Brussels, 23/07/2010 (Agence Europe) - According to the annual report by the United Nations Conference on Trade and Development (UNCTAD), published on Thursday 22 July, global foreign direct investment (FDI) flows bottomed out in the latter half of 2009 (following a 16% decline in 2008 and then a 34% decline in 2009) before recovering slightly during the first half of 2010. Recovery should gather momentum with global FDI inflows expected to pick up to over $1.2 trillion in 2010 (€936 billion) compared to $1.114 billion in 2009 (€869 billion), and rise further to $1.3-1.5 trillion in 2011, heading towards $1.6-2 trillion in 2012. Such levels are nonetheless below the pre-crisis peak of $2.1 trillion in 2007. Also, UNCTAD warns that these forecasts could be reviewed downward due the fragility of global economic recovery, of the uncertain impact of financial regulation reform and structural macro-economic imbalance, and the volatility of stock and foreign exchange markets. On the whole, FDI recovery is expected to be largely based on international acquisitions/mergers, promoted, as UNCTAD points out, by the restructuring of certain industries and the privatisation of companies having benefited from public support during the crisis. Such operations, moreover, progressed during the first half of 2010 by 36% compared to 2009. Geographically, the crisis has not changed the trends recorded over recent years - the rise in emerging and transition countries, which now account for half of FDI inflows and a quarter of FDI outflows, should be confirmed. Asian countries such as China and India, where FDI began to recover in mid 2009, play a driving role in this, UNCTAD underlines. (E.H./transl.jl)