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Latino Daily News

Tuesday January 18, 2011

Emerging Economies Like Latin America Attracted Greater Share of Foreign Investment Says UN

Foreign direct investment (FDI) to developing and transition economies rose last year, while investment flows to developed countries declined, the United Nations agency tasked with promoting trade said in an update on global investment trends released today.

Developing and transition economies accounted for more than half of global flows, the UN Conference on Trade and Development (UNCTAD) reported, noting that there was a strong rebound in FDI to developing Asian economies and Latin America, while Europe stood out as the region where flows fell the most sharply.

While the increased profits of foreign affiliates, especially in developing countries, boosted reinvested earnings, the uncertainties surrounding global currency markets and European sovereign debt resulted in negative intra-company loans and lower equity investments.


Developing and transition economies accounted for more than half of global flows, the UN Conference on Trade and Development (UNCTAD) reported, noting that there was a strong rebound in FDI to developing Asian economies and Latin America, while Europe stood out as the region where flows fell the most sharply.

While the increased profits of foreign affiliates, especially in developing countries, boosted reinvested earnings, the uncertainties surrounding global currency markets and European sovereign debt resulted in negative intra-company loans and lower equity investments.