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 which
discusses Outward Investments by TNCs in 2013 and Prospects for 2014-15.
The key message: Investment by South TNCs reached a record level; acquiring
developed country foreign affiliates located in the developing world.
- Investment activity abroad by transnational
corporations (TNCs) from developing economies continued to grow in 2013,
reaching a record level of US$460 billion. Together with those from transition
economies (US$100 billion) they now account for 39% of global foreign direct
investment (FDI) outflows.
- Developed country TNCs' investment was virtually
on par with investment activity of the previous year € US$858 billion €
remaining 55% off their peak in 2007. Investments by TNCs from North America
slid by 10%, while those from Europe gained 10% in 2013. Japanese
investments abroad grew for the third successive year to reach a record
level, retaining their position as the second largest investor in the world.
- Almost half of FDI from developing and transition
economy TNCs was in equity, while developed country TNCs continued to hold
large amounts of cash reserves in their foreign affiliates as part of reinvested
earnings. The latter were at record levels of 67% of total FDI outflows
from developed countries.
- In 2013, the value of cross-border M&A
purchases increased by 5% to US$349 billion largely owing to increased
acquisitions by TNCs from developing and transition economies. They captured
a 56% share of global cross-border M&As.
- More than two-thirds of cross-border M&As
by South TNCs were directed to developing and transition economies. Half
of these were acquisitions of foreign affiliates owned by developed country
TNCs. This led to a change of ownership of foreign affiliates operating
in developing and transition economies into the hands of South TNCs.
- UNCTAD estimates that the TNC investment
appetite will increase in 2014 and 2015, encouraged by improving economic
prospects, especially in developed economies. However, TNCs remain guarded
due to the fragility in some emerging markets, and to risks related to
policy uncertainties and regional conflicts.
For the latest issue of the Global Investment Trends Monitor and the UNCTAD
Investment Policy Monitor, please click
here. For the latest publication
on UNCTAD's Bilateral FDI Statistics, 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
Director
Investment & Enterprise Division
United Nations Conference on Trade & Development
Palais des Nations, Geneva
Tel: +41 22 9175797
www.unctad.org/diae
