The United Nations Conference on Trade and Development (UNCTD) has published its annual “World Investment Report” for 2005. According to this report, Direct Investment from Abroad (DIA) increased by 29% to reach $916bn, following an increase of 27% in 2004, a trend which has affected all the world's regions. DIA inflows have been considerable in all the main sub-regions. In developed countries, this stands at $542bn, a 37% increase compared to 2004. The United Kingdom has seen its DIA increase massively from 108bn to a total of $165bn, which makes it the main DIA destination for 2005. Despite a drop in DIA entry volume, the USA has become the second largest DIA recipient with $99bn. In developing countries, DIA inflows reached the highest level ever registered with $334bn. The list of main recipients remained stable compared to previous years, China and Hong Kong at the head, followed by Singapore, Mexico and Brazil. Regionally, most DIA inflows were concentrated in Europe with $434bn out of 422 for the European Union alone, which received almost half the world total. Southern Asia, Eastern Asia and South Eastern Asia received $165bn, a fifth of the world total, the sub-region of Eastern Asia accounts for approximately three quarters of the regional share. North America comes next with $133bn, followed by South America and Central America with $65bn. Western Asia has displayed the highest level of growth in DIA inflows (85%), with $34bn. Africa received $31bn, a record figure for the region (it received 17.2bn in 2004. DIA outflows stood at $779bn with developed countries remaining the main source. The Netherlands is a leader in this respect with outflows of $119bn, ahead of France and the United Kingdom. Important rises were, however, registered in investment made abroad by developing countries. In first place: Hong Kong with $33bn. In a UNCTD overview we learn that an increasing amount of DIA comes from developing countries and transition economies. Up until the 1980s, outflows from these counties were negligible or minimal but last year totalled $133bn, 17% of the world's total. - Factors driving DIB: international mergers and acquisitions, notably those from developed countries, which have stimulated recent rises in DIA. The value of these operations increased by 88% compared to 2004 and was worth $716bn. They grew in number too, reaching the figure of 6134. - Sectors affected: once again, the services sector is the main beneficiary from the increase in DIA, particularly finance, telecommunications and real estate. What is new, is the clear fall in the manufacturing sector's share, as well as the leap of DIA in the primary sector. Sales through mergers and acquisitions have increased six-fold, mainly in the oil industry. For further information: http: //http://www.unctad.org/wir