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Dear Colleagues, UNCTAD has just released its World Investment Report 2017. The Report: · presents FDI trends and prospects at global, regional and national level, as well as by sector; · analyses the latest developments in national policy measures for investment promotion, facilitation and regulation globally; · highlights the trends in investment treaties and investment dispute settlement, and presents 10 options for further reform of the investment treaty regime. The 2017 edition, subtitled "Investment and the Digital Economy", investigates the internationalization patterns of digital MNEs, as well as the digitalization effect on global companies across industries and on global value chains. It also provides insights to policymakers on the effect of the digital economy on investment policies and how investment policy can support digital development. Below are the report’s key findings on global FDI trends and prospects: · Modest recovery seen in global investment, with projections for 2017 cautiously optimistic. Better growth prospects and a recovery in trade and corporate profits should prop up FDI going forward. Global flows are forecast to increase to almost $1.8 trillion in 2017, and notch up to $1.85 trillion in 2018 – still below the 2007 peak, however. Policy uncertainty and geopolitical risks could still deter the recovery. · FDI prospects are moderately positive for most regions, except Latin America and the Caribbean: 1) Developing economies as a group are expected to gain some 10 per cent, led by developing Asia, where the improved outlook is likely to boost investor confidence. FDI to Africa is also expected to increase on the back of a projected modest rise in oil prices and advances in regional integration. In contrast, prospects for FDI in Latin America and the Caribbean are muted, with the macroeconomic and policy outlook uncertain. 2) Flows to transition economies are likely to continue their recovery after these economies bottomed out in 2016. 3) Flows to developed economies are expected to hold steady in 2017. · After a robust recovery in 2015, global FDI lost growth momentum in 2016, showing the road to recovery is still riddled with potholes. 2016 saw 2 per cent trimmed off FDI inflows, to reach $1.75 trillion, amid weak growth and considerable policy risks, in the eyes of multinational enterprises (MNEs). · Flows to developing economies were especially hard hit, with a decline of 14 per cent to $646 billion. Nevertheless, FDI remains the largest and most stable external source of finance for developing economies. Best regards, James X. Zhan Director, Investment and Enterprise Lead, World Investment Report United Nations Conference on Trade & Development Palais des Nations, Geneva www.unctad.org/wir investmentpolicyhub.unctad.org