FDI inflows in second half 2011 looks gloomy despite recovery in first half year – UN

Despite continued moderate recovery of global foreign direct investment (FDI) inflows in the first half of 2011 uncertainties in the global economy makes indications of FDI growth decelerating in the second half of the year, says United Nations Conference on Trade and Development (UNCTAD) October 18, 2011.

According to UNCTAD, whiles its 7th Global Investment Trend Monitor (GITM) remains cautiously optimistic for the full year, projecting FDI flows close to the pre-crisis average, downside risks have intensified.

These were made known by UNCTAD in a press release copied to ghanabusinessnews.com via email.

Developing and transition economies continued to account for more than half of global FDI inflows in the first half of 2011, the UN trade body adds.

It noted that almost all developing regions saw their FDI rising, driven by increasing flows to large emerging markets (China, India, Brazil, South Africa and the Russian Federation).

“In contrast, developed economies, as a group, experienced a slight decline in their inflows, with some major host countries –the United States of America, France and Germany – posting declines in the first half of 2011,” UNCTAD said.

By Ekow Quandzie