Further, the UN body forecasts that the inflows would rise gradually in 2014 and 2015, to $ 1.6 trillion and $ 1.8 trillion, respectively.
As global economic growth gains momentum, this may prompt investors to turn their cash holdings into new investments, it said.
However, uneven levels of growth, fragility and unpredictability in a number of economies and risks related to the tapering of quantitative easing could dampen the FDI recovery. FDI flows to developing economies reached a new high of 759 billion, accounting for 52 per cent, during the year. Developed countries, however, remained at an historical low (39 per cent) for the second consecutive year. FDI inflows to developed countries increased by 12 per cent to $ 576 billion, with such investment to the European Union increasing, while flows to the United States continued their decline.