Global and Regional Investment Trends

Astrit Sulstarova

Chief, Trends and Data SectionInvestment and EnterpriseUNCTAD

Sustainable Trade and Investment in AsiaTime for Action

Bangkok, 20 September 2016

Recovery in FDI was strong in 2015, but lacked productive impact Global FDI inflows by group of economies, 2005−2015, and projections, 2016−2018(Billions of dollars and per cent)

Source: ©UNCTAD.

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FDI flows to developed countries nearly doubled. Developing Asia remains largest FDI host region

FDI inflows, by region, 2013–2015 (Billions of dollars)

Source: ©UNCTAD.

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Half of top 10 FDI hosts are developing economies and four of them are from AsiaFDI inflows, top 20 host economies, 2014 and 2015 (Billions of dollars)

Source: ©UNCTAD.

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Strong performance of East and South Asian economiesDeveloping Asia: FDI inflows, by subregion, 2013–2015 (Billions of dollars)

Source: ©UNCTAD.

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FDI flows remained concentrated: four largest recipients – Hong Kong (China), China, Singapore and India – received more than three quarters of total inflows to developing Asia

Developing Asia: FDI inflows, top host economies, 2015(Billions of dollars)

Source: ©UNCTAD.

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MNEs from developing Asia remained the largest investors in the region

Developing Asia: Top 10 investors economies by FDI stock, 2009 and 2014(Billions of dollars)

Source: ©UNCTAD.

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Developed economies: FDI outflows and their share in total world outflows, 2005−2015 (Billions of dollars and per cent)

Investments by MNEs from developed economies surged

Source: ©UNCTAD.

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FDI outflows, top 20 home economies, 2014 and 2015 (Billions of dollars)

Rising investment by European MNEs reshuffled the top 20 investors in 2015

Source: ©UNCTAD.

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FDI inflows in selected megagroupings, 2014 and 2015 (Billions of dollars and per cent)

Megagroupings account for a significant share of global FDI…

Source: ©UNCTAD.

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…and significant cross membership among major groups

Source: ©UNCTAD.

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Prospects: FDI flows are expected to decline by 10–15 per cent in 2016

Fragility of the global economy

Persistent weakness of aggregate demand

Sluggish growth in some commodity exporting countries

Effective policy measures to curb tax inversion deals

A slump in MNE profits

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Profitability and profit levels of MNEs, 2006–2015(Billions of dollars and per cent)

The global economic outlook and lower commodity prices directly affected the profits and profitability of MNEs

Source: ©UNCTAD.

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Executives’ global FDI spending intentions, 2016–2018, with respect to 2015 levels(Per cent of responding executives, based in each region and sector)

UNCTAD Business survey reveal muted overall FDI spending intentions in 2016, but improving over the medium term

Chapter I. Global Investment Trends

Source: ©UNCTAD.

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MNEs’ top prospective host economies for 2016–2018(Per cent of executives responding)

The top prospective destinations remained unchanged

Source: ©UNCTAD.

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www.unctad.org/fdistatistics

The Investment Policy Hub:http://investmentpolicyhub.org

@unctadwif

THANK YOU

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