US, China, India to be top prospective destinations for FDI – UNCTAD

According to the ‘World Investment Report 2017: Investment and the Digital Economy’, published by United Nations Conference on Trade and Development (UNCTAD), US, China and India are considered as top prospective destinations for foreign direct investment (FDI).

Highlights of ‘World Investment Report 2017: Investment and the Digital Economy’:

• In 2016, global FDI flows reduced marginally by 2% to $1.75 trillion. This reduction is on account of weak economic growth and significant policy risks perceived by multinational enterprises.
• There was a major decline (about 14%) in FDI flows to developing countries. However flows to developed countries rose by 5%.
• US attracted highest, $391 billion FDI inflows in 2016. US is followed by Britain with $254 billion, andChina with inflows of $134 billion.
• Brazil, the Russian Federation, India, China and South Africa (BRICS Nations) accounted for 22% of global GDP but received only 11% FDI inflows in 2016.
• In 2016, India received $44.5 FDI, which marks a marginal 1% hike over 2015.
• World Investment Report 2017 highlighted that multinational enterprises are actively resorting to cross-border mergers and acquisitions to increase their reach in Indian market.
• The report has forecasted that global FDI flows will increase to almost $1.8 trillion in 2017, continuing to $1.85 trillion in 2018.

Quick Facts about United Nations Conference on Trade and Development (UNCTAD):

UNCTAD is an organ of United Nations, which was formed to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology.

• It was formed in year 1964. Headquarters of UNCTAD is located in Geneva, Switzerland.
• Mukhisa Kituyi is the current Secretary General of UNCTAD.
• UNCTAD publishes‘World Investment Report’ annually since 1991.  It covers the latest trends in foreign direct investment around the World.