Global foreign direct investment rises to pre-crisis levels: UN reports
Xinhua, United Nations :
Global foreign direct investment (FDI) rose to levels not seen since the start of the global economic crisis in 2008, increasing by 11 percent in 2013 to an estimated 1.46 trillion U.S. dollars, with the lion’s share going to developing countries, said a UN report released Tuesday.
FDI flows to developing economies reached a new high of 759 billion dollars, accounting for 52 percent, and transition economies also recorded a new high of 126 billion dollars, 45 percent up from the previous year and accounting for 9 percent of the global total, showed the figures provided by the UN Conference on Trade and Development.
But developed countries remained at a historical low, or 39 percent, for the second consecutive year. They increased by 12 percent to 576 billion dollars, but only to 44 percent of their peak value in 2007, with FDI to the European Union (EU) increasing, while flows to the United States continued their decline.
Although inflows to developed countries appear to be recovering over 2012, the picture is mixed: despite positive signs of recovery in some developed country regions such as parts of the EU, flows to the United States failed to reverse their decline, contrary to other signs of economic recovery over the past year, said the report.
Inflows to Japan rose by 61 percent to 2.8 billion dollars, but Australia and New Zealand saw sharp declines of 28 percent to 40 billion dollars and 75 percent to 0.5 billion dollars, respectively, it said.
The increase for developing economies was mainly driven by Latin American and the Caribbean, and Africa, while developing Asia, the world’s largest recipient region for FDI, saw flows at a level similar to 2012, the report said.
Total inflows to developing Asia, comprising East Asia, South Asia, South-East Asia and West Asia, amounted to an estimated 406 billion dollars in 2013, a level similar to 2012.
The performance of sub-regions continues to diverge, with FDI growth rates ranging between 3 percent in South Asia (33 billion dollars), 2 percent in South-East Asia (116 billion dollars), 1 percent in East Asia (219 billion dollars) and a drop of 20 percent in West Asia (down to 38 billion dollars).