3. Background
3. BACKGROUND
Foreign investment in Spain: Evolution over 2009
The foreign companies present in Spain play a key role as regards promoting the competitiveness of the local economy. The over 10,500
foreign companies established in Spain directly employ over 1.37 million people and produce 40% of Spanish exports. Moreover, inflows of
foreign direct investment (FDI) to Spain in 2009 accounted for 31.8% of the finance needs generated by the current account.
The difficult global economic situation over 2009 led to a significant fall (-38.7%) in world flows of FDI, which shrunk by USD 1.04 trillion,
according to preliminary data from UNCTAD. This drop was particularly marked in developed countries where a 41.2% decrease was recorded.
In Spain, and according to data from the Foreign Investment Register at the Ministry of Industry, Tourism and Trade, FDI inflows in 2009
amounted to 14.694 billion euros, which represents a drop of 62% on the previous year.
The quarterly evolution of FDI flows during 2009 shows a more positive trend in the 2 nd semester than in the first 6 months, sustained in
the 1 st quarter of 2010, in comparison to the same period of the previous year. This, together with the gradual recovery of the financial and
capital markets on an international scale and the signs of economic recovery that are beginning to emerge in several countries, could act as
key factors to improve FDI flows in 2010, in line with the recovery in investment and employment forecasts given by companies surveyed in the
Barometer.
As far as greenfield projects are concerned, and according to the consulting firm Ernst & Young, in 2009 Spain was still the 4 th most attractive
country regarding this form of investment, garnering a total of 173 projects (5% of the total), although it dropped 18% on the previous year.
These projects created 5,212 jobs, 3% more than in 2008.
Barometer of the Business Climate in Spain, 2010 results
Background
8
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