Translation. Region: Russian Federation –
Source: United Nations – United Nations –
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September 17, 2009
Global foreign direct investment (FDI) flows will decline from $1.7 trillion in 2008 to $1.2 trillion in 2009. A slow recovery is expected in 2010, but overall, the outlook for FDI remains unfavorable, according to the annual World Investment Report 2009, prepared by the United Nations Conference on Trade and Development (UNCTAD).
In 2010, FDI inflows will amount to no more than $1.4 trillion, but in 2011 investment volumes will pick up speed and approach $1.8 trillion.
FDI flows to developed countries, where the financial crisis began, declined significantly already in 2008. However, investment flows to developing countries and countries with transition economies in Southeastern Europe and the Commonwealth of Independent States (CIS) continued to increase last year. This was partly due to the delayed impact of the crises on these countries' economies.
In 2008, FDI inflows to developing countries increased by 17% to US$621 billion, with approximately half of these flows coming from South, East, and Southeast Asia. The largest percentage increase was recorded in Africa (27%). Least developed countries attracted a record US$33 billion in FDI in 2008.
The transition economies of Southeastern Europe and the CIS also set a new record: in 2008, investment inflows into them reached $114 billion.
FDI inflows to developed countries in 2008 decreased to $962 billion, i.e. by 29% compared to the previous year.
Despite this, the United States and France remained the most attractive destinations for investors. China, the United Kingdom, and Russia also joined the list. The report's authors believe that the emergence of China and Russia among the top five investment recipients is evidence of a changing nature of FDI flows.
In 2009, FDI volumes began to decline in all regions.
Outward FDI from developed countries declined less sharply in 2008 than inward investment. The United States retained its position as the largest source of FDI. France took second place. Japan was among the top five largest investor countries. Russia and China were among the top twenty.
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