In 2004, Germany (PDF) experienced negative FDI inflows (-$38.6 billion) for the first time since 1992. This was caused mainly by a large drop in the equity capital component of FDI and by a net repayment of cross-border intra-company loans by foreign affiliates in Germany. In 2003, the repayment of loans by foreign investors was partly attributable to a revision of the German Corporation Tax Act (Körperschaftssteuergesetz) that was intended to encourage foreign companies to convert corporate loans to their German affiliates into equity capital. However, the addition to equity was much lower than the repayment of credits, which resulted in a net reduction in FDI flows to Germany. Also, the improved profitability of companies located in Germany may have motivated repayment of loans by German affiliates to their parent companies abroad. In 2003, there were 9,314 affiliates of foreign TNCs in Germany, with sales worth €834.600 billion.
National investment profiles are being published online as they become available, based on each country´s reporting schedules. The profiles, which are part of UNCTAD´s World Investment Directory, provide quick electronic access to the latest statistics on foreign direct investment (FDI) and the operations of transnational corporations (TNCs). They also include statistical definitions and sources, a listing of relevant national laws and regulations, information on bilateral and multilateral agreements and a bibliography of the country concerned.
