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Asia becomes world’s largest investor region: UNCTAD report

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Asia has become, for the first time, the world’s largest investor region with 440 billion U.S. dollars invested in 2014 , according to a report released Monday by the United Nations Conference on Trade and Development (UNCTAD).

Asia becomes the World’s largest Investor destination in 2014.

  • Total Dollars Invested – 440 billon Dollars

North America – Second Largest Investor region

  • Total Dollars Invested – 390 Billion Dollars

Europe – Third Largest Investor region

  • Total Dollars Invested – 390 Billion Dollars.

Largest Sources of Outward FDI

  1. United States
  2. Hong Kong
  3. China

Other Key findings of the report :

  • The global investment trend monitor published by the UNCTAD showed among 20 largest investors, nine were either from developing or transition economies.
  • China became the third largest investor in the world.

Investment Trends TNCs From Developing Countries :

  1. Transnational corporations (TNCs) from developing economies alone invested almost half a trillion U.S. dollars abroad.
  2. This is 30 percent increase from the previous year.
  3. Their share in global foreign direct investment (FDI) reached a record of 36 percent, up from 12 percent in 2007.
  4. More than half of investments from TNCs based in developing economies were in equity.
  5. UNCTAD estimates that TNC investment appetite will improve, encouraged by better economic prospects, especially in the United States,proactive monetary policy in the euro zone and large cash holdings of companies.

Investment Trends TNCs From Developed Countries :

  1. Investments by TNCs in developed countries were largely flat at 792 billion U.S. dollars.
  2. Modest rise in flows from North America and Europe more than offset by a 16 percent decline in Japanese investment abroad.
  3. Four-fifths of FDI outflows from developed country TNCs were in the form of reinvested earnings.
  4. TNCs remain guarded due to the fragility in some emerging markets, exchange rate volatility and increased geopolitical tensions.

About UNCTAD :

  • Full Form : United Nations Conference on Trade and Development
  • Headquarters : Geneva
  • Member Nations : 194
  • Established : 1964

UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues.

  • It is a member of the United Nations Development Group.
  • The Last UNCTAD conference took place in Doha in 2012.
  • Secretary- General : Mukhisa Kituyi