2014 fall in foreign direct investment (UNCTAD). - According to initial UNCTAD estimates that appeared in the Global Investment Trends Monitor series (No. 18, 29 January 2015), in 2014, global foreign direct investment (FDI) inflows declined by 8% to an estimated US$1.26 trillion due to fragility of the global economy, policy uncertainty and geopolitical risks. A large divestment in the United States also lowered the global level of FDI flows. Global FDI flows reached US$1.36 trillion in 2013. With inflows to China at an estimated US$128 billion - the country became the largest FDI recipient in the world in 2014, ahead of Hong Kong ($US 111 billion) the US (US$ 86 billion). Singapore is in fourth place with US$81 billion and Brazil, in fifth, with US$62 billion. UNCTAD points out that four out of the five main countries receiving FDI are developing countries. Developed countries: Preliminary estimates show that FDI flows to developed countries as a whole dropped by 14% to an estimated US$511 billion. FDI flows to the United States fell to an estimated US$86 billion - almost a third of their 2013 level. FDI flows to the European Union (EU), however, reached an estimated US$267 billion; this represents a 13% increase on 2013. The United Kingdom was the main beneficiary and saw its inflows rise to an estimated US$61 billion. FDI flows to Sweden and Portugal also rose significantly, though from very low levels in 2013. Inflows to the Netherlands and Luxembourg increased to US$42 billion and US$36 billion, respectively. In contrast, inflows to Germany and France were in negative territory, to -US$2.1 billion and to -US$6.9 billion, respectively. Japan, while still a small host country, continued to perform well, with FDI inflows rising to US$10 billion in 2014. Inflows to Canada declined by 26% to US$53 billion. Developing countries: Developing economies saw their FDI reaching a new high of more than US$700 billion last year, the highest level ever recorded and they now have a global share of 56%. Despite a slowdown in growth, Asia has been the highest performer (US$492 billion as opposed to US$427 billion in 2013), although FDI has fallen in Latin America (US$153 billion as opposed to US$190 billion in 2013). Among the subregions, East Asia, South-East Asia and South Asia experienced rapid increases in inflows, while those to West Asia dropped (-4%). Inflows to China amounted to an estimated US$128 billion, rising by about 3% from 2013. FDI inflows to India surged, increasing by about 26% to an estimated US$35 billion. Flows to Hong Kong (China) rose by an estimated 46% to an annual total of about US$111 billion. Similarly, FDI inflows to Singapore, rose by 27% to an estimated US$81 billion. FDI inflows to Africa fell by 3% to an estimated US$55 billion, largely accounted for by a decrease of FDI into North Africa by 17% to US$12.5 billion, due to the continued civil unrest in Libya. The other subregions maintained a relatively stable FDI flow, while Mozambique was the driving force in the region for FDI flows. FDI flows to Latin America are estimated to have decreased by 19% to US$153 billion in 2014, after four years of consecutive increases. Most of the decline took place in Mexico where inflows are estimated to have fallen 52% - or by US$22 billion - due to the exceptional levels reached in 2013. Flows also fell in Brazil (US$62 billion), Venezuela (US$900 million), Columbia (US$15.8 billion), Peru (US$7.4 billion) and Argentina (US$4.5 billion). In Chile, they increased by US$9 billion. Transition economies experienced a 51% decline in their FDI inflows, reaching an estimated US$45 billion, as regional conflict and sanctions on the Russian Federation - the largest host country in the region - have deterred foreign investors (especially from developed countries). FDI flows to the Russian Federation are estimated to have fallen by 70% to an estimated US$19 billion, due to both the country's negative growth prospects and the exceptional level reached in 2013 (because of the US$55 billion Rosneft-BP transaction). Major oil and gas companies based in developed countries have cancelled or withheld equity investments in the Russian Federation. In Ukraine, FDI flows turned negative to -US$0.2 billion. In contrast, FDI flows to Kazakhstan and Azerbaijan rose. Prospects for 2015 remain uncertain. Persistent fragility in the global economy and sustained instability in certain regions do not allow for much optimism, according to UNCTAD. (IL)