UNCTAD prediction of global FDI this year will be reduced by 30% to 40%

United Nations Conference on trade and development (UNCTAD) 17, published the 2009 World Investment report forecasts that the global economy and the continuing impact of the financial crisis, the 2009 global foreign direct investment will more than 30% in 2008 down to 40%.

Reported that in 2008, global FDI inflows compared to the previous year dropped by 14%, falling to 1.7 trillion. The downward trend in 2009, is expected to be more significant decrease 30% to 40%. In the global economic recovery, growth, States continue to avoid protectionism, the 2010 foreign direct investment (FDI) is expected to slow rebound to 1.4 trillion, 2011 will further rebounded to close 1.8 trillion.

The report states that led to the decline in global foreign direct investment is one of the reasons for the withdrawal of transnational corporations continue to reduce costs and meet the corporate reorganization, this is 2008 and 2009 is particularly evident in early; in addition, the financial market constraints and transnational corporations cash shortages, the substantial reduction in the cross-border mergers and acquisitions, cross-border mergers and acquisitions in 2008 amounted to 35% less, 2009 will further reduce. In the first half of 2009, the global cross-border mergers and acquisitions amounts to only 1200 billion dollars, and the full year 2008 as 6700 million.

The report finds that the current crisis has also changed the culture of foreign direct investment. In 2008, developing and transition economies inflows while the growth rate compared with the previous year slowed, but still maintain a constant growth trend, the total amount of the total global FDI inflows rose significantly in proportion to 43%. 2008 foreign use amount to reside in the global top 20 bit, half as emerging economies. South Asia, East Asia, Southeast Asia, Oceania and South-Eastern Europe and the CIS countries with transition economies inflow of foreign capital have set a new record. Africa's foreign investment flows have also increased significantly, reaching a record $ 880. West Asia, Latin America and Caribbean region has considerable growth.