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UN World Investment Report 2010 - Office of Trade Negotiations

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I<br />

GLOBAL<br />

TRENDS IN FDI<br />

CHAPTER I<br />

Global foreign direct investment (FDI) flows began to bottom out in the latter half <strong>of</strong> 2009. This<br />

was followed by a modest recovery in the first half <strong>of</strong> <strong>2010</strong>, sparking some cautious optimism<br />

for FDI prospects in the short term. In the longer term, the recovery in FDI flows is set to gather<br />

momentum. Global inflows are expected to pick up to over $1.2 trillion in <strong>2010</strong>, rise further to<br />

$1.3–1.5 trillion in 2011, and head towards $1.6–2 trillion in 2012. These FDI prospects are,<br />

however, fraught with risks and uncertainties, including the fragility <strong>of</strong> the global economic<br />

recovery.<br />

Some major changes in global FDI trends will most likely gain momentum in the short and<br />

medium term:<br />

•<br />

•<br />

•<br />

Developing and transition economies absorbed half <strong>of</strong> global FDI flows in 2009 and<br />

their relative weight as both FDI destinations and sources is expected to increase<br />

further, as they are leading the FDI recovery.<br />

Services and the primary sector continue to capture an increasing share <strong>of</strong> FDI.<br />

FDI stock and assets continued to increase despite the toll taken by the crisis on<br />

TNCs’ sales and value added.

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