Definition
Category of the financial account of the Balance of Payments (BoP) and the International Investment Position (IIP) that records all financial transactions (BoP) or net positions (IIP) between resident and non-resident companies that maintain a direct investment relationship.
Further information
Direct investment relationships involve control or a significant degree of influence over the management of a company that is resident in another economy. In practice, it is assumed that for ownership, this participation must be at least 10% of the ordinary shares or voting rights. Direct investment also includes reverse financial transactions or positions, from the subsidiary to the parent company or between subsidiaries of the same parent company.
The Balance of Payments and the International Investment Position. Methodological Note.
Related concepts
- Balance of Payments
- Portfolio investment
- Other investment
- International Investment Position
- International reserves / Reserve assets
- Functional category
References
- Sixth Edition of the IMF’s Balance of Payments and International Investment Position Manual.

- OECD. Definition of the Framework for Foreign Direct Investment. 4th edition.

Legal frame
- Regulation (EC) No 184/2005 of the European Parliament and of the Council of 12 January 2005 on Community statistics concerning balance of payments, international trade in services and foreign direct investment

- 2012/120/EU: Guideline of the European Central Bank, of December 9, 2011, on the statistical reporting requirements of the European Central Bank in the field of external statistics (recast version) (ECB/2011/23).

Links to data tables
Selection of tables
Other resources
- BExplore the external statistics (interactive charts).
- In brief. Graphical summary of external statistics.
Update date: January 2025