UNCTAD report: scope of incoming investments in Azerbaijan increased

Baku. 30 January. REPORT.AZ/ In the first half of 2014 global flows of foreign direct investment (FDI) fell by 8 percent comparing with the same period of the previous year and amounted to 1.26 trillion US dollars. This trend is due to economic uncertainty and geopolitical risks, including - regional conflicts. Report informs, it was outlined in a new report by the United Nations Conference on Trade and Development (UNCTAD) on World Investment. The authors analyzed the most recent trends in global investment and assessed their prospects.

Flows of foreign investment in countries with economies in transition decreased by almost half compared to the previous year and amounted to 45 billion US dollars. In UNCTAD attributed this decline to the conflict in Ukraine, the sanctions against the Russian Federation and the forecasts of economic downturn.

Foreign investment in the Russian economy fell by 70 percent to about $ 19 billion. Major oil and gas companies from developed countries have stopped or started to refrain from investing in Russia.

In Ukraine, FDI flows decreased by 0.2 billion US dollars. A volume of investments coming to Kazakhstan and Azerbaijan, on the contrary, increased.

The report states that China attracted his housekeeper $ 128 billion and thus ranked first in the list of states where in 2014 was sent to the most foreign direct investment.

The report also says 14 percent drop in the volume of investments coming in industrialized countries, which is mainly due to the sluggish nature of the investment in the US economy.

FDI flows to the European Union amounted to 267 billion US dollars. This is 13 percent more than in 2013, but still much less than the 2007 level.