Global foreign direct investment flows decline by 18%: UNCTAD in 2012

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Flags of countries with the most foreign direct investment

Global foreign direct investment (FDI) flows declined by 18 per cent in 2012, according to the UN Conference on Trade and Development (UNCTAD).

In its latest Global Investment Trends and Prospects report, UNCTAD says these flows are close to the lowest level reported in 2009.

James Zhan, Director of the Division on Investment and Enterprise at UNCTAD, says the global FDI recovery has derailed.

"We saw in 2009 the lowest level of global FDI flows. That was slightly over $1.2 trillion in 2009. Now we are 1.3 trillion and  if it is compared with 2011 global FDI that was $1.6 trillion. We thought it was on a healthy steady recovery and now we feel that it will take a longer time than we have expected for the recovery of the global FDI."(30")

Mr. Zhan says the decline in FDI flows is mainly due to the macroeconomic fragility and policy uncertainties for the investors.

Dianne Penn, United Nations.

Duration: 1'12"

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