United Nations Conference on Trade and Development (UNCTAD) on 29 January 2015 released Global Investment Trend Monitor Report. The report provides the global investments trend in 2014 and prospects of global investments in 2015.
The report highlights that Global Foreign Direct Investment (FDI) inflows declined by 8 percent in 2014 to an estimated 1.26 trillion US dollars due to the fragility of the global economy, political uncertainty and geopolitical risks.
In 2014, Foreign Direct Investment (FDI) flow in India increased by 26 percent to an estimated 35 billion US dollar with maximum growth in the services sector, despite the decline in global FDI inflows.
Main Highlights of the Report
Top five FDI recipients’ country of 2014
In 2014, China was the largest recipient of FDI with an increase of 3 percent FDI. As largest recipient of FDI, China replaced the US, a position that was held by it since 1980s.
Among the top five FDI recipients in the world, four are developing economies, the rankings is:
Report in context of India
In 2014 FDI flow in India increased by 26 percent to an estimated 35 billion US dollar with maximum growth in the services sector, despite the decline in global Foreign Direct Investment inflows.
Maximum growth was witnessed in services sector especially in electricity, gas, water, waste management and information and communication. This figure is one of the highest in recent years, though in 2008 FDI peaked in India with 47 billion dollars followed by 35.6 billion dollar in 2009.
FDI prospects in 2015
According to the report, FDI flows in 2015 will be negatively influenced, due to subdued global economic outlook, volatility in currency and commodity markets and elevated geopolitical risks.
The report also says FDI flows will be favoured by the strengthening of economic growth in the United States, the demand-boosting effects of lower oil prices and proactive monetary policy in the Eurozone, coupled with increased liberalization and promotion measures.
What: Released by UNCTAD
When: 29 January 2015