First estimates for 2002 according to the preliminary estimates of Unctad (United Nations Conference in Trade and Development), foreign direct investment (FDI) flows fell by 27% in 2002 to $534 bn. Furthermore, for the first time, China is said to have overtaken the United States as the world's largest recipient of foreign investments. As in 2001 already, developed countries are the first to have suffered from the recession with a drop of 31% of FDIs, whereas in developing countries FDIs fell by 23%, against only -1% for the Ceecs (Central and Eastern European countries). The uncertain economic situation and weak stock market are undermining business confidence, with a sharp impact on cross-border mergers and acquisitions and corporate expansion plans, Unctad points out. The latter considers that, overall, more than half the 85 economies for which data are available can be expected to receive lower FDI flows in 2002 than in 2001. The survey stipulates that: - a) between January and September 2002, mergers and acquisitions fell by 45% to $250 bn compared to the 450 bn for the same period 2001. The United States, foremost recipient of FDIs in 2001, was the most affected by this decline to the benefit of China which took top spot; b) some Ceecs were less affected by these poor results: several transnational companies continued to invest in these countries which propose advantageous financial conditions for setting up their businesses, compared to other locations; c) in 25 developed countries, FDI inflows in 2002 could reach $349 bn in 2002, compared to 503 bn in 2001. Other than the United States, the steepest decline in absolute figures was in the United Kingdom (a fall of 66% for the United States - $44 bn against $124 bn in 2001, and 75% for the United Kingdom - $12 bn against 54 bn in 2001); d) the situation in Africa became even more dramatic in 2002 with only $6 bn invested, against 17 bn in 2001; e) FDIs in the developing countries of Asia fell by 12% in 2002 to $90 bn against 102 bn in 2001. From 2000 to 2001, these countries had already seen a fall of 24%. The main cause is more a fall in European and American investments in the region than a fall in economic growth. China comes out top with $50 bn received. India, Malaysia and the Philippines had good results, whereas the slowdown was felt in Hong Kong, the Republic of Korea, Thailand and the Chinese province of Taiwan. f) in the countries of Latin America and the Caribbean, FDIs fell for the third consecutive year, or $62 bn received against $85 bn in 2001 (a fall of 27%). Mexico was particularly affected (FDIs of $14 bn), whereas Brazil experienced a regain of interest ($20 bn) which places it back at the top of FDI recipient countries in the region. The crisis in Argentina, for its part, reduced inflows to a minimum. The last months, however, saw better results than the first ones. g) FDIs remained stable at some $27 bn in the Ceecs, with, more specifically, an increase in FDIs in Albania, Bulgaria, the Czech Republic, Latvia, Lithuania and Slovenia. Falls were, however, recorded in Estonia, Hungary, Moldova, Poland, Slovakia, the former Yugoslav Republic of Macedonia and Ukraine. Figures remained stable in Bosnia-Herzegovina, Croatia, Romania and the Russia Federation.