Swedish direct investment assets abroad in the form of equity increased by SEK 207 billion to SEK 3 079 billion at the end of the year. Net claims against foreign subsidiaries and associated companies amounted to SEK 301 billion, an increase of SEK 55 billion compared with 2015. Sweden’s largest direct investment assets abroad are in the United States, Finland and Norway. As in previous years, the largest assets abroad are owned by Swedish companies operating in finance and insurance, and companies manufacturing metal and machinery products.

Among total direct investment assets abroad, SEK 140 billion were controlled by Swedish special purpose entities (SPEs). SPEs are enterprises that are ultimately controlled from abroad and, beyond owning assets and liabilities, have limited activities in Sweden. Reporting SPE data separately gives a more meaningful measure of a country’s incoming and outgoing direct investments by making it possible to exclude capital that only passes through a country on its way to other destinations.

Development of the Swedish krona

In 2016, the Swedish krona was weakened by 3 percent compared with other currencies, according to the trade-weighted TCW index. The Swedish krona was weakened against the euro and the US dollar, by 5 percent and 9 percent respectively. These currency exchange changes have contributed to the increase of the asset value and return on Swedish direct investments abroad, measured in Swedish krona.

Decreased net liabilities to foreign owner groups

Foreign direct investment assets in Sweden increased by SEK 92 billion to SEK 2 725 billion at the end of 2016. At the end of the year, net liabilities to foreign owner groups were SEK 54 billion less than in the previous year and amounted to SEK 490 billion. In 2016, equity increased by SEK 147 billion to SEK 2 236 billion in total.

The Netherlands continues to be the largest holder of foreign direct investment assets in Sweden, followed by Luxembourg and the United Kingdom. The largest foreign direct investment assets in Sweden are in petroleum products, chemicals, pharmaceuticals, rubber and plastic products, and in financial and insurance activities. Among total direct investments in Sweden, SEK 159 billion comprise investments in Swedish SPEs.

Minor changes in income

Income on Swedish direct investment assets abroad decreased by SEK 1 billion and amounted to SEK 237 billion in total. Return on foreign direct investment assets in Sweden increased by SEK 4 billion compared with 2015, and amounted to SEK 181 billion.