Foreign investment pullback risks less funding in the euro area

Foreign direct investment weakened in Belgium, Latvia and Estonia in 2025, while Cyprus rebounded. Net withdrawals reached 3.7% of GDP in Belgium; Cyprus drew inflows of 54.2%.

Belgium: Net foreign direct investment withdrawals widened to 3.7% of GDP in 2025 from 1.6% in 2024, extending the pullback from abroad.
Estonia: Investment reversed from net inflows of 2.5% of GDP in 2024 to net withdrawals of 0.5% in 2025.
Latvia: Inflows fell to 0.8% of GDP in 2025 from 3.3% in 2024. Lithuania attracted inflows of 4.7% of GDP in 2025.
Cyprus: Net inflows reached 54.2% of GDP in 2025, reversing net withdrawals of 49.6% in 2024.

These countries show an uneven foreign investment picture in the euro area, with weaker flows in Belgium, Estonia and Latvia contrasting with a rebound in Cyprus.