Global foreign direct investment (FDI) declined by 18 percent in 2012, according to the United Nations Conference on Trade and Development.
The UNCTAD World Investment Report released on Wednesday shows that global FDI inflows fell by 18 percent to US1.35 trillion (R13.63tn) in 2012.
For the first time ever, developing economies enjoyed 52 percent of the global FDI.
Nonetheless, FDI inflows to developing economies declined slightly by four percent to US703bn (R7.1tn).
Among developing regions, FDI flows to Asia and Latin America and the Caribbean remained high, but their growth momentum weakened.
Developing economies' FDI outflows reached US426bn (R4.3tn), a record 31 percent of the world total.
Developing economies in Asia were the largest source of FDI, accounting for three quarters of the developing nations' total.
FDI inflows to developed economies declined by 32 percent to US561bn (R5.66tn), a level last seen a decade ago.
In 2012, 22 of the 38 developed countries experienced a decline in outward FDI.
Among the top 20 recipients of FDI 12 were developing and transition economies.
Despite the global downturn in 2012, trans-national corporations (TNCs) of developing countries continued their expansion abroad.
FDI outflows from developed countries dropped to a level close to that of 2009.
The uncertain economic outlook led TNCs in developed countries maintaining their "wait and see" approach to new investments.
Jorge Maia, head of research at the Industrial Development Corporation, said as the global economy improved investors would invest more.
"The way UNCTAD sees this is that as macro-economic conditions improve, investors regain confidence in the medium-term, and TNCs are likely to start converting their cash holdings into new investment," he said.
China moved up from sixth to the third largest investor in the world, after the United States and Japan.
In 2012, the US invested US329bn (R3.32tn), while Japan came in second with US123bn (R1.24tn). China invested US84bn (R848.4bn) in 2012.
FDI inflows to Africa increased by five percent to US50bn (R505bn).
"This growth was driven party by FDI in extractive industries, but investment in consumer-oriented manufacturing and service industries was also expanding," UNCTAD said.
FDI to developing Asia fell by seven percent to US407bn (R4.11tn).
In Latin America and the Caribbean, FDI inflows decreased by two percent to US244bn (R2.4tn).
UNCTAD said FDI in 2013 would remain close to the 2012 level at an upper range of US1.45tn (R14.64tn).
FDI flows were expected to climb to US1.6tn (R16.16tn) in 2014 and reach US1.8tn (R18.18tn) in 2015.
Global FDI down by 18%
Global foreign direct investment (FDI) declined by 18 percent in 2012, according to the United Nations Conference on Trade and Development.
The UNCTAD World Investment Report released on Wednesday shows that global FDI inflows fell by 18 percent to US1.35 trillion (R13.63tn) in 2012.
For the first time ever, developing economies enjoyed 52 percent of the global FDI.
Nonetheless, FDI inflows to developing economies declined slightly by four percent to US703bn (R7.1tn).
Among developing regions, FDI flows to Asia and Latin America and the Caribbean remained high, but their growth momentum weakened.
Developing economies' FDI outflows reached US426bn (R4.3tn), a record 31 percent of the world total.
Developing economies in Asia were the largest source of FDI, accounting for three quarters of the developing nations' total.
FDI inflows to developed economies declined by 32 percent to US561bn (R5.66tn), a level last seen a decade ago.
In 2012, 22 of the 38 developed countries experienced a decline in outward FDI.
Among the top 20 recipients of FDI 12 were developing and transition economies.
Despite the global downturn in 2012, trans-national corporations (TNCs) of developing countries continued their expansion abroad.
FDI outflows from developed countries dropped to a level close to that of 2009.
The uncertain economic outlook led TNCs in developed countries maintaining their "wait and see" approach to new investments.
Jorge Maia, head of research at the Industrial Development Corporation, said as the global economy improved investors would invest more.
"The way UNCTAD sees this is that as macro-economic conditions improve, investors regain confidence in the medium-term, and TNCs are likely to start converting their cash holdings into new investment," he said.
China moved up from sixth to the third largest investor in the world, after the United States and Japan.
In 2012, the US invested US329bn (R3.32tn), while Japan came in second with US123bn (R1.24tn). China invested US84bn (R848.4bn) in 2012.
FDI inflows to Africa increased by five percent to US50bn (R505bn).
"This growth was driven party by FDI in extractive industries, but investment in consumer-oriented manufacturing and service industries was also expanding," UNCTAD said.
FDI to developing Asia fell by seven percent to US407bn (R4.11tn).
In Latin America and the Caribbean, FDI inflows decreased by two percent to US244bn (R2.4tn).
UNCTAD said FDI in 2013 would remain close to the 2012 level at an upper range of US1.45tn (R14.64tn).
FDI flows were expected to climb to US1.6tn (R16.16tn) in 2014 and reach US1.8tn (R18.18tn) in 2015.
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