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
