Global flows of Foreign Direct Investment (FDI) dropped by 16 per cent in 2017, according to the latest UNCTAD Global Investment Trends Monitor.
The UN body estimated the provisional value of global FDI at US$1.52 trillion in the past year while the actual amount was $1.81 trillion in 2016.
United Nations Conference on Trade and Development (UNCTAD) released the latest report on investment monitor on Monday night globally.
“FDI recovery continues to be on a bumpy road,” said UNCTAD Secretary-General Mukhisa Kituyi in a press statement.
“While FDI in developing countries remained at a level similar to the previous year, more investment in sectors that can contribute to the Sustainable Development Goals is still badly needed. Promoting FDI for sustainable development remains a challenge.”
Around 27 per cent drop in FDI flows to developed countries was the main factor behind the global decline, the UNCTAD report identified.
FDI to developing economies remained stable, at an estimated $653 billion in 2017 which was 2 per cent higher than the previous year.
“Flows rose marginally in developing Asia and Latin America and the Caribbean, and remained flat in Africa,” said the report.
“Developing Asia regained its position as the largest FDI recipient region in the world, followed by the European Union and North America.”
Meanwhile, the net inflow of FDI in Bangladesh increased marginally in the first 11 months of the past year.
According to the central bank estimation, the net inflow of FDI in January-November period in the past year stood at $1.84 billion which was $1.71 billion in the same period of 2016.