Last year, the world's foreign direct investment fell by 21%

In 2008, world foreign direct investment (FDI) declined by at least 21 per cent over the previous year and amounted to 1.4 trillion dollars. This is stated in a preliminary report on world investments, prepared by the United Nations Conference on Trade and Development (UNCTAD). Its authors, according to UN news center, predicted further decline in FDI flows in 2009 due to the inhibition of growth of the economy, tightening credit conditions and a reduction in corporate profits. Many companies have already announced plans to cut production and capital spending, as well as the dismissal of workers, thereby reducing the foreign direct investment. However, the effects of the crisis differently affected the geographical structure of FDI. In 2008, investment flows to industrialized countries declined by 33 percent compared with 2007. However, despite the global economic turmoil, financial crisis and regional conflicts, South-Eastern Europe and CIS retained investment attractiveness. In 2008, foreign direct investment to these countries rose by 6,2 percent. Foreign investors continued to show interest in the BRIC countries - Brazil, Russia, India and China. Foreign direct investment in Russia last year grew by 17.5 percent. Investment in Ukraine declined by a half percent. The report's authors argue that the 2009 decline in the inflow of international capital will affect all countries without exception in the world.