Global FDI Fell 2% Last Year; China Became World's Second Largest Investor, UN Report Says
Yicai Global
/SOURCE : Yicai
Global FDI Fell 2% Last Year; China Became World's Second Largest Investor, UN Report Says

(Yicai Global) June 8 -- The value of outbound investments from China increased 44 percent to USD183 billion last year, making the country the world's second largest investor for the first time, the United Nations Conference on Trade and Development (UNCTAD) said yesterday in its 2017 World Investment Report.

Weighed down by an economic deceleration and geopolitical uncertainty, global foreign direct investment (FDI) dropped 2 percent to USD1.75 trillion last year, the report said. Its authors were cautiously optimistic about future development and predicted that FDI will grow around 5 percent to USD1.8 trillion.

The flow of FDI of FDI into developing Asian economies fell 15 percent to USD443 billion last year in the first decline since 2012. Foreign investment into China ranked third globally and remained relatively stable, dropping 1 percent to USD134 billion. Outbound direct investment from China hit an all-time high, while outflows from other parts of Asia decreased substantially.

China's outbound investment grew rapidly last year, but Chinese investors were confronted with challenges posed by a rise in protectionism, James Zhan, UNCTAD's director of investment and enterprise, said yesterday. Foreign investment in China will probably not increase significantly in the next several years as global FDI growth has slowed and the country has lost some of its cost-competitiveness, he said.

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Keywords: UN , Investment