Today, the United Nations released a report stating that last year, global foreign direct investment (FDI) increased by 17 percent. Over half of FDI went into developing and transitional countries. Investments in Latin America increased by 35 percent. Transition economies saw a 31 percent increase in financial contribution by foreign investors.
Unfortunately, FDI in African states declined to a total of 3.6 percent of global FDI. This drop indicates greater investment by developed nations and the private sector is necessary.
Global FDI is expected to rise to $1.6 trillion in 2012. As the global economy encounters the uncertainties surrounding the euro and other economic situations, it is even more important that FDI not backslide. Foreign investment is not only a valuable tool for not only alleviating global poverty. FDI creates jobs oversees, strengthens markets, and overall contributes to a stronger global economy.
-Akshika Patel
SOURCE:UN News Centre
