Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
The US is now the main recipient of Danish foreign direct investment
In 2022, the US was for the first time the country where Danish companies have the most direct investments. However, total Danish direct investment abroad has decreased for the first time in many years. This is due to depreciation and negative value adjustments on existing investments, among other things. The US has for several years been the country with the most direct investments in Denmark.
Most direct investments go to the US and Europe
Note:
Danish companies' direct investments abroad. A direct investment is an investment in foreign companies and branches where the investor holds at least 10 per cent. of the equity or voting rights in the company. Denmark's direct investments are calculated according to the directional principle and are excl. pass-through investments. Find chart data here.
Increased investment in the US
Danish companies increased their direct investments in the US to kr. 281 billion in 2022, corresponding to 17 per cent of total direct investments abroad of kr. 1,664 billion. Part of the increase in Danish companies' direct investments in the USA in recent years comes from investments in wind turbines. The leading position of the US as the preferred investment country is, among other things, due to significant investments from large Danish groups such as Ørsted, Novo Nordisk, Danfoss, Vestas and DSV. After the US, Danish companies had the most direct investments in three of our neighboring countries, Great Britain, Germany and Sweden. Overall, these three countries receive 35 per cent of the investments.
Decrease in total investments abroad
After several years with continuous increases in Danish direct investments abroad, the investments fell by 3 per cent (kr. 47 billion) in 2022. The decrease occurred as a result of depreciation and negative value adjustments, while new investments contributed positively. This was counteracted by the fact that Danish companies increasingly finance themselves via foreign subsidiaries. This is typically done by setting up a subsidiary in the Netherlands, which issues debt securities in the market and lends the proceeds back to its Danish parent. Debt to subsidiaries is deducted in the calculation of outward investments. The increased financing via subsidiaries thus contributed to reducing outward direct investments in 2022.
The US is the largest investor country in Denmark
Almost half (42 per cent) of foreign direct investments in Denmark pass through one or more countries before they reach Denmark. These investments are typically made via holding companies, for example in the Netherlands and Luxembourg, which are often used as transit countries, or via companies in our neighboring countries. When looking through ownership structures, the US accounted for 20 per cent of the total inward investments in Denmark of kr. 926 billion in 2022. The US is thus by far the largest investor in Denmark and has been so for several years.
Part of the foreign direct investment in Denmark are made by Danish companies. While this may seem paradoxical, it can be attributed to Danish companies and foundations that invest in Denmark through a foreign subsidiary. These so-called "round trip" investments are made by channeling investments via a company abroad, for example to achieve more favorable financing conditions.
The US is the largest investor country
Note:
Direct inward investments in Danish companies calculated on ultimate investor country and first counterparty country, respectively. The calculation is calculated according to the directional principle and excludes Danish pass-through holding companies. Find chart data here.