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Foreign Direct Investment

1 October 2017|Newsletter Edition

Editorial

In 2016, global FDI flows amounted to US$ 1.7 trillion, higher than any of the annual figures between 2008 and 2014. Nonetheless, this figure reflects a 2% drop compared with 2015. Developed economies regained the lead, receiving 59% of FDI flows, with their inflows climbing by 5%. Developing economies received 37% of the total and their FDI inflows fell by 14%. All the developing subregions received less investment, with Asia seeing decreases of 15% and Africa, 3%.

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Insights

Latin America and the Caribbean must support foreign investments that help close the productive and social gaps in the region

Cross-border mergers and acquisitions played a large role in global FDI, especially in developed economies, driven by greater international liquidity and industry strategies that led to major operations. Meanwhile, China was the second biggest provider of global FDI, after the United States, as its foreign investments increased steadily, particularly acquisitions in the European Union and the United States. China’s “Go Global” strategy, launched more than a decade ago, has consolidated its role as a global player that is integrating into the workings of increasingly sophisticated sectors, by actively engaging with new technological trends of the fourth industrial revolution.