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AIB 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 2013 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 flows. 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 period. 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 Director Investment & Enterprise Division United Nations Conference on Trade & Development Palais des Nations, Geneva Tel: +41 22 9175797