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Developing Countries: Foreign Investment

Volume 486: debated on Thursday 22 January 2009

To ask the Secretary of State for International Development what assessment he has made of the likely effects of the global economic situation on the level of foreign direct investment from the United Kingdom to developing countries in 2009; and if he will make a statement. (248781)

The main source for data on Foreign Direct Investment (FDI) flows is the annual World Investment Report (WIR) published by the United Nations Conference on Trade and Development:

WIR 2008 predicted that the global financial crisis would result in FDI flows for the whole of 2008 falling 10 per cent. from the 2007 level, although the report also suggests that FDI flows to developing countries are less likely to be affected.

According to the Office of National Statistics FDI surveys, UK companies have invested £96 million in Africa and £7.3 billion in Asia in 2007.

DFID maintains a substantial investment climate reform programme to help improve the environment for both foreign and domestic investment flows. This includes a three-year £17 million commitment to the Investment Climate Facility for Africa.