Last year the Netherlands was the world’s top recipient of foreign direct investment, according to data compiled by the IMF. It accounted for about $4 trillion while the United States came second with $2.9 trillion. Due to the fact that these funds passed through on the way to other economies, both countries also led the way for outward investment last year. The United States was in first place with $4.9 trillion, slightly ahead of the Netherlands’ $4.8 trillion.
Many countries, including the Netherlands and Luxembourg, have special legistlation providing advantages to multinational corporations using these countries as pass-throughs, according to the IMF , significantly boosting investment figures. The Dutch Central Bank (DNB ) also states that only part of total inward investments affects the Dutch real economy. The country’s top position is largely thanks to its Special Financial Institutions (SFIs) sector, which were established as a financial turntable for entities with foreign parent companies.