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Global_17

Inbox VITAL STATISTICS Behind the numbers Capital investments Foreign direct investment (FDI) – when companies or individuals based in one country invest in business based in another – is up by four per cent compared to this time last year. The United Nations Conference on Trade and Development estimates that FDI reached US$745 billion in the fi rst half of 2013 Investment in developing economies, particularly Central America and the Caribbean, rose by nine per cent and accounted for 60 per cent of the global total. However, FDI in most developed economies has declined since its peak fi ve years ago. Bucking the trend was the UK as the leading recipient of FDI for the fi rst half of the year. This is attributed to large deals between transnational corporations adding to already substantial investments by American and Dutch fi rms. China is the second-largest recipient of FDI, a result of increased investment in real estate and other services. And although FDI in the USA is half of its 2008 total, worldwide it is the third most popular country in which to invest. Currently, the largest share of global investment capital resides with the USA and Europe, but this is set to change. The World Bank predicts that by 2030 developing economies will see their current share of investment stock triple – from 20 to 60 cents in every dollar invested – with countries from East Asia and Latin America being the biggest investors. Top ten host economies: FDI infl ows Top 25 investor countries: FDI outward stock 2012 Developing and transition economies Developed economies Rank 2013 10 9 8 7 6 5 4 3 2 1 Rank 2012 7 8 6 9 3 12 5 1 2 4 Singapore Ireland Brazil Canada Hong Kong Russian Federation British Virgin Islands United States China United Kingdom 6 5 4 3 2 1 0 USA UK Germany France Hong Kong Switzerland Japan Belgium Netherlands Canada Spain Italy China British Virgin Is. Australia Russian Fed. Sweden Singapore Ireland Brazil Denmark Taiwan Norway Austria Luxembourg US$ trillions 0 10 20 30 40 50 60 70 80 US$ billions Source: UNCTAD: Global Investment Trends Monitor no 13 Source: UNCTAD: Global Investment Trends Monitor no 13 Who’s investing in the top three? The UK, China and the USA attracted the highest fi nancial infl ows for the fi rst half of last year. Which countries are investing in them? FDI in the UK FDI in China FDI in the USA 27% 16% 6% 8% 18% 6% 2% 3% 4% 5% 5% USA Netherlands France Germany Luxembourg Spain Switzerland Japan Hong Kong Canada Rest of the world 70% 2% 3% 3% 5% 6% 8% Hong Kong Japan Singapore Taiwan Province USA Republic of Korea Germany Holland France Thailand 20% 18% 16% 6% 12% 11% 12% 5% Switzerland UK All others Japan France Germany Netherlands Canada Source: Of ce of National Statistics, 2013 Source: Ministry of Commerce, People’s Republic of China Source: US Department of Commerce, Bureau of Economic Analysis 10 l www.global -br ief ing.org f i rst quar ter 2014 global


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