Foreign direct investment down 8 per cent


GLOBAL ECONOMY:Global foreign direct investment (FDI) declined by 8 per cent in the first six months of the year according to UNCTAD’s 10th Global Investment Trend Monitor.

A slowing of the global economy in the second quarter contributed to the decline, with the UN body now projecting that FDI flows will, at best, level off in 2012, at slightly below $1.6 trillion.

“The current trends of . . . flows to developing countries, particularly to Asia, are worrisome,” secretary general of UNCTAD Supachai Panitchpakdi said, adding it was vital to channel FDI into key development sectors such as infrastructure, agriculture and the green economy.