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Dear Sir and Madam,

UNCTAD has just issued the Global Investment Trend Monitor.

The key message: Global FDI flows declined in 2014; a solid FDI rise 
remains distant.

In 2014, global foreign direct investment (FDI) inflows declined by 8% to 
an estimated US$1.26 trillion, due to fragility of the global economy, 
policy uncertainty and geopolitical risks. A large divestment in the 
United States also reduced the global level of FDI flows. 

FDI flows to developed countries dropped by 14% to an estimated US$511 
billion, significantly affected by a large divestment in the United 
States. FDI flows to the European Union (EU) reached an estimated US$267 
billion; this represents a 13% increase on 2013, but is still only 
one-third of the 2007 peak. 

Flows to transition economies more than halved to US$45 billion as 
regional conflict, sanctions on the Russian Federation, and negative 
growth prospects deterred foreign investors (especially from developed 
countries) from investing in the region.

Developing economies saw their FDI inflows reach a new high of more than 
US$700 billion, 4% higher than 2013, with a global share of 56%. At the 
regional level, flows to developing Asia were up, those to Africa remained 
flat, while FDI to Latin America declined. 

In 2014, China, with an increase of 3%, became the world's largest 
recipient of FDI. The United States fell to the 3rd largest host country 
with almost a third of their 2013 level. Among the top five FDI recipients 
in the world, four are developing economies.

Cross-border mergers and acquisitions (M&As) rose by 19%, driven mainly by 
restructuring deals. Announced greenfield investment projects rose by 3% 
in 2014. 

A solid FDI rise remains distant. A subdued global economic outlook, 
volatility in currency and commodity markets and elevated geopolitical 
risks will negatively influence FDI flows. On the other hand, the 
strengthening of economic growth in the United States, the demand-boosting 
effects of lower oil prices and proactive monetary policy in the Eurozone, 
coupled with increased liberalization and promotion measures, will 
favourably affect FDI flows. 

For the latest issue of the Global Investment Trends Monitor and the 
UNCTAD Investment Policy Monitor, please click here. An in-depth analysis 
of FDI trends will feature in the forthcoming World Investment Report 
2015, to be published in June 2015.

Best regards,

James Zhan
Director, Investment and Enterprise 
UNCTAD
Palais des Nations, Geneva
Tel:+41229175797
www.unctad.org/diae
www.unctad.org/wir (World Investment Reports)

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