- OECD: Foreign Direct Investment (FDI) in OECD countries continued to fall in 2004, reaching $406 billion compared to 459 billion one year earlier. FDI outflow from the United States hit an all-time record of $252 billion in 2004 compared to 141 billion in 2003. FDI flow toward Germany and France, the two main economies of continental Europe, fell considerably last year. In France, inward investment almost halved, falling from $43 billion to 24 billion. The situation is more problematical still in Germany where inward investment was $27 billion while, in 2004, foreign investors actually withdrew about $39 billion from the country. Belgium now surpasses them with a more honourable score (35 billion in 2004 compared to 32 billion in 2003). The United Kingdom, for its part, becomes the major investment target country in the OECD zone, behind the United States, with $79 billion received in 2004 compared to only 21 billion in 2003. On the other hand, FDI leaving the OECD toward the rest of the world went from $593 billion in 2003 compared to 668 billion in 2004, a large part of the investment being intended for developing countries. China continued to receive a large part of the investment, with $55 billion in 2004 compared to 47 billion in 2003. The OECD still notes that, in South America, Argentina is beginning to “climb out of the trough” with 4 billion in incoming investment in 2004 (compared to 1.9 billion in 2003). Brazil, for its part, has recorded $18 billion and Chile 8 billion which, in both cases, amounts to twice as much as in 2003. India received 5.3 billion in 2004 compared to 4.3 billion in 2003. Finally, incoming FDI in Russia had already increased in 2003 ($8 billion) and was still climbing in 2004 (12 billion). While developing countries continue to be major recipients of FDI, several are gaining importance as outward investors as well. Such is the case of Latin America (Mexico and Brazil) and China, although, on a global scale, their investment is still relatively limited.