Outward foreign investment increased in 2011 (UNCTAD). According to initial United Nations Conference on Trade and Development (UNCTAD) estimates, global foreign direct investment (FDI) outflows rose by 16 per cent in 2011 to an estimated US$1.66 trillion, surpassing the pre-crisis levels of 2007. In 2010, outflows amounted to US$1.429 billion. Growth was due in large part to cross-border mergers and acquisitions and to increased amounts of cash reserves kept in foreign affiliates, rather than in direct investment in new productive assets. Outward FDI from developed countries rose by 25 per cent in 2011, exceeding US$1.23 trillion, with the European Union (EU), North America, and Japan all contributing to the growth. In the EU, it was mainly Italy and the United Kingdom that were responsible for this growth. The former effectively doubled its investments in 2011 and the latter tripled its investment. FDI outflows from developing countries fell by 7 per cent, mainly due to significant declines in outward FDI from Latin America and the Caribbean and a slow-down in growth of investment from developing Asia. As a result, the share of developing and transition economies in global FDI outflows declined from 31 per cent in 2010 to 26 per cent in 2011. Nevertheless, outward FDI from developing and transition economies remained important, reaching the second highest level ever recorded. Prospects for FDI outflows in 2012 continue to improve since the depth of the crisis, but they remain guarded due to the fragility of the global economic recovery, explained experts. (IL/transl.fl)