Foreign Direct Investment (fDi)

China has been ranked the most attractive destination for FDI, ahead of both eastern and western Europe, according to a study by Ernst & Young that examined the perceptions of top business leaders.

However, investor perceptions are not reinforced by investment flows, the study found. Although 41% of survey respondents ranked China as the most attractive investment destination, it still draws less than 8% of global FDI inflows, according to data from the United Nations Conference on Trade and Development (Unctad).

Although only 33% of respondents ranked western Europe as their top choice investment location, the region accounted for 37% of global FDI inflows, according to Unctad.

The world is becoming a level playing field when it comes to businesses’ perceptions of crossborder investment options, said Ernst & Young partner Marc Lhermitte. “Businesses are chasing growth through Asian consumers’ spending power, but Europe and the US remain vastly diversified and powerful markets.”


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