High corporate profits, low interest rates and strong economic growth are set to keep foreign direct investment within the OECD strong in the near-term on the heels of a 22 percent jump last year, a report says.
The Paris-based Organisation for Economic Co-operation and Development said inward investment among its 30 members rose to $910 billion last year from $747 billion in 2005 and $491 billion in 2004.
It projected FDI this year could increase by around 20 percent. Growth in FDI within the OECD was driven last year by a small number of very large cross-border mergers and acquisition, the OECD report said with the five biggest totalling nearly $120 billion.
The United States was the largest recipient of FDI, attracting $184 billion from other OECD members. But the organisation said France, Greece, Iceland, Poland, Slovakia, Switzerland and Turkey all recorded their highest-ever FDI inflows.
The United States was the leading investor as well as recipient, spending $249 billion. It was followed by France with $115 billion. The OECD also noted a major increase in FD investors from outside its membership, such as from India and Brazil.
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