Global foreign direct investment (FDI) flows fell by 23% in 2017, to $1.43 trillion from $1.87 trillion in 2016, according to the United Nations Conference on Trade’s (UNCTAD’s) World Investment Report 2018. Tax reforms in the United States are likely to significantly affect global investment patterns. UNCTAD observed that the negative FDI trend is caused in large part by a decrease in rates of return. The global average return on foreign investment is now at 6.7%, down from 8.1% in 2012. The GVC slowdown shows a clear correlation with the FDI trend and confirms the impact of the FDI trend on global trade patterns.

Source: News Business Ethiopia June 06, 2018 17:15 UTC