fDi Markets Newswire:

Home / News / Unctad: FDI fell 41% in H1 2018

First-half global FDI plummeted by 41% according the latest Unctad report, driven by US repatriations. Sebastian Shehadi reports.

Global FDI fell by 41% in the first half of 2018, to an estimated $470bn, from $794bn in the same period in 2017, according to the latest Global Investment Trends Monitor from the United Nations Conference on Trade and Development (Unctad).

The main cause behind the drop was large repatriations by US parent companies of accumulated foreign earnings from their affiliates abroad, following tax reforms by the Trump administration, said Unctad.

The drop was more significant in developed countries, where FDI inflows fell by 69% to an estimated $135bn, the report said. FDI also declined slightly across all developing regions, to an estimated $310bn in the first half of the year, 4% lower than in the first half of 2017.

Developing economies’ share of  global FDI reached a record 66%, with developing Asia still the largest host region. It received 47% of global FDI in the first half of 2018. Globally, China had the most FDI.

By contrast, cross-border merger and acquisitions remained flat in the first half of 2018 at $371bn. Meanwhile, announced greenfield projects – an indicator of future trends – recovered to $45bn, an increase of 42% from relatively low levels in the same period in 2017, according to Unctad. This is corroborated by data from fDi Markets, which shows that global FDI in the first half of 2018 increased by 32%, year on year.  

The greenfield investment recovery largely bypassed developed countries, where the increase was less than 5%, the report said. “The FDI trends for the first half of 2018 risk bringing global investment down to its lowest level for more than a decade, driven more by policy factors than by the economic cycle,” said the report.

Policymakers from around the world will discuss global policy for sustainable investment at the World Investment Forum on October 22-26, at the Palais des Nations in Geneva.

This article is sourced from fDi Magazine
fDi Magazine

The fDi Report 2018: Free Download

The fDi Report 2018 promobox

Crossborder investment monitor

fDi Markets - Cross border investment monitor

fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.

Click here to find out more about fDi Markets

Corporate location benchmarking tool

fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.

Click here to find out more about fDi Benchmark

Research report

fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.

Find out more.