Extract from Executive Summary
The world has a growing number of important spheres of economic influence. The European Union's share of foreign direct investment (FDI) inflows (26%, first place) now equals its share of world GDP. Its recovery, however, remains mixed and tentative.
In 2010, emerging markets collectively reaped more than half of global inward FDI for the first time, although their performance was mixed: while the value of FDI into Brazil grew 16.3% on the back of commodities and consumption, capital inward investment in India fell 31.5%,2 slowed by strong internal competition for investments projects. Growth of FDI in China was sustained because investors there are benefiting from stable returns on investment (ROI).
When considering where to invest in 2010, companies view transport and logistics infrastructure (63%), telecommunications infrastructure (62%) and stability and transparency of the political, legal and regulatory environment (62%) as the most critical factors.
The UK and France remain FDI leaders in Europe, but they are losing market share to countries such as Germany and a host of smaller more cost-competitive countries, for example, Poland, Hungary and the Baltics.
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