Regional Trends in Fdi
REGIONAL TRENDS IN FDI
CHAPTER II
Salient features of 2011 FDI trends by region include the following: • Sub-Saharan Africa drew FDI not only to its natural resources, but also to its emerging consumer markets as the growth outlook remained positive. Political uncertainty in North Africa deterred investment in that region. • FDI inflows reached new record levels in both East Asia and South-East Asia, while the latter is catching up with the former through higher FDI growth. • FDI inflows to South Asia turned around as a result of higher inflows to India, the dominant FDI recipient in the region. • Regional and global crises still weigh on FDI in West Asia, and prospects remain unclear. • South America was the main driver of FDI growth in Latin America and the Caribbean. The pattern of investment by traditional investors – Europe and the United States – is changing, while there has been an advance in FDI from developing countries and Japan. A recent shift towards industrial policy in major countries may lead to investment flows to targeted industries. • FDI flows to economies in transition recovered strongly. They are expected to grow further, partly because of the accession of the Russian Federation to the World Trade Organization (WTO). • The search for energy and mineral resources resulted in cross-border megadeals in developed countries, but the eurozone crisis and a generally weak outlook still cloud investor sentiment. • FDI inflows to the structurally weak, vulnerable and small economies were mixed. While FDI to landlocked developing countries (LLDCs) grew strongly, inflows to least developed countries (LDCs) and small island developing States (SIDS) continued to fall.
38
World Investment Report 2012: Towards a New Generation of Investment Policies
INTRODUCTION
In 2011, FDI inflows increased in all major economic groups − developed, developing and transition economies (table II.1). Developing countries accounted for 45 per cent of global FDI
CHAPTER II
Salient features of 2011 FDI trends by region include the following: • Sub-Saharan Africa drew FDI not only to its natural resources, but also to its emerging consumer markets as the growth outlook remained positive. Political uncertainty in North Africa deterred investment in that region. • FDI inflows reached new record levels in both East Asia and South-East Asia, while the latter is catching up with the former through higher FDI growth. • FDI inflows to South Asia turned around as a result of higher inflows to India, the dominant FDI recipient in the region. • Regional and global crises still weigh on FDI in West Asia, and prospects remain unclear. • South America was the main driver of FDI growth in Latin America and the Caribbean. The pattern of investment by traditional investors – Europe and the United States – is changing, while there has been an advance in FDI from developing countries and Japan. A recent shift towards industrial policy in major countries may lead to investment flows to targeted industries. • FDI flows to economies in transition recovered strongly. They are expected to grow further, partly because of the accession of the Russian Federation to the World Trade Organization (WTO). • The search for energy and mineral resources resulted in cross-border megadeals in developed countries, but the eurozone crisis and a generally weak outlook still cloud investor sentiment. • FDI inflows to the structurally weak, vulnerable and small economies were mixed. While FDI to landlocked developing countries (LLDCs) grew strongly, inflows to least developed countries (LDCs) and small island developing States (SIDS) continued to fall.
38
World Investment Report 2012: Towards a New Generation of Investment Policies
INTRODUCTION
In 2011, FDI inflows increased in all major economic groups − developed, developing and transition economies (table II.1). Developing countries accounted for 45 per cent of global FDI