Drop in worldwide flows of direct foreign investment in 2009. - Worldwide flows of direct foreign investment (DFI) reached their lowest point in the second half of 2009, before picking up slightly in the first six months of 2010, according to the latest Cnuced annual report on investments in the world. This improvement is set to speed up in the second half of this year, and even more so through 2011 and 2012 (for more details, see EUROPE 10187). Taken region by region, in 2009: 1) Developed countries: the flow to and from the developed countries fell by more than 40% in 2009, to 566 billion dollars and 821 billion dollars respectively, after a similar downturn the previous year. The crisis did not affect all the regions the same as regards incoming DFI. North America was the hardest hit. Incoming DFI in the United States, top of the world rankings for incoming DFI, fell by 60% (325 billion dollars en 2009 to 130 billion in 2008). In Canada, it fell by more than half to 19 billion dollars in 2009, and in Japan, figures dropped 51% to 12 billion. The 27 member states of the European Union weathered the storm better, with -33% (362 billion dollars). Although incoming DFI fell in certain major host countries, such as the United Kingdom, Belgium and Spain, it rose in others, such as Germany, Ireland and the Netherlands. The outgoing DFI of the developed countries fell overall by 43%; 2) Transition countries of South East Europe and the Community of Independent States: flows into these countries are expected to pick up slightly in 2010. In 2009, incoming DFI fell by 43% to 70 billion dollars. Foreign investment fell by nearly half in the number one economy of the region, the Russian Federation (38.7 billion in 2009 as against 75.4 in 2008), whilst the number two economy of the region, Ukraine, saw its incoming DFI fall by more than half in 2009 (4.8 billion, down from 10.9 in 2008). In Kazakhstan, the downturn was less dramatic, as the country remains attractive for projects concerning hydrocarbons (12.6 billion incoming DFI in 2009 compared to 15.8 in 2008). These three countries were the top three DFI host countries in 2009. The 19% drop in outgoing DFI from the region, to 51 billion dollars, was smaller than the drop in incoming DFI. 3) Asia: DFI in South, East and South-East Asia suffered the least from the crisis and was the first region of the world to start to move forward from mid-2009, fuelled by investments in China and India. This part of Asia is now in fifth place for global incoming DFI, its figures having fallen by just 17% in 2009, to 233 billion dollars. The main destination countries are China (95 billion dollars from 108 billion in 2008), Hong Kong, China (48 billion from 60 billion) and India (35 billion instead of 40 billion), putting them respectively in second, fourth and ninth place in the world for incoming DFI. The outgoing foreign investments of the region dropped by just 8% to 153 billion dollars. In Western Asia, incoming DFI fell in all destination countries of the region (-24%), with the exception of Qatar (up 112%) and Lebanon (+11%), mainly in the liquid natural gas and real estate sectors, respectively. The United Arab Emirates and Turkey were the worst-hit countries, with drops of 71% and 58% respectively. Saudi Arabia remained the region's principal destination country for DFI, with a total of 36 billion dollars. Outgoing DFI, however, fell 39% in 2009, to reach 23 billion dollars. 4) Latin America and the Caribbean: flows of DFI from this region stood at 12 billion dollars in 2009 (with the exclusion of the offshore financial centres). Incoming DFI fell to 117 billion dollars last year, a drop of 36% compared to 2008. Brazil was the most affected, with a decrease of 42%, but it remained the number one destination country, with 26 billion dollars. Outgoing DFI dropped 42% to 47 billion dollars, mainly due to the negative flows from Brazil (- 10 billion dollars). 5) Africa: flows into the African continent fell by 19% in 2009 to 59 billion dollars. Levels of downturn varied between the sub-regions. West Africa and East Africa saw relatively large drops in incoming DFI. Flows into North Africa also fell, as they did in Southern Africa, although the latter remained the number one beneficiary sub-region. Of the individual countries, Angola remained the top destination country, receiving 13 billion dollars in 2009 (compared to 17 billion in 2008), followed by Egypt (9 billion) and Nigeria (7 billion). Outgoing DFI dropped from 9.9 billion to 5 billion in 2009 in all regions, except Southern Africa. (I.L./transl.fl)