Direct investment, transactions (discontinued), 1998-2007

The direct investment in foreign equity capital continued to increase in 2007 but the reduction in other capital (inter-company loans etc.) led to a decrease in the total direct investment abroad compared with the two previous years. Foreign direct investment into Norway amounted to NOK 28.7 billion, which was also lower than in 2006. The reduction applied both to shares and other equity and to loans.

Reinvestment of earnings is the profit of the investment companies that is not distributed but is reinvested. The figures for 2007 are an extrapolation of the 2006 figures as the data for calculation of the real figures are not yet available.

A new reporting system

Up to 2003, the stock of inward foreign direct investment was solely based on surveys conducted by the Central Bank of Norway (Norges Bank). Since 2004, the figures have been based on a new survey-based balance of payments (BoP) reporting system introduced by Statistics Norway, which took over the FDI statistics from Norges Bank. In addition, information from annual accounts submitted to the Register of Company Accounts has been used for 2004. This gives rise to a break in the time series between 2003 and 2004. The population of companies in the former Norges Bank and the new Statistics Norway surveys are in principle identical, apart from standard changes due to new investments and discontinuation. The largest difference between the two surveys is that Norges Bank’s survey was mainly based on consolidated group accounts for a Norwegian group of investment companies, whereas the new system is based on the accounts of each investment company. This may have a significant impact on the calculations of the equity capital as well as the assets and liabilities between the investor and the investment company.

Previously published FDI figures for 2004 have been revised based on new information. Also worth noting is that deposed dividends, which were previously included in “other claims”, are now included in equity capital as an adaption to the IFRS accounting standard.

Tables:

• Table 1 Direct investment abroad (net). 1998-2007. NOK Million
• Table 2 Direct investment in Norway (net). 1998-2007. NOK Million