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.
World Investment Report 2012: Towards a New Generation of Investment Policies
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 inflows in 2011. The increase was driven by East and SouthEast Asia and Latin America. East and South-East Asia still accounted for almost half of FDI in developing economies. Inflows to the transition economies of South-East Europe, the Commonwealth of Independent States (CIS) and Georgia accounted for another 6 per cent of the global total. The rise in FDI outflows was driven mainly by the growth of FDI from developed countries. The growth in outflows from developing economies seen in the past several years appeared to lose some momentum in 2011 because of significant declines in flows from Latin America and the Caribbean and a slowdown in the growth of investments from developing Asia (excluding West Asia). FDI inflows to the structurally weak, vulnerable and small economies bounced back from $42.2 billion in 2010 to $46.7 billion in 2011, owing to the strong growth in FDI to LLDCs (table II.1). However, the improvement in their share was hardly visible, as FDI inflows to both LDCs and SIDS continued to fall.
Table II.1. FDI flows, by region, 2009–2011 (Billions of dollars and per cent) Region World Developed economies Developing economies Africa East and South-East Asia South Asia West Asia Latin America and the Caribbean Transition economies Structurally weak, vulnerable and small economiesa LDCs LLDCs SIDS Memorandum: percentage share in world FDI flows Developed economies Developing economies Africa East and South-East Asia South Asia West Asia Latin America and the Caribbean Transition economies Structurally weak, vulnerable and small economiesa LDCs LLDCs SIDS 2009 1 197.8 606.2 519.2 52.6 206.6 42.4 66.3 149.4 72.4 45.2 18.3 28.0 4.4 50.6 43.3 4.4 17.2 3.5 5.5 12.5 6.0 3.8 1.5 2.3 0.4 FDI inflows 2010 1 309.0 618.6 616.7 43.1 294.1 31.7 58.2 187.4 73.8 42.2 16.9 28.2 4.2 47.3 47.1 3.3 22.5 2.4 4.4 14.3 5.6 3.2 1.3 2.2 0.3 2011 1 524.4 747.9 684.4 42.7 335.5 38.9 48.7 217.0 92.2 46.7 15.0 34.8 4.1 49.1 44.9 2.8 22.0 2.6 3.2 14.2 6.0 3.1 1.0 2.3 0.3 2009 1...