Foreign investment still down in developed countries in 2014. - Foreign direct investment (FDI) inflows to developed countries lost ground for the third year running, falling by 28 per cent to $499 billion - their lowest level since 2004 - UNCTAD's World Investment Report 2015 says. Meanwhile, FDI outflows from developed economies held steady at $823 billion. Foreign direct investment to 'transition economies' (South Eastern Europe) more than halved in 2014, UN Report says: 1) Developed countries. - Europe. FDI flows into Europe fell by 11 per cent to $289 billion, continuing a downward trend that has persisted since 2012. Inflows to 18 European economies fell in 2014, including to such recipients as Belgium, France and Ireland that had attracted large investment in 2013. In contrast, some of the European countries that made the largest gains in 2014 were those that had received negative inflows in 2013, such as Finland and Switzerland. FDI to the United Kingdom jumped to $72 billion in 2014, thus retaining its position as the largest recipient country of foreign direct investment in Europe. Outflows from European countries were virtually unchanged at $316 billion. Germany almost tripled its outflows, becoming the largest direct investor country in Europe in 2014. France also increased its outflows sharply to $43 billion. In contrast, FDI from other major investor countries in Europe plummeted; FDI from the Netherlands (the European country that invested the most in 2013) lost 28 per cent, and flows from Luxembourg (which invested the second largest amount in 2013) became negative. Divestment and withdrawal of funds from overseas by United Kingdom multinational enterprises continued to exceed the value of new investment, leaving net outflows to fall further to -$60 billion. - North America. Inflows to North America halved to $146 billon, falling in both Canada and the United States. North America's global share was reduced to 12 per cent (compared to 21 per cent in 2013). Despite the decline, the United States remained the largest recipient of FDI flows among developed economies. Outflows from Canada and the United States, which had already been on an upward trend in 2013, extended their gains reaching $390 billion, although they were still at a level well below those seen in 2011. - Asia-Pacific. FDI flows into Australia and Japan contracted, while those to New Zealand rebounded. Outflows from Japan declined by 16 per cent ending a three-year run of expansion. 2) Transition economies. - In South-East Europe, Community of Independent States and Georgia (which make up the transition economies), FDI flows fell by more than half to $48 billion in 2014. Geopolitical risk and regional conflict weighed heavily on FDI flows into the transition economies of the CIS. The Russian Federation - the country that receives the most FDI in the region - saw its flows fall by 70 per cent to $21 billion. FDI flows to Kazakhstan fell by 6 per cent in 2014 while flows to Azerbaijan almost doubled to $4.4 billion. In South-East Europe FDI flows remained flat at $4.7 billion. Serbia and Albania, both candidates for accession to the EU, remained the largest recipients of FDI flows in the sub-region at $2 billion and $1 billion, respectively. In 2014, China became the fifth largest FDI investor in Russia, up 13 positions since 2007. FDI outflows from transition economies fell by 31 per cent to $63 billion. Sanctions against Russia, coupled with a weak economy and other factors, began to affect both inward and outward FDI in the second half of 2014. (Isabelle Lamberty)