Inflow of money in rich economies plummets

GENEVANAMPA/ SAPA Developing countries attracted more foreign direct investment than developed ones for the first time last year, the UN Conference on Trade and Development (UNCTAD) said this week. The reversal came as the inflow of money in rich economies plummeted by nearly a third to US$ 561 billion (N$5,7 billion) in 2012. On a global scale, direct foreign investments fell 18% to US$1,35 trillion (N$13,6 trillion), with developing countries attracting just over half of the world's investment flows. "The road to foreign direct investment recovery is bumpy," and increases would be only moderate in the next two years, Unctad said in its report, citing the fragile state of the global economy. The United States remained the world's largest recipient of foreign investment, followed by China, Hong Kong, Brazil and the British Virgin Islands. Britain, Australia, Singapore, Russia and Canada completed the top-10 list. Investments in the Middle East fell for the fourth year in a row as foreign investors remained wary of political uncertainties, Unctad said. At the same time, foreign interest in natural resources pushed up inflows to Africa and South America. In Asia, foreign money shifted to Cambodia, Myanmar and Vietnam along with labour-intensive manufacturing.