Foreign direct investment (FDI) outflows from the OECD area to the rest of the world picked up from USD 593 billion in 2003 to USD 668 billion in 2004. However, direct investment inflows continued on a downward trend, reaching a comparatively low USD 407 billion in 2004. Outward FDI from the United States reached USD 252 billion in 2004 to hit an all-time record. While this to some extent reflects the weakness of the dollar it also points to a very strong interest among US companies in acquiring corporate assets abroad. Conversely, direct investment into Germany and France, the two largest economies of the European continent, fell sharply in 2004. The downturn largely reflects a repayment, out of Europe, of inter-company loans and other positions between related enterprises. OECD countries’ traditional role as net providers of FDI to the rest of the world grew even more pronounced in 2004. Net outflows, estimated at USD 261 billion, were the highest in recorded history. Most of this money went to developing countries. As in earlier years, China and a couple of Asian financial centres remain the largest recipients, but FDI into a range of countries, including Russia, India and much of South America, has also picked up lately. On top of this, several of the more advanced developing countries are emerging as outward investors, their national companies establishing subsidiaries in neighbouring countries and increasingly also on a more global basis.