FDI inflow grows by 51 pct yr/yr to Kc26.3bn in Q1 - ministry

FDI inflow decreased by 26 percent to Kc95.6bn in full-year 2011, while in the year 2010 FDIs more than doubled to almost Kc130bn.

"As in previous periods of time, reinvested profits were the main part of the first-quarter FDIs, Kc28.8bn. The annual amount of reinvested profits has grown in the past few years," the ministry said.

"This testifies to the success of the investments and investor trust in further development," the ministry added.

Domestic companies´ share capital was boosted by Kc3.3bn worth of FDIs in the first quarter. Outflow in the form of other capital amounted to Kc5.76bn.

Czech companies´ direct investments abroad totalled Kc8.95bn in Jan to March, up 39 percent year-on-year. Domestic investors reinvested a major part of their previous investment profits, Kc5.6bn.

Investments by Czech companies in share capital of foreign subsidiaries stood at Kc0.6bn in the first three months of the year. The money went above all in the manufacture of motor vehicles and oil, chemical and pharmaceutical products.

Domestic companies provided Kc2.7bn worth of other capital to foreign subsidiaries, the ministry said.

Author: ČTK
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