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Investment Indicators:
Global
FDI Reaches New Record in 2007
Global foreign direct investment (FDI) inflows grew in 2007 to an estimated $1.5 trillion, surpassing the previous record set in the year 2000, UNCTAD investment experts have announced.
UNCTAD said FDI continued to rise in all of three groups of economies: developed countries, developing economies and in South-East Europe and the Commonwealth of Independent States (CIS).
FDI flows to developed countries in 2007 grew for the fourth consecutive year, reaching $1 trillion. Flows were particularly buoyant in the United Kingdom, France, and the Netherlands. The United States maintained its position as the largest single FDI recipient. The European Union (EU) as a whole continued to be the largest host region, attracting almost 40% of total FDI inflows in 2007.
FDI inflows to developing countries and economies in transition (the latter comprising South-East Europe and CIS) rose by 16% and 41%, respectively, and reached new record levels.
In Africa, FDI inflows in 2007 remained relatively strong. The unprecedented level of inflows was supported by a continuing boom in global commodity markets. Cross-border M&A in the extraction and related service industries of Africa remained a significant source of FDI. Egypt, Morocco, and South Africa were the main beneficiaries of FDI inflows.
FDI inflows to Latin America and the Caribbean, meanwhile, rose by 50% to a record level of $126 billion. Significant increases were recorded in the region's major economies, especially Brazil, Chile and Mexico, where inflows doubled. This strong FDI growth was driven by greenfield investments (new investments and expansion) rather than cross-border M&As.
FDI inflows to South, East and South-East Asia, and Oceania maintained their upward trend in 2007, reaching a new high of $224 billion, an increase of 12% over 2006. More than half of all FDI to developing countries went to these economies. At the subregional level, there was a further shift towards South and South-East Asia, although China and Hong Kong remained the two largest recipients in the region.
In West Asia, overall FDI inflows declined by 12%. Turkey and the Gulf States continued to attract the most.
FDI to South-East Europe and the CIS, or transition economies, expanded significantly, by 41%, to a new record of $98 billion. This was the seventh year of uninterrupted growth of FDI in the region. Inflows almost doubled to the region’s largest recipient, the Russian Federation, while resource-rich countries received more than in 2006.
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