FDI flows by region and economies
When it comes to the regional FDI distribution, Europe experienced staggering 55% decline in FDI inflows compared to the last year. This decline was mainly affected by repatriation of retained earnings by USA’s MNCs resulted due to the new corporate tax income reforms in the USA. New reforms encouraged big firms to bring back earnings from abroad (namely Western European countries) where, approximately, they repatriated a net of $217 billion. The biggest economy of Europe, i.e. Germany, faced with 30% decline in FDI inflows attracting $26 billion of overseas investments. Decline also occurred in the North America and Latin America and the Caribbean where inflows dropped by 4% and 6% respectively. FDI inflows to USA, the largest world economy, declined by 9% to $252 billion. In Latin America, FDI inflows to Brazil, the largest host country in the region, decline by 9% to $61 billion.
Furthermore, developing Asia and Africa experienced slight increase of 4% and 11% respectively. In the Asia flows are mainly concentrated in East and South-East Asia where China, the largest FDI recipient among developing economies, attracted overseas investments worth of almost $139 billion. In the South East Asia, Singapore is leading FDI host country ($78 billion) followed by Indonesia ($22 billion) and Thailand ($10 billion). In South and West Asia, two leading host countries, India and Turkey, attracted $42 and $13 billion overseas investments respectively. When it comes to Africa, the largest FDI host country is Egypt ($7 billion) followed by South Africa ($5 billion).