UNCTAD says global foreign direct investment fell 39% last year

Geneva, January 19 (Xinhua) The United Nations Conference on Trade and Development (UNCTAD) reported 19th that global foreign direct investment fell by 39% in 2009, from $1.7 trillion to $1.04 trillion in 2008. The report says the global decline in foreign direct investment last year spread to various economies and to various components of investment. After 2008 years of sharp declines, investment into developed countries continued to plunge 41% last year.　　Investment flows to developing countries and economies in transition, while maintaining growth in the year 2008, fell by 35% and 39% respectively in 2009, in connection with the impact of the global financial and economic crisis. The report showed that the top six countries and regions that absorbed foreign direct investment last year were the United States, China, France, Russia, the Netherlands and Hong Kong, China. The US absorbed foreign direct investment of $137 billion, down 57% from 2008.　　Foreign direct investment absorbed by China is slightly above $90 billion trillion, down 2.6%. The report said that last year's three main components of foreign direct investment-equity investment, profit reinvestment and corporate lending-were affected by the economic crisis, the most reflective of the long-term investment strategy of multinational companies in the fall in equity investment is particularly prominent.　　In terms of investment type, cross-border mergers and acquisitions are the most affected, down 66% from 2008. However, some macroeconomic indicators suggest that the overall environment for international investment is gradually improving.　　UNCTAD's report concluded that, as the investment climate and its own operating conditions improved, TNCs would gradually adjust their international investment plans, with a moderate rebound in global foreign direct investment expected in the year 2010 and strong growth in 2011. Zhan, director of the Investment and Enterprise Division of UNCTAD, said in an interview with Xinhua news agency 19th that in recent years, China's position and role in global foreign investment has been rising and remarkable. China's efforts to attract foreign investment in 2009 have been fruitful, and the government's massive economic stimulus package and strong investment-promotion initiatives have played an important role in maintaining a steady inflow of FDI.