Emerging-Market Indicators

Foreign direct investment

|

After reaching record levels in 2000, foreign direct investment (FDI) declined sharply in 2001. The slump was concentrated in the world's rich countries, where the frantic pace of cross-border mergers and acquisitions flagged after years of growth. FDI flows to the European Union shrank by 60%, while North America's inflows slowed by 59%. FDI into Africa almost doubled, although from a modest base, rising from $9 billion in 2000 to over $17 billion in 2001. But most of this investment was concentrated in a few big projects in South Africa and Morocco. In the emerging markets, Argentina, Brazil and Hong Kong suffered a combined $57 billion decline in inbound FDI. In 2001, America continued to attract more FDI than any other country; it also invested the most abroad of any country.

This article appeared in the Emerging-Market Indicators section of the print edition under the headline "Foreign direct investment"

Cross my heart, and hope to get away with it

From the September 21st 2002 edition

Discover stories from this section and more in the list of contents

Explore the edition

Discover more

Overview

Child mortality