Global: Global outward FDI rose in 2011 despite economic uncertainties

Global foreign direct investment (FDI) outflows rose by 16 per cent in 2011 to an estimated US$1.66 trillion, surpassing the pre-crisis levels of 2007, UNCTAD’s latest Global Investment Trends Monitor reports. This growth was due in large part to cross-border mergers and acquisitions and to increased amounts of cash reserves kept in foreign affiliates, the Monitor, No. 9, says. The report notes that much-needed direct investment in new productive assets through greenfield investment projects or capital expenditures in existing foreign affiliates appeared to be limited.