FDI and growth
Prospects for foreign direct investment and the strategies of transnational corporations, 2005-2008
The projected future for FDI, 2005-2008
Authors:
; UNCTAD
Publisher:
United Nations [UN] Conference on Trade and Development , 2005
The Global Investment Prospects Assessment 2005-2008 presents the future trends of global and regional FDI flows, strategies of transnational corporations (TNCs) and developments of FDI policies. The Assessment is based on the findings of three worldwide surveys (i.e. the surveys of the world´s largest TNCs, national investment promotion agencies and international investment experts); as well as on the analysis of relevant leading economic indicators, and policy developments that would shape future FDI patterns.
Some key summary points are:
- prospects for global foreign direct investment (FDI) are promising in both the short term (2005-2006) and the medium term (2007-2008)
- the overall positive outlook, indicated by the Global Investment Prospects Assessment (GIPA) 2005 surveys and the business environment depicted by various leading indicators for FDI, all point to increased investment in the future
- the stage for the expected FDI growth is set by the foreseeable macroeconomic climate, which is largely favourable to FDI, and growing corporate profits that increase the availability of investible funds for corporate future expansion
- at the same time, there are also risk factors that can be potentially detrimental to future FDI growth rates, such as protectionism, lower-than expected growth in industrialised countries, financial instability in major source economies, global terrorism, and the volatility of petroleum and other raw material prices.



