th Quarter 2016


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2016 FDI [ Map and Graphs]



The automotive industry was once more the largest target for foreign investors.

2016 FDI continued

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The accompanying map indicates the location and size of the year's foreign investment. As can be seen, the automotive industry was once more the largest target for foreign investors. Seven of the 18 investments in 2016 were in this sector (and an eighth makes automotive components among its other products). The concentration in the automotive sector was actually a bit less than over the past few years. In 2015, more than 60% of the new or expanding firms were automotive-related.

By value, more than three-fifths of new 2016 foreign investment came from either Japan or Germany. As for the past three decades, Japan was by quite a margin the leading source. However, two investments from France combined to create 750 new jobs, more than from any other country. Japan and Canada were second and third with 550 and 346 jobs, respectively.

The big story of 2015, the arrival of substantial investment from China, did not continue. The only new investment was a solitary acquisition by a Chinese investment company. Though one can argue that such investment may strengthen local firms and make them more competitive, acquisitions such as that by Shanda Investments initially create no new jobs or facilities. One reason for the decline in Chinese investment is presumably the renewed restrictions on outward investment imposed by that country's government in 2016 as a way to stymie the drop in its currency.