UN Trade & Development, better known as Unctad, has reported, in its latest “Global Investment Trends Monitor”, that global foreign direct investment (FDI) fell by 3% during the first half of this year, year-on-year. This continued what was now a two-year “slump” (Unctad’s word) in FDI, caused by trade stresses, high interest rates and international political uncertainties. “The drop was driven by developed economies, where cross-border mergers and acquisitions (M&As) – which normally make up a large share of their FDI – fell 18% to $173-billion,” pointed out Unctad. “Developing economies fared better overall, with flows remaining flat. But trends diverged by region. Inflows rose 12% in Latin America and the Caribbean and 7% in developing countries in Asia but fell 42% in Africa.”
