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
- 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
An in-depth analysis of FDI trends will feature in the forthcoming World
Investment Report 2015, to be published in June 2015.
Director, Investment and
Palais des Nations, Geneva
(World Investment Reports)
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