More on FDI

Source: The Economist, February 13-18, 2010

"The flow of foreign direct investment (FDI) fell by 39% in 2009 to just over $1 trillion, from a shade under $1.7 trillion in 2008, according to the UN Conference on Trade and Development. All kinds of investment—equity capital, reinvested earnings, and intra-company loans—were affected by the downturn. Rich countries saw FDI inflows plunge by 41%, and foreign investment into developing countries fell by more than a third."

FDI also dropped from 2007 to 2008 exacerbating the impact of the drop between 2008 and 2009. Of course it is no news that there is a global financial crisis, but the quantification of the extent of that crisis is important.