Investments

Direct investment has also soared

Cross-border investments have increased in the past year by almost 40 percent. However, at these growth rates it will remain, warns Unctad in its World Investment Report in 2016.

In 2015, the value of cross-border direct investment (FDI) has increased worldwide by a whopping 38 per cent to 1,760 billion dollars, writes the United Nations conference on trade and development (Unctad) in the latest “World Investment Report, 2016”, which was presented on Tuesday in Geneva. Thus, the FDI reached the highest level since the outbreak of the economic crisis in 2008.

The growth was mainly due to a sharp increase in cross-border mergers and Acquisitions, which have increased by 67 percent to 721 billion dollars. The so-called Greenfield-investment, i.e. completely new Greenfield investments, with a 766 billion dollars is also at a high level.

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Not everything is productive

Unctad Secretary-General Mukhisa Kituyi expressed the latest Figures easier, but pointed out that it is still not clear whether it is the development of a trend reversal. Because a not insignificant part of the cash flows of multi-national companies was not due to 2015 through the Acquisition of other companies, but due to the relocation of corporate headquarters for tax reasons in third countries or because of other organizational measures, in total, however, no growth in production potential. Excluding these factors, had meadows, the global direct investment last year, only moderate growth of 15 per cent.

In view of the continuing weakness of the global economy, lower commodity prices and the increased efforts of the international community to combat the use of Tax loopholes, the Unctad expects for 2016 are already with a decline in FDI volume by ten to 15 per cent.

The trend in the target regions

The higher volume of foreign direct investment could benefit in the past year, especially the industrial States. She moved with 962 billion dollars and more than half, or 55 percent of all investments, and were able to attract for the first Time in five years and more capital than developing and emerging countries. This trend is expected mainly to the weak economic development in emerging countries and low commodity prices turn to be due.

The industrial countries could not but attract the most funds, but invested with 1,100 billion dollars for the first time in three years to more than developing countries and emerging economies in third countries. With expenditure of 576 billion U.S. dollars, Europe was, in spite of its relative growth is the biggest weakness of the direct investor in the world.

In the regional perspective, Africa has attracted in the last year with 54 billion dollars, approximately seven percent less investment than a year earlier, while FDI in Asia reached 16 percent, to 541 billion dollars, a new record. Investment in Latin America and the Caribbean amounted to 168 billion dollars at a fairly low level.