From the Newsroom*
São Paulo – Global flows of foreign direct investment (FDI) totalled US$ 1.5 trillion in 2007, according to preliminary data disclosed today (8th) by the United Nations Conference on Trade and Development (Unctad). The amount is a new record, surpassing the value posted in the year 2000, which was US$ 1.4 trillion. In 2006, global FDI flows stood at US$ 1.3 trillion.
According to the Unctad, the figure reflects trends of high-level growth among multinational companies, and of strong economic performance in different parts of the world, so much so that there was an increase in FDI flows into developed countries, developing countries, and economies in transition. The latter group is comprised of Southwest Europe countries and countries in the Commonwealth of Independent States (CIS, the former URSS).
According to the organisation, high profit margins posted by companies and the abundance of available resources have raised the value of international mergers and acquisitions, which are responsible for a significant share of FDI flows. Investment was not affected by the mortgage crisis that began in the second half of 2007 in the United States, says the Unctad.
*Translated by Gabriel Pomerancblum
