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Dear Colleagues, It is my pleasure to share with you UNCTAD’s Global Investment Prospects Assessment 2016–2018. Global foreign direct investment (FDI) flows are expected to decline by 10–15 per cent in 2016, reflecting the fragility of the global economy and the persistent weakness of aggregate demand, sluggish growth in some commodity exporting countries and a slump in multinational enterprises (MNE) profits in 2015. Over the medium term, global FDI flows are projected to resume growth in 2017 and to surpass $1.8 trillion in 2018, but they will remain lower than the pre-crisis peak. FDI prospects remain muted in most regions, although there are some bright spots. FDI inflows to Africa are likely to return to a growth path as a result of liberalization measures and planned privatizations. Flows to developing Asia are expected to decline in 2016 by about 15 per cent, returning to 2014 levels. Latin America and the Caribbean may see their FDI slow down further in 2016 as challenging macroeconomic conditions persist. After the significant decline recorded in 2015, FDI flows to transition economies are expected to increase modestly in 2016. The recovery of FDI activity in developed economies recorded in 2015 is unlikely to be sustained in 2016. Diverging trends in FDI prospects of some megagroupings. UNCTAD forecasts that FDI flows to G20 members could decline by 5 to 10 per cent in 2016, falling to $830–880 billion. FDI flows to APEC members are expected to fall by 15 to 20 per cent to $760–810 billion, reverting to normal patterns after unusually high expansion in a number of economies in 2015. Flows to BRICS countries could return to growth, increasing by an average of 10 per cent to $270–290 billion. Overall, expectations about short term FDI flows are best described as mildly pessimistic with flows declining in both developing and developed economies. An in-depth analysis of global, regional and country level FDI trends, is available in the World Investment Report 2016. Best regards, James X. Zhan Director, Investment & Enterprise Team Leader, World Investment Report United Nations Conference on Trade & Development Palais des Nations, Geneva www.unctad.org/diae www.unctad.org/wir (World Investment Reports)