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