Dear Members of the World Investment Network
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.
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.
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.
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.
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.
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.
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 level.
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
Please note that the UNCTAD
World Investment Forum 2014 will take
place in the Palais des Nations, Geneva, 13-16 October 2014.
Investment & Enterprise Division
United Nations Conference on Trade &
Palais des Nations, Geneva
Tel: +41 22 9175797