Global trends

Global foreign direct investment (FDI) flows declined sharply in 2001. Inflows fell by 51 per cent and outflows by 55 per cent. This reversal ? after steady growth since 1991 and very large rises in 1999 and 2000 ? reflects two factors: the slowing of economic activity in major industrial economies and a sharp decrease in their stock market activity. These combined to slow down new international investment, particularly the cross-border mergers and acquisitions (M&As) that have driven recent FDI. Developed countries have borne the brunt of declining FDI (59 per cent) but developing countries have also suffered (although only by a relatively small 14 per cent). The economies in transition of Central and Eastern Europe (CEE) are the only ones to have remained immune to this general downturn (a 2 per cent increase).

Sustainable Development Goals:

Decent Work and Economic Growth