Foreign direct investment rose to US$1,2t last year

GENEVA – Foreign direct investment (FDI) rose by 34 per cent worldwide last year to US$1,2 trillion, hitting record levels in developing countries led by southeast Asia, a United Nations agency said on Tuesday.

Cross-border mergers and acquisitions constituted a large share of FDI flows, with the US regaining top spot from Britain as the world’s largest recipient country with US$177,3 billion, according to the UN’s trade and development agency UNCTAD. Its preliminary global estimate of FDI for 2006 fell short of the record US$1,4 trillion set in 2000.FDI inflows to developing countries, which accounted for a record US$367,7 billion in 2006, reflected a 10 per cent rise on the previous year, the Geneva-based agency said in a statement.In Africa, FDI inflows were US$38,8 billion, exceeding the record US$30,7 billion of 2005, UNCTAD said.Nigeria and Egypt had the largest shares, US$5,4 billion and US$5,3 billion, respectively.Nampa-AFPIts preliminary global estimate of FDI for 2006 fell short of the record US$1,4 trillion set in 2000.FDI inflows to developing countries, which accounted for a record US$367,7 billion in 2006, reflected a 10 per cent rise on the previous year, the Geneva-based agency said in a statement.In Africa, FDI inflows were US$38,8 billion, exceeding the record US$30,7 billion of 2005, UNCTAD said.Nigeria and Egypt had the largest shares, US$5,4 billion and US$5,3 billion, respectively.Nampa-AFP