Global foreign direct investment (FDI) inflows amounted to 1.3 trillion U.S. dollars in 2006, rising more than 38 percent over the previous year, the United Nations Conference on Trade and Development (UNCTAD) said on Tuesday.
In its annual world investment report, UNCTAD said the growth of FDI in 2006 was the largest since 2000 and occurred in all three groups of economies: developed countries, developing countries and the transition economies of South-East Europe and the Commonwealth of Independent States (CIS).
According to the report, the stock of FDI worldwide reached 12 trillion U.S. dollars in 2006. The rise in global FDI inflows reflected strong economic performance in many parts of the world and was partly driven by increasing corporate profits worldwide.
While FDI inflows in developed countries rose by 45 percent to reach 857 billion U.S. dollars, flows to developing countries and the transition economies attained their highest levels ever: 379 billion U.S. dollars (a 21 percent increase over 2005) and 69 billion U.S. dollars (a 68 percent increase), respectively.
The United States regained its position as the leading host country for FDI, with inflows of 178 billion U.S. dollars in 2006.Britain and France followed the United States with 140 billion U.S. dollars and 81 billion U.S. dollars respectively.
Among developing and transition economies, almost all regions and subregions enjoyed healthy growth in FDI flows in 2006.
The largest inflows to developing economies were to China, with69 billion U.S. dollars. Among transition economies, the largest inflows were to the Russian Federation, with 29 billion U.S. dollars.
Transnational corporations (TNCs) from developed countries remained the leading sources of FDI, accounting for 84 percent of the global outflows in 2006.
But TNCs from developing and transition economies continued their international expansion, led by Hong Kong (China) and the Russian Federation.
UNCTAD predicted that global FDI inflows would continue to grow in 2007 and beyond. But FDI prospects may be affected by current uncertainties in the financial markets and unfavorable measures and movements for FDI in some areas
Source: Xinhua
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