ACCORDING to new OECD data, the
global investment activity
fell by nearly a third in the second quarter of 2013, after two consecutive
quarters of increases. This marks a return to the
steady downward trend that started in Q1 of 2012, says the report, with international
investors pulling more money out than they invested.
Unlike earlier stages of the global economic crisis, when emerging economies
played a counter-cyclical role in international investment flows, the declines
in Q2 were across the board. Outward investment from OECD economies declined
by 20% to USD 155 billion and inward investment into the OECD declined by 26%
to USD 137 billion.
Investment by non-OECD G20 countries fell by 92%, from USD 82 billion to USD
6.5 billion. This was mainly due to the collapse in international investment
from Russia, from USD 54 billion in Q1 to USD -1 billion international divestment
in Q2. Russia recorded its highest levels of investment outflows in Q1, largely
a result of the TNK-BP Rosneft deal, involving the Virgin Islands.
Three countries received 47% of global FDI inflows in Q2 2013: China attracted
the lion’s share (USD 61 billion, or 21% of total) followed by the United Kingdom
(USD 41 billion) and the United States (USD 38 billion). As with outflows, the
decrease in inflows is largely due to divestments in OECD countries. The declines
in inflows to Canada (41% decrease, to USD 11 billion) and Spain (48% decrease,
to USD 6 billion) were particularly large.
Not all countries experienced declines. FDI inflows increased for Australia (from
USD 10 billion to USD 12 billion), the United Kingdom (from USD 34 billion to
USD 41 billion), and the United States (from USD 29 billion to USD 38 billion).
Mexico recorded its highest level of investment inflows (from 5 billion to USD
18 billion), boosted by Belgian-based beer giant Anheuser-Busch InBev's acquisition
of Grupo Modelo.
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