Entrepreneurs throughout the EU are looking for new investments abroad as growth rates in Europe are slowing down. The headlines have made much of the immense drawing power of China. But where are investors really putting their money?
Estimates from the bloc's Eurostat data agency showed this month that the flow of European cash into Indian firms surged more than fourfold last year, far surpassing EU investments into Chinese companies.
Foreign direct investment (FDI) from the 27-nation European Union into India jumped to EUR 10.9 billion last year, up from 2.5 billion in 2006, Eurostat said.
Meanwhile, the flow of EU foreign direct investment into China -- excluding Hong Kong -- slumped last year to EUR 1.8 billion from 6.0 billion in 2006 despite intense media interest in the country as an emerging Asian economic power.
The drop meant that China was the least popular destination for EU FDI last year among the four major emerging economies, with oil-rich Russia taking in EUR 17.1 billion in European investment and Brazil 7.1 billion.
The United States, Europe's biggest trade partner, remained by far the biggest destination for EU investors' cash, taking in EUR 112.6 billion, up from 79.0 billion.
Overall, EU FDI into the rest of the world rose 53 percent last year to EUR 419.9 billion, up from 275.0 billion in 2006.
Eurostat defines FDI as a long-term investment by an investor in one country in a company in another country that gives the investor more than 10 percent control over the voting rights on the target company's board of directors.
And you? Where are you putting your money?
Sam Juneau-16/6/2008.