UNCTAD says global FDI flows continued to rise in 2006 and reached $1,306bn. - UNCTAD has revealed in its annual report on global investment that for the third year in a row, global flows in direct investment (FDI) continued to increase in 2006. These flows were worth $1306bn, a 38% rise on the 2005 level, and were close to the record level of $1411bn reached in 2000. Although FDI inflows in developed countries grew by 45% to reach a level of $857bn, flows to developing countries and the transition economies of South East Europe and the Commonwealth of Independent States (CIS) reached a record level: $379bn (+21%) and $69bn (+68%) respectively. The United States regained its position as the leading host country, followed by the United Kingdom (which loses its ranking in first place) and France. The largest inflows among developing economies went to China, Hong Kong and Singapore, while the Russian Federation is the main FDI destination for transition economies. In regional terms, FDI increased in most developed countries. Flows to the US grew markedly and reached a level of $175bn. Canada reached a record of $69bn. In 25 member states of the European Union, FDI inflows increased by 9% to $531bn. The fall in flows to Ireland, Spain and the United Kingdom was more than made up by a reverse trend in Belgium, Italy and Luxembourg, while FDI flows in 10 new member states rose to $39bn. Due to the significant sell-offs of foreign subsidiaries to Japanese companies, FDI inflows to Japan turned negative for the first time since 1989 ($-6.5 bn). FDI outflows from developed countries also grew by 45% to reach $1000bn. The US and five member states of the EU are among the ten biggest external global investors. France is the second biggest investor with $115 bn, while Spain continued its expansion with $90 bn. FDI inflows into Africa reached $36bn in 2006, double the 2004 rate. Despite this rise, Africa's share of FDI in the world fell to 2.7% as opposed to the 2005 rate of 3.1%. FDI inflows increased in 33 African countries and throughout the African subregions, excluding Southern Africa. The 10 biggest host countries received around 90% of these inflows, that is $32bn (Egypt, Nigeria, Sudan, Tunisia, Morocco, Algeria, Libyan Arab Jamahiriya, Equatorial Guinea, Chad and Ghana). FDI outflows from African countries also reached a record level of $8bn in 2006 as opposed to $2bn in 2005. In Southern, Eastern and South East Asia, FDI inflows increased by 19% and reached a record $200bn. China and Hong Kong were the main destinations in the region, followed by Singapore and India. FDI outflows increased by 60% to reach $103bn, $43bn of which came from Hong Kong. In Western Asia, 14 countries in the region experienced an increase of 44% and reached a record $60 bn. FDI from the region increased by 5% to reach new heights of $14bn. Australasia accounted for FDI inflows of $339 million, a fall of 11%. Flows to Latin America and the Caribbean increased by 11% to reach $84bn. FDI outflows increased by 125%, to fix at $43bn. Brazil and Mexico remained the main destination for FDI, each of them accounting for $19bn, followed by Chile, the British Virgin Islands and Colombia. Brazil is also the biggest investor country in the region ($28 bn). FDI inflows into South East Europe and from the CIS increased by 68%, reaching $69bn. The five biggest host countries were in descending order: the Russian Federation, Romania, Kazakhstan, Ukraine and Bulgaria, with 82% of FDI received. FDI outflows from countries in the region increased for the fifth consecutive year to reach $18.7bn in 2006. (UNCTAD: World Investment Report 2007). (il)