However, “global FDI inflows fell by 16 per cent to USD 1.23 trillion in 2014, mostly because of the fragility of the global economy, policy uncertainty for investors and elevated geopolitical risks and new investments were also offset by some large divestments,” it says. The groups of countries negotiating the Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership saw their combined share of global FDI inflows decline. Asia overall bucked the global trend with historically high levels of inward FDI to developing economies at USD 681 billion marking a 2 per cent rise. Among the top 10 FDI recipients in the world, five are developing economies. India was also the biggest investor in outward FDI in South Asia with USD 9.8 billion marking an increase of 486 per cent over 2013. However, India does not figure in the first top 20 countries for FDI outflows. “There was an abnormal decrease in 2013 because of macro economic uncertainties when some of the Indian MNCs divested. The figures are now back on track but still lower than figures in 2009, 2010 and 2011,” said Guoyong Liang, UNCTAD Asia head of the Investment Division.
The U.S. had the largest outward flow of FDI followed by Hong Kong-China and China.