- News>
- World
Global FDI flows likely to rebound next year
New York, Sept 04: Global Foreign Direct Investment (FDI) flows this year are set to stabilize at around depressed levels seen last year but a rebound is likely next year, according to a UN report.
New York, Sept 04: Global Foreign Direct Investment (FDI) flows this year are set to stabilize at
around depressed levels seen last year but a rebound is likely next year, according to a UN report.
Last year's total of 651 billion dollars was just half of the record volume of 2000 and the decline was broad-based as 108 of the 195 economies saw lower inflows last compared to a year earlier, the world investment reports says.
Global FDI inflows, already down by more than 40 per cent in 2001, fell by another 21 per cent to 651 billion dollars last year. Outflows were also down in 73 of 151 countries, says the report prepared by the United Nations Conference on Trade and Development (UNCTAD). At 120 billion dollars, united states outflows rose last year by 15 per cent from 2001 while European Union (EU) outflows at 394 billion dollars showed a decrease of 13 per cent and Japan's at 31 billion dollars were down by 18 per cent.
However, FDI from Central and Eastern Europe (CEE) climbed by 700 million dollars to 4.2 billion dollars with Russia the largest investor in the region. Driving the decline in FDI flows in 2001-2002, the most significant downturn in past three decades, the reports says, was a combination of macroeconomic, microeconomic and institutional factors.
The macroeconomic factors included weak economic growth or slump in economic activity linked to the business cycles in many parts of the world, especially developed countries and tumbling stock markets.
Bureau Report
Global FDI inflows, already down by more than 40 per cent in 2001, fell by another 21 per cent to 651 billion dollars last year. Outflows were also down in 73 of 151 countries, says the report prepared by the United Nations Conference on Trade and Development (UNCTAD). At 120 billion dollars, united states outflows rose last year by 15 per cent from 2001 while European Union (EU) outflows at 394 billion dollars showed a decrease of 13 per cent and Japan's at 31 billion dollars were down by 18 per cent.
However, FDI from Central and Eastern Europe (CEE) climbed by 700 million dollars to 4.2 billion dollars with Russia the largest investor in the region. Driving the decline in FDI flows in 2001-2002, the most significant downturn in past three decades, the reports says, was a combination of macroeconomic, microeconomic and institutional factors.
The macroeconomic factors included weak economic growth or slump in economic activity linked to the business cycles in many parts of the world, especially developed countries and tumbling stock markets.
Bureau Report