All roads lead to China
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More optimism
The 2010 WIPS said global FDI prospects are rebounding after a torrid time last year. The recovery has started and is expected to go from strength to strength in the next two years, it said.
The number of pessimists has also fallen sharply. While 47 percent of the respondents had expressed pessimism on growth prospects last year, the number has now fallen to 36 percent. The outlook for 2011 and 2012 is much stronger with the growth numbers around 47 percent and 62 percent respectively.
Though the global FDI levels have fallen, the amount of investment flowing into developing nations and transitional economies has been increasing.
Nine of the top 15 priority FDI destinations till 2012 are from these regions, with BRIC nations - Brazil, Russia, India and China - occupying four of the top five slots.
The WIPS findings are based on interviews with 236 international companies and 116 investment promotion agencies.
In its earlier World Investment Report 2010, UNCTAD had predicted global FDI flows would reach $1.3-$1.5 trillion in 2011 and $1.6-$2 trillion in 2012, up from an estimated $1.2 trillion in 2010. Rebounding cross-border mergers and acquisitions will be a major driver of this growth, it said.
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