Developing nations on top for first time in 2012 FDI index: UN

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PTI:  Jan 24 2013, 09:36 IST
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direct investment, saw its FDI inflows slip more than 35 per cent to USD 147 billion, while Germany saw its net investment level plunge from USD 40 billion in 2011 to just USD 1.3 billion last year, mainly due to large divestments there.

"Developing countries also suffered from the global decline," Zhan said, "but the decline was much more moderate."

Asia, which raked in 59 per cent of all FDI to developing countries, saw its inflow dip 9.5 per cent, with China, the world's second-largest recipient of such investments, registering a 3.4-per cent drop in 2012 to USD 120 billion.

South America and Africa meanwhile registered positive growth in FDI flows last year.

Last year's overall drop in investments came despite the fact that the global economy grew 2.3 per cent in 2012, while worldwide trade was up 3.2 per cent.

Going forward, UNCTAD expects FDI flows to rise to just USD 1.4 trillion this year and to USD 1.6 trillion in 2014 – still far below the 2007 pre-crisis level of some USD 2.0 trillion in investments.

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