Dear Sir or Madam,
UNCTAD has just issued the Global
Investment Trend Monitor.
The key message: Investment by South TNCs reaches the highest level:
Developing Asia now invests more abroad than any other region.
- In 2014, transnational corporations
(TNCs) from developing economies alone invested almost half a trillion
US dollar abroad, a 30% increase from the previous year. Their share in
global foreign direct investment (FDI) reached a record of 36%, up from
12% in 2007, the year prior to the financial crisis.
- Developing Asia has become, for the
first time, the world's largest investor region with US$440 billion invested,
followed by North America (US$390 billion) and Europe (US$286 billion).
- In 2014, Hong Kong (China) and China
were the second and the third largest investors in the world, after the
United States. Among 20 largest investors, nine were from developing and
transition economies.
- Investments by developed country TNCs
were largely flat at US$792 billion, with the modest rise in flows from
North America and Europe more than offset by a 16% decline in Japanese
investment abroad.
- More than half of investments from TNCs
based in developing economies were in equity, while as much as four-fifths
of FDI outflows from developed country TNCs were in the form of reinvested
earnings − the result of record amounts of cash reserves in their foreign
affiliates.
- The value of cross-border merger and
acquisitions (M&As) surged to US$399 billion in 2014, 28% above 2013
levels. Megadeals dominated the scene in 2014. TNCs from the South continued
to acquire developed country foreign affiliates in developing world.
- Announced greenfield investment projects
rose by only 7% reaching US744 billion. The increase was driven mainly
by investments from TNCs of the South. Greenfield investors from developed
countries, however, account for a larger share (66%).
- UNCTAD estimates that TNC investment
appetite will improve, encouraged by better economic prospects, especially
in the United States, proactive monetary policy in the Eurozone and the
large cash holdings of companies. However, TNCs remain guarded due to the
fragility in some emerging markets, exchange rate volatility and increased
geopolitical tensions.
For the latest issue of the Global Investment Trends Monitor and the UNCTAD
Investment Policy Monitor, please click
here.
Final FDI data and an in-depth analysis of FDI trends will feature in the
forthcoming World Investment Report 2015, to be published on 24 June 2015.
Best regards,
James Zhan
Director, Investment and Enterprise
Head, World Investment Report team
UNCTAD
Palais des Nations, Geneva
Tel: 41229175797
www.unctad.org/diae
www.unctad.org/wir
(World Investment Reports)
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