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Area Development

Worldwide Foreign Direct Investment Shows Widespread Growth

10/17/2007
Global foreign direct investment (FDI) for the year 2006 rose more than 38 percent over 2005, with inflows of more than US$1.3 trillion, according to the United Nations Conference on Trade and Development's (UNCTAD) World Investment Report 2007. The report finds that the growth occurred in all there groups of economies - developed countries, developing countries, and the transition economies of Southeast Europe and the Commonwealth of Independent States. Among developed countries, the FDI inflow reached US$857 billion, a 45 percent increase over 2005, with the United States regaining its position as the leading host country for FDI, followed by the United Kingdom and France. In developing nations, FDI rose to US$379 billion, a 21 percent increase, with China, Hong Kong, and Singapore leading the inflows. In the transitional economies, a 68 percent increase to US$69 billion was led by the Russian Federation. The report predicts that FDI will continue to increase in 2007, albeit at a slower growth rate than in 2006.

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