China and Brazil head the list of preferred countries for foreign investment

24 July 2009

Brasilia, Brazil, 24 July – China is the country which attracts the most Direct Foreign Investment (DFI), according to a report by the UN Conference on Trade and Development (Unctad).

Brazil is in fourth place right after the US and India.

Brazil rose one place in the ranking pushing Russia into fifth position.

Unctad’s report was based on research carried out with 241 companies into the prospects for global investment between 2009 and 2010.

Unctad predicts a slow recovery of direct foreign investments for next year, with a significant pickup in 2011.

The document says that multinational companies have been significantly affected by the international financial crisis. The worst affected sectors have been: the car, metal and chemical industries. Food, services and pharmaceuticals have been the least affected.

According to the report, in developing countries, cheap labour and, in some cases, access to natural resources, are the main factors which attract direct foreign investment. (macauhub)