FDI Into Japan Reaches Record High for Second Straight Year in 2008

Net FDI into Japan (balance of payment basis) reached a record high for the second consecutive year in 2008, reaching US$24.5 billion, up 10.7% from US$22.1 billion recorded the previous year. This is on a gross capital inflow of US$73.2 billion, a record, and a gross capital outflow of US$48.6 billion, which is not far behind the US$52.5 billion recorded in 2006. The high inflow was led by additional investments made by financial institutions and companies seeking to boost the capital of their Japanese subsidiaries, while deteriorating economic conditions in industrialized nations may have played a factor in the high outflow figure.