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Research - JANUARY 22, 2018

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FDI, cross-border M&A and greenfield project flows in decline

by Drew Campbell

Global flows of foreign direct investment fell by 16 percent in 2017 to an estimated $1.52 trillion, from $1.81 trillion in 2016, according to the latest United Nations Conference on Trade and Development Global Investment Trends Monitor.

“FDI recovery continues to be on a bumpy road,” says UNCTAD secretary-general Mukhisa Kituyi. “While FDI in developing countries remained at a level similar to the previous year, more investment in sectors that can contribute to the Sustainable Development Goals is still badly needed. Promoting FDI for sustainable development remains a challenge.”

FDI flows to developed countries fell 27 percent and was the principal factor for the global decline. A strong decrease in flows was reported in Europe (–27 percent) as well as in North America (–33 percent), primarily due to a return to prior levels of inflows in the United Kingdom and the United States after spikes in 2016. This decline was tempered by an 11 percent gr

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