Fdi from OECD countries up 50% on 2006. - Foreign direct investment (fdi) from OECD countries rose by an unprecedented amount in 2007 to a total of $1.82 trillion, up from $1.2 trillion in 2006, but is expected to fall to $1.14 trillion in 2008 if the slowdown in mergers and acquisitions witnessed in the first half of 2008 continues, according to recent estimates from the OECD. Inward fdi investment in OECD countries rose from $1.05 trillion in 2006 to $1.37 trillion in 2007, slightly up on the previous record ($1.29 trillion in 2000 - but the dollar was worth more then). It is expected to fall in 2008 to $1.035 trillion. The announced fall in outward fdi from OECD countries in 2008 will impact on developing countries. Analysts have studied past correlations between inward fdi in developing countries and rises in outward fdi from OECD countries and forecast that the forecast 37% cut in outward fdi from OECD countries in 2008 could result in a fall of around 40% in inward fdi to developing countries, which would reduce the total from the record $471 billion in 2007 to only $276 billion. The OECD points out that: 1) the United States remained both the lead OECD investor and the prime fdi destination in 2007 with $333 billion in outward fdi and $238 billion in inward fdi; 2) the United Kingdom comes second with $230 billion of inward fdi and $186 billion of outward fdi in 2007, followed by France with $225 billion of outward fdi and $158 billion of inward fdi; 3) inward fdi in Spain shot up by nearly 80% in 2007, mainly due to massive Italian investment in the electricity industry; 4) fdi in Japan grew exceptionally in 2008 to $22.5 billion due mainly to large-scale investment in the financial industry and capital injections into subsidiaries of foreign companies investing in real estate in Japan ; 5) fdi flows to developing countries rose to a record USD 471 billion in 2007, up nearly 30% on the previous record of $368 billion in 2006. Brazil, Russia (sic), India, China and South Africa soak up between 50% and 60% of fdi flows to developing countries.