Foreign investment in Spain rebounds in 2010: government

21st March 2011, Comments 0 comments

Foreign direct investment in Spain rebounded last year after being hit hard by the global economic slowdown, with the Netherlands, France and Britain leading the charge, the government said Monday.

The country attracted 23.4 billion euros ($33.2 billion) in foreign direct investment in 2010, a 41.5 percent jump over the previous year, the industry ministry said in a statement.

The Netherlands, France and Britain accounted for over half, or 56 percent, of investment inflows in 2010, followed by Italy, Luxembourg and the United States.

Foreign direct investment in Spain plunged 62 percent in 2009 over the previous year to 14.7 billion euros as the global economy shrank for the first time since World War II.

The rebound in foreign direct investment is welcome news for Spain, which is struggling to boost growth and fend off market fears that it will need a bailout from the IMF and the European Union like Greece and Ireland.

Spain's economy contracted 0.1 percent in 2010 after dropping 3.7 percent in the previous year in the wake of the collapse of a property boom which had allowed economic growth to outpace the EU average for more than a decade.

Disinvestment fell 7.6 percent in 2010 over the previous year, causing net foreign investment to rise 53 percent to 20.5 billion euros, the industry ministry said.

The main sectors receiving foreign investment last year were transport and storage, and real estate, which each accounted for 17 percent of the total amount, followed by the manufacturing industry which got 14.8 percent.

© 2011 AFP

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