Developing countries to attract 416 billion U.S. dollars FDI in 2010: World Bank
2010-12-10 16:30:52
Net foreign direct investment flows (FDI) into developing countries are projected to increase by 17 percent to reach 416 billion U.S. dollars this year, as global investors are optimistic about prospects for a global economic recovery led by the developing world, a World Bank Thursday report revealed.
By providing much-needed financial resources, technology transfer, managerial expertise, and connections to the global economy, FDI can help generate and sustain economic growth and promote development, both essential to stability, noted the report entitled "World Investment and Political Risk" released by World Bank&'s Multilateral Investment Guarantee Agency (MIGA).
"This upsurge in FDI into developing countries is welcome news, especially considering last year's drop", said MIGA Executive Vice President Izumi Kobayashi. FDI flows directed to productive assets can spur economic growth and reduce poverty.
Affected by the economic recession, net FDI flowing into developing markets fell sharply from 587 billion U.S. dollars in 2008 to 354 billion U.S. dollars in 2009.
Overall, FDI inflows to the developing world continue to be overwhelmingly concentrated in middle-income nations, with Brazil, Russia, India and China (BRIC) alone absorbing about half, according to the report.
Established in 1988, the MIGA was a member of the World Bank Group to promote FDI into developing countries to support economic growth, reduce poverty and improve people's lives.