. South, East and South-East Asia and Oceania, with FDI outflows of $150 billion in 2007, has become a significant source of FDI, particularly for other developing countries both within and outside the region.
. With the doubling of FDI outflows from West Asia
to $44 billion, this region remains an important
source of FDI, led by the countries of the Gulf
Cooperation Council (GCC). SWFs based in
the subregion have also accounted for a major
proportion of FDI.
. FDI outflows from Latin America and the
Caribbean fell by 17% in 2007, to around $52
billion. This was due to the decline in outflows from
Brazil to $7 billion following the exceptionally
high level of $28 billion reached in 2006.
South-East Europe and CIS
FDI inflows into the transition economies of
South-East Europe and CIS increased significantly by
50% to reach a new record of $86 billion in 2007 - the
seventh year of uninterrupted growth of FDI flows to
the region. Inflows to the region's largest recipient, the
Russian Federation, rose by 62% (annex table B.1).
Interest in the Russian Federation as an FDI destination
does not seem to have been greatly affected by the
tightening of Russian regulations relating to strategic
industries, including natural resources, or by disputes
over environmental protection and extraction costs.
Thus, overall, FDI inflows into the region remained
buoyant.
FDI outflows from South-East Europe and
CIS also rose to record levels in 2007, reaching $51
billion - more than twice as high as the previous year.
FDI from the Russian Federation reached a new high
in 2007 ($46 billion).
Sectoral patterns
In recent years there has been a significant
increase in FDI flows to the primary sector, mainly
the extractive industries, and a consequent increase
in the share of that sector in global FDI flows and
stock (WIR07: 22 and annex tables A.I.5-A.I.8).
The primary sector's share in world FDI is now back to
a level comparable to that of the late 1980s. The
services sector still accounts for the largest share
of global FDI stocks and flows, while the share of
manufacturing has continued to decline.
In 2006, the primary sector's share of the
estimated total world inward FDI stock stood at
8%, and the sector accounted for 13% of world FDI
inflows in the period 2004-2006. There has been
some recent levelling off of FDI flows to the primary
sector, as indicated by FDI flow data as well as data
on cross-border M&As and greenfield investment
projects.
The value of cross-border M&As in the
sector declined from $156 billion in 2005 to $109
billion in 2006, and recovered only partially (to $110
billion) in 2007 (annex table B.6). The increase in
FDI in the primary sector in 2007 was more evident
in greenfield investments. Their number rose from
463 in 2005 to 490 in 2006 and 605 in 2007 (annex
table A.I.2).
