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Friday, October 26, 2012

And The Number One Country In The World For Investment Is... 10-26

courtesy Forbes

And The Number One Country In The World For Investment Is...

And of course it is not the European Union.  Indeed, you jest!
It is China, xie xie, thank you very much.
Yes, big corporate money likes a good old hard landing, the sky is falling, the housing bubble is popping like a Fourth of July gone terribly wrong, and manufacturing fleeing to build in Alabama story.  Yes…THAT China.
China has finally surpassed the United States for the first time since 2003 to become the world’s largest recipient of global foreign direct investment.  The data is based on FDI flow for the first half of 2012.
You can access the 8 page report here.
FDI inflows to China amounted to $59 billion in the first half of this year, despite a year-on-year decline of 3 percent from $61 billion in the first half of last year. Meanwhile, FDI flowing to the U.S. was a little less, at $57.4 billion. But that was ultimately a decline of 39.2 percent from a year earlier, according to the Global Investment Trends Monitor report, published Tuesday and released to the press on Thursday.
When other countries are included in the full data, global FDI inflows declined by 8 per cent in the first half of 2012, as the economic recovery suffered new setbacks in the second quarter of 2012. Compared to full year forecast of FDI inflows published in July, UNCTAD’s tenth Global Investment Trend Monitor now projects that FDI flows will level-off in 2012, at slightly below $1.6 trillion.  The slow and bumpy recovery of the global economy, weak global demand and elevated risks related to regulatory policy changes continue to reinforce the wait-and-see attitude of many multinationals toward investment abroad, UNCTAD said in a statement on their website yesterday.
Flows to developing economies decreased by 5 per cent. While flows to developing Asia declined, those to Latin America and the Caribbean and Africa rose. FDI flows fell to the BRICs as a whole and to each of individual country within the group. In the first half of 2012, FDI inflows declined by 11 per cent in developing Asia, despite a strong recovery after the global financial crisis. This reflects a protracted period of weak external demand with consequent strongly negative effects on exports and increasing uncertainty about high-growth emerging countries. As a result of declines in China and Hong Kong (China), total FDI inflows to East Asia fell by about 11 per cent. Half-year inflows to China amounted to $59 billion ―a 3 per cent decline from $61 billion in the first half of last year. China is experiencing structural adjustments in their FDI flows, including the relocation of labour-intensive and low-end market-oriented FDI to neighbouring countries.

Inflows to Hong Kong (China) declined much more significantly, by 26 per cent to $41 billion. In the meantime, Taiwan Province of China performed well, with inflows rising to $1.8 billion.”

— Global Investment Trends Monitor, Issue 10, Oct. 23, 2012.
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