Foreign direct investment recovers in developed countries in 2013. After a sharp fall in 2012, foreign direct investment (FDI) activity by the world's 39 developed economies recovered in 2013, albeit marginally in the case of outflows, according to UNCTAD's World Investment Report 2014, published on Tuesday 24 June. Inflows were $566 billion, rising 9% over 2012. Outflows were $857 billion in 2013 - virtually unchanged from a year earlier. Both inflows and outflows remained at barely half the peak level seen in 2007. Despite the overall increase in inflows, the recovery was concentrated in a smaller set of economies with 24 of 39 economies registering a fall in inflows. Overall outflows were weighed down by a contraction of outflows from North America, despite the continued expansion of investment from Japan and a recovery in Europe. In terms of global share, developed countries accounted for 39% of total inflows and 61% of total outflows - both at a historically low level. In Europe inflows were $251 billion (up 3% over 2012), of which the EU countries accounted for $246 billion. Among the major economies, inflows to Germany - which had recorded an exceptionally low volume in 2012 - rebounded sharply, but France and the United Kingdom saw a steep decline. Inflows to Italy and Spain rebounded sharply with the latter becoming the largest European recipient country in 2013. Outflows from Europe increased by 10% to $328 billion, of which $250 billion were from the EU countries. The report also shows that Switzerland became Europe's largest direct investor abroad. However, set against the drastic decline in 2012, the recovery of European FDI was modest. Both inflows and outflows remained about half of the level in 2011 and about a quarter of the peak in 2007. Despite weak flows of FDI from Europe, inflows to North America recovered to $250 billion, rendering Canada and the US the largest recipients among developed countries in 2013. The recovery was primarily due to large inflows from Japan to the United States. In contrast, outflows from North America shed another 10% to $381 billion. The United States was not the only recipient country that saw a large increase in Japanese FDI, which grew for the fourth successive year, rising to $136 billion. Market-seeking FDI in South-East Asia also helped Japan consolidate its position as the second largest direct investor country. Inflows to Australia and New Zealand together declined by 12% to $51 billion. UNCTAD also says that Asia is the main destination for FDI at a global level, receiving almost 30% of global FDI. Total FDI flows to developing countries in Asia (excluding western Asian countries) rose to $382 billion in 2013, 4% more than in 2012. In East Asia, FTI inflows increased by 3% to reach a level of $221 billion. With $124 billion received, China is again in second place in the world and is closing the gap with the US, the biggest beneficiary of FDI in the world. FDI outflows in China also increased by 15% to $101 billion. Progress was slower in Southeast Asia, with an increase of 7% in FDI inflows ($125 billion). In South Asia, inflows increased by 10%, to $36 billion. (IL)