Promising FDI prospects for 2005-08

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Gipa_1FDI will continue to grow in the short and medium term, according to UNCTAD's most recent Global Investment Prospects Assessment. The project is a survey of 75 FDI experts, 69 large multinationals and 119 investment promotion agencies. These three groups certainly have their biases, but here are some of the findings that emerge:

  • Half of the top 10 FDI destinations will be in the developing world
  • A third of the top 15 sources of FDI will be developing countries
  • 80% of those surveyed expect some production activities to be moved overseas
  • Asia and Eastern Europe have the most positive prospects
  • Latin America is expected to maintain its recent recovery
  • Flows to Africa will remain stable, though very low
  • The US remains the most attractive destination for FDI

The survey also sheds light on what are the main causes for concern, which sectors are expected to be the most attractive and what will be the primary vehicles for FDI. The full reports will be available here in October.

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