Dear Members of the World Investment Network (WIN),

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

The key message: Global FDI rose by 11%; developed economies are trapped 
in a historically low share.

·       Global foreign direct investment (FDI) inflows rose by 11% in 
2013, to an estimated US$1.46 trillion – a level comparable to the 
pre-crisis average – reaching the upper range of UNCTAD's forecast.

·       FDI flows to developed countries remained at a historically low 
share of global total FDI flows (39%) for the second consecutive year. 
They increased by 12% to US$576 billion, but only to 44% of their peak 
value in 2007. FDI to the European Union (EU) increased, while flows to 
the United States continued their decline.

·       FDI flows to developing economies reached a new high of US$759 
billion, accounting for 52% of global FDI inflows in 2013. At the regional 
level, flows to Latin America and the Caribbean, and Africa were up; 
developing Asia, with its flows at a level similar to 2012, remained the 
largest host region in the world.

·       FDI inflows to transition economies also recorded a new high of 
US$126 billion – 45% up from the previous year, accounting for 9% of 
global FDI inflows.

·       Among major regional and inter-regional groupings, APEC and BRICS 
almost doubled their share of global FDI inflows over the past ten years. 
APEC now accounts for more than half of global FDI flows, on a par with 
the G20, while BRICS jumped to over one fifth. In ASEAN and MERCOSUR, the 
level of FDI inflows doubled compared to the pre-crisis level. 

·       The three mega regional integration initiatives – TTIP, TPP and 
RCEP – show diverse FDI trends. The combined share in global FDI inflows 
of the United States and the EU, which are negotiating the formation of 
TTIP, nearly halved from 56% ten years ago to 30% in 2013. The share in 
global FDI inflows of the 12 countries participating in the TPP 
negotiations was 28% in 2013, markedly smaller than their share in world 
GDP of 40%. RCEP, which is being negotiated between the ten ASEAN Member 
States and their six FTA partners, accounted for more than 20% of global 
FDI flows in recent years, nearly twice as large as at the pre-crisis 

·       UNCTAD forecasts that FDI flows will rise gradually in 2014 and 
2015, to US$1.6 trillion and US$1.8 trillion respectively, as global 
economic growth gains momentum which may prompt investors to turn their 
cash holdings into new investments. However, uneven levels of growth, 
fragility and unpredictability in a number of economies, and the risks 
related to the tapering of quantitative easing measures could dampen the 
FDI recovery. 

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. 

Please note that the UNCTAD World Investment Forum 2014 will take place in 
the Palais des Nations, Geneva, 13-16 October 2014. 

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