1945

Global trends: sustained growth in FDI flows

The upward trend in foreign direct investment (FDI) that began in 2004 accelerated further in 2006. FDI flows increased in all the major country groups – developed countries, developing countries and the transition economies of South- East Europe and the Commonwealth of Independent States (CIS) – but at varying rates. The sustained growth of FDI and related international production primarily reflect the strong economic performance and increasing profits of many countries in the world, further liberalization of their policies, and other specific factors such as currency movements, stock exchange and financial market developments and high commodity prices. Increases in cross-border mergers and acquisitions (M&As), fuelled substantially by private equity funds, also added to FDI growth.

Related Subject(s): International Trade and Finance
Sustainable Development Goals:
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