January 23, 2013 – Macroeconomic fragility and policy uncertainty for investors has led to an 18 per cent decline in global foreign direct investment (FDI) inflows last year, to an estimated $1.3 trillion, the United Nations said in a new report released today.
The Global Investment Trends Monitor, published by the UN Conference on Trade and Development (UNCTAD), added that the 2012 figure is close to that of 2009, when FDI flows reached their lowest level of just slightly over $1.2 trillion.
Global FDI had started to recover, reaching $1.6 trillion in 2011, according to the agency, which noted that it peaked in 2007, when it was close to $2 trillion.
“We thought it was a healthy, steady recovery and now we feel that it will take longer than we expected for the recovery of FDI,” said James Zhan, Director of UNCTAD’s Division on Investment and Enterprise, who added there was “cautious optimism” for this year and next.
“Our estimate is that in 2013 global FDI may grow by around 7 to 8 per cent and in 2014 something like 17 per cent,” he told a news conference in Geneva. “Having said that, we really feel that the risks are quite strong. Many macroeconomic problems have been contained but not resolved, and they can pop up anytime.”...MORE