Belgium has been among the countries most affected by the transfers of funds of multinational companies, which means that FDI infows and outflows are highly volatile, as pointed out by the annual World Investment Report for 2014 published by the UNCTAD (United Nations Conference on Trade and Development). FDI flows are expected to recover in 2014.
Among the attractions of Belgian economy are: its strategic geographical position, at the crossroads of the main European markets; its high-quality transport, logistics and telecommunications infrastructure; its businesses specialized in the supply of intermediate and semi-finished goods; its multilingual and qualified workforce and a strong purchasing power.
|Index of Transaction Transparency*||8.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||6.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||7.0||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||119,022||-30,261||-2,406|
|FDI Stock (million USD)||942,817||911,485||924,020|
|Performance Index*, Ranking on 181 Economies||2||-||-|
|Potential Index**, Ranking on 177 Economies||32||-||-|
|Number of Greenfield Investments***||115||81||119|
|FDI Inwards (in % of GFCF****)||111.8||-30.2||-2.3|
|FDI Stock (in % of GDP)||183.3||188.6||182.4|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
With regard to the financial crisis, the outcome from the authorities was quick, with the hardening of lending conditions on the inter-banking market. Nevertheless, the Belgian government will develop and implement withdrawal strategies later, aimed at avoiding having the state hold a long-term stake in the creation.
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Last Updates: October 2014