Global FDI flows may increase by 5.0 pc this year

FE Online Report | Published: June 18, 2018 14:48:33 | Updated: June 22, 2018 11:55:29


After a big drop in the past year, inflows of foreign direct investment (FDI) in the current year may increase by 5.0 per cent across the world.

United Nations Conference on Trade and Development (UNCTAD) made the projection in its World Investment Report (WIR) 2018, released during the first week of this month.

Inflows of FDI worldwide dropped to $1.43 trillion 2017, which was down by 23 per cent from $1.87 trillion in the past year or 2016.

The UNCTAD has projected that inflows of global FDI may reach $1.50 trillion in 2018.

FDI inflows to Africa may increase by about 20 per cent in the current year to $50 billion. The region received $42 million as FDI in the past year.

In developing Asia, FDI inflows are expected to remain stagnant at around $470 billion, according to the WIR 2018.

It also predicted a decline in the FDI flow into Latin America and the Caribbean saying that the amount may decrease to some $140 billion in the current year, which was $151 billion in 2017.

The UNCTAD’s primary projections also showed that FDI flows into transition economies to rise by about 20 per cent to $55 billion in the current year.

The FDI flows into developed countries are also projected to increase to about $770 billion in 2018.

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