Investment trends and prospects for LDCs, LLDCs and SIDS: UNCTAD's Global Investment Trends Monitor
CUTS-TradeForum
From: CUTS International
Investment trends and prospects for LDCs, LLDCs and SIDS: UNCTAD's Global Investment Trends Monitor
UNCTAD has just released the latest issue of its Global Investment Trend Monitor, on the occasion of the High-Level Forum on Finance for Development this week in New York.
The key finding: FDI to the vulnerable economies – LDCs, LLDCs and SIDS – all declined in 2016, with possible modest recovery in 2017.
· Foreign direct investment (FDI) flows to structurally weak, vulnerable and small economies declined in 2016, although some groups were less affected than others. Their share in the world total shrank from 3.6 per cent in 2015 to 3.3 per cent.
· After a high of $44 billion in 2015, flows to the 48 least developed countries (LDCs) retreated by 13 per cent to $38 billion. FDI to commodity-rich LDCs in Africa, notably Angola, Mozambique and Zambia, continued to decline, and flows to Asian LDCs slowed after a record year in 2015.
· FDI flows to the 32 landlocked developing countries (LLDCs) slipped by 2 per cent to $24 billion. LLDCs remain marginal in the global foreign direct investment scene, accounting for less than 2 per cent of the world’s inflows.
· The already fragile FDI flows to small island developing States (SIDS) fell further in 2016, representing merely 0.2 per cent of global flows.
· FDI has become the most important component of development finance for LLDCs and SIDS, while official development assistance (ODA) tends to dominate external financial flows to LDCs, including FDI.
· Investors from developing economies, led by China, continue to actively expand into LDCs and LLDCs. In fact, China’s outward FDI became three times as much as the second largest investing economy. Developing economies accounted for seven of the top 10 investors in SIDS.
· In 2017, FDI flows to LDCs are expected to recover. Investments related to oil and gas will continue to drive overall FDI inflows, although the group has the potential to attract more investment in manufacturing and services. FDI prospects in LLDCs warrant cautious optimism. A recovery hinges on the evolution of both commodity prices and political issues. The prospects for attracting more FDI to SIDS remain challenging.
For the various issues of the Global Investment Trends Monitor and the Investment Policy Monitor, please click here. An in-depth analysis of FDI trends will feature in the forthcoming World Investment Report 2017, to be published on 7 June 2017.
With kind regards,
James X. Zhan
Director, Investment and Enterprise
Lead, World Investment Report
United Nations Conference on Trade & Development
Palais des Nations, Geneva
investmentpolicyhub.unctad.org
YOU HAVE RECEIVED THIS MAIL BECAUSE YOU ARE A MEMBER OF THIS E-FORUM. IF YOU WISH TO UNSUBSCRIBE FROM THIS E-FORUM, SEND AN EMAIL TO CI...@CUTS.ORG WITH ‘UNSUBSCRIBE – CUTS-TRADE FORUM’ IN THE SUBJECT.
- - - - - - - - - - - - - - - - - - - - -
CUTS E-GROUP FORUMS
FunCompForum for news and views on Economic Policy & Governance Issues in India
CompetitiOnlineForum for International Competition, Investment and Regulation news and views
CUTSTradeForum for International Trade & Development news and views
CUTS-SouthAsia to discuss Trade and Economic (including Competition and Investment and Regulations) issues and challenges in South Asia
CUTSConsumersUp for Consumer Empowerment in India to take the consumer movement forward
CUTSGovForum to discuss news and views on Governance issues and challenges in India