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Global FDI flows slipped 16% in 2017: UNCTAD

by January 22, 2018 General

Global Foreign Direct Investment (FDI) inflows slipped by 16% in 2017 to $1.52 trillion according to the UNCTAD‘s Investment Trends Monitor.

The report has attributed the slump of over 27% to fall in FDI flows to developed countries mainly UK and US. India was at the tenth spot among the top host economies for FDI inflows in 2017 with $45 billion overseas investment coming into the country. US, China and Hong Kong were the top three in the list.

Even amid the global slump developing Asia however became the largest FDI destination with a 2% increase to $459 billion.

The share of developing Asia in global inflows rose from 25% in 2016 to 30% in 2017. The rise has been the result of a sharp increase in the value of cross border M&A sales which grew from $42 billion in 2016 to $73 billion in 2017.

The value of cross border deals in India grew sharply from $8 billion to $22 billion in the last one year driven by a number of large deals. These include acquisition of 49% stake in Essar Oil, by Petrol Complex Ltd, Singapore owned by Rosneftegaz of Russia.

The value of cross border M&A in developing economies increased by 44% to $100 billion in 2017 while globally this value contracted by 23%.

UNCTAD’s report predicts a bounce back in global FDI numbers in 2018 to almost $1.8 trillion.