Dear Members of the World Investment Network (WIN),

It is my pleasure to share with you the latest issue of UNCTAD's Global 
Investment Trends Monitor:

The key message: Developing and transition economies absorbed more than 60 
per cent of global FDI inflows –  a record share – in the first half of 

Global foreign direct investment (FDI) inflows were an estimated US$745 
billion in the first half of 2013; 4% higher than the same period in 2012, 
with a diverging trend between developing and transition economies, and 
developed countries.

In the first half of 2013, flows to developed countries declined. However, 
this decline was more than offset by a rise in flows to developing and 
transition economies, which accounted for more than 60% of global FDI 
flows – a record share. 

In developing and transition economies, the increase was driven by 
acquisitions in Central America and the Caribbean as well as record 
inflows into the Russian Federation. Although flows to developing Asia 
fell slightly, the region continues to absorb more than half of the FDI 
directed to developing economies as a group, and one quarter of global FDI 

The fall in developed countries is mainly accounted for by declines in the 
major host countries including the United States, France and Germany. The 
United Kingdom remains an exception, continuing its upward trend in FDI 
attraction, and becoming the world's largest recipient of FDI in this 

Cross-border mergers and acquisitions (M&As) and large retained earnings 
kept in foreign affiliates were a driving force behind the current global 
FDI growth, rather than investment in new productive assets through 
greenfield investment projects. 

UNCTAD estimates that 2013 FDI flows will remain close to the 2012 level, 
despite some improvement in macroeconomic conditions in developed 
economies. In addition to risks related to the Euro area and the so-called 
"fiscal cliff" in the United States, the transition to a slower growth 
pattern in some emerging markets and weaker consumer demand in developed 
countries might have a negative impact on FDI flows this year. Looking 
further ahead, UNCTAD forecasts that global FDI flows are poised to 
increase in 2014. 

For the latest issue of the Global Investment Trends Monitor and the 
UNCTAD Investment Policy Monitor, please click here. For the latest World 
Investment Report, please click here. 

James Zhan 
Investment & Enterprise Division 
United Nations Conference on Trade & Development 
Palais des Nations, Geneva 
Tel: +41 22 9175797