Global FDI skids 19% on Donald Trump tax reform, may rebound in 2019: UN
Live MintGeneva: Global foreign direct investment fell 19% last year to an estimated $1.2 trillion, largely caused by US President Donald Trump's tax reforms, the United Nations trade and developme FDI, comprising cross-border mergers and acquisitions, intra-company loans and investment in start-up projects abroad, is a bellwether of globalisation and a potential sign of growth of corporate supply chains and future trade ties. The lowest net global FDI since 2009 was the result of U.S. firms repatriating $300 billion or more in accumulated earnings to take advantage of Trump's tax break. Second was China, up 3% to $142 billion, and third was Britain, which saw a 20% jump to $122 billion, mainly due to a doubling of reinvested earnings and a tripling in the value of M "Despite the huge uncertainty related to the Brexit, the UK government has intensified its effort to promote and facilitate new investment, as well as to retain existing investment in the country, including formulating a strategy and adopting new measures for attracting foreign investment," Zhan told Reuters. Zhan said the rise was largely due to firms restructuring supply chains in Southeast Asia, driven by a desire to avoid getting caught up in trade tensions, as well as by new opportunities from the 11-country Comprehensive and Progressive Trans-Pacific Partnership Agreement and investment liberalisation in China.