The United Nations Conference on Trade and Development (UNCTAD) has released its 2010 World Investment Report. Themed ‘Investing in a Low-Carbon Economy’, the report examines global investment trends over the last year and provides further comparative analysis of investment flows over the last 3 years.
According to this year’s report, the prognosis for a recovery in global investment is good. The first half of 2010 has already seen a slow rise in inflows of foreign direct investment (FDI), with flows expected to reach US$1.2 trillion by year-end. FDI flows are expected to continue to rise through to 2012, moving to US$1.3 – 1.5 trillion in 2011 and to between US$1.6 – 2 trillion in 2012. This is welcome news to the market as investors seek to make forays into the market once again.
Barbados is considered one of several developing and transitioning economies and UNCTAD has issued a favourable prognosis for this category of economies. It is forecast that the bulk of forthcoming investments will flow to this grouping as firms continue to internationalise in 2010.
In this year’s report, the UN body has made recommendations to Small Island Developing States (SIDS) seeking to attract FDI including the need to create niches. Barbados remains ahead in implementing measures for creating an excellent environment for investment including the creation of niche markets. Barbados has long forged its place in the world of financial services as a centre of excellence, becoming world renowned for its offerings. This area, along with the wider services sector, continues to attract investment worldwide as is evidenced by the low decline in FDI flows relative to manufacturing during the economic crisis.
Barbados ranked as the 5th highest recipient of FDI among SIDS worldwide in 2009 attracting an estimated US$290 million, an increase of 1.4% over its 2008 figure. With its range of tax efficient vehicles and wide network of tax treaties, Barbados remains a sound choice for investment in 2010 and beyond.T