Investors remained cautious about their foreign expansion plans in 2010, according to fDi Intelligence’s latest Global Outlook Report.

While the figures showed that the situation was improving, it was a somewhat lacklustre recovery. Greenfield FDI projects declined by 0.38% in 2010. While not an impressive result, it is far better than the 17.3% decline posted in 2009.

Advertisement

Greenfield capital investment fell by a worrying 16% last year, but compared with 2009’s fall of 36%, it is slightly more encouraging.

The results suggested that a slow global economic recovery, exchange rate instability and sovereign debt problems are still weighing heavily on investors’ minds. This seemed especially true in western Europe, where there was a 15% decline in greenfield FDI, which represented the largest decline of any region.

However, bright spots for growth included Brazil and Australia, which both moved higher up the rankings for FDI locations. Brazil, with a 28% growth in greenfield FDI projects in 2010, moved up to seventh place in terms of total projects received. Australia saw a 39.5% increase in projects, moving it from 16th place to ninth in 2010.

The full report will be available on www.fDiIntelligence.com from 18 April 2011