Asia and Eastern Europe have become the world’s most attractive regions for foreign direct investment, according to a new UN report.
In its latest report on global foreign direct investment (FDI) prospects for 2005-2008, the United Nations Conference on Trade and Development (UNCTAD) said that Asia and Eastern Europe have become the most attractive and prospective FDI destinations. Latin America is expected by UNCTAD to maintain its recent FDI recovery, while FDI flows to Africa are likely to to remain stable at a low level. In the developed world, the US remains ahead of Europe as a favoured FDI destination.
As for the world’s leading sources of FDI, UNCTAD’s list is topped by the US, the UK, Germany and China. UNCTAD predicts that global FDI recovery will continue, and says that the overall mood is one of cautious optimism.
“The findings suggest that countries need to seize the investment opportunities but also to pay attention to the quality of FDI, given the fierce competition for investment,” said UNCTAD’s new secretary general Supachai Panitchpakdi.