Europe’s share of actual FDI inflows (in US$b) was 26% (first place) in 20102, which is equal to its share of world GDP. However, Europe’s recovery remains mixed and tentative. In 2010, emerging markets collectively represented more than half of FDI globally.
The growth in the value of FDI in China was sustained because investors there are benefiting from stable returns on investment. After the global economic crisis, the gap between growth rates in emerging and developed economies widened as rapid growth in key developing markets has driven the global recovery. In 2010, GDP in China grew by 10.3%, in India by 10.4%, in Brazil by 7.5% and in Russia by 4%. The European Union grew by 1.8%.
The divergent rates of investment growth between emerging and developed markets reflect a shift in the global economy. The emerging markets are an increasingly important source of growth as they offer a growing number of accessible consumers to investors. This rebalancing offers more investment opportunities and favors large emerging economies. Despite seeing increased value in emerging markets, investors in 2011 continued to perceive Central and Eastern Europe (including Ukraine) as the third most attractive region for investment projects (29%).
When deciding where to invest in 2011, global investors considered the critical factors to be: transport and infrastructure (63%), telecommunications infrastructure (62%) and the transparency of the political, legal and regulatory environments (62%).
Ukraine FDI report 2011
