West Loses Appeal for FDI: Wall Street Journal

Populist rhetoric, heightened security reviews and global tensions contribute to reduced foreign investment in the West, report Tom Fairless and Paul Hannon for the Wall Street Journal. Foreign investment in the United States fell by 9 percent and 30 percent in Germany. The writers point out that FDI data is volatile, easily distorted by a small number of large transactions. Still, UN statistics show that security concerns blocked $150 billion in cross-border investments. Labor costs and regulations also influence FDI decisions. To maintain economic growth, central banks in the United States and Europe may pull back from lifting interest rates and encourage credit. Meanwhile, FDI is on the rise in Vietnam, Thailand, Bangladesh, India, Singapore and Indonesia, assisted by the US-China trade war. Investments in the emerging economies may not last though, because the trade war could end at any time or the United States could target other nations besides China with tariffs. – YaleGlobal

West Loses Appeal for FDI: Wall Street Journal

Amid trade tensions and growth concerns, foreign investment fell 9 percent in the US and 30 percent in Germany in 2018
Tom Fairless and Paul Hannon
Tuesday, July 23, 2019

Read the article from the Wall Street Journal about global foreign direct investment. 

Tom Fairless writes about the European Central Bank from the Wall Street Journal’s Frankfurt office. His coverage areas include monetary policy, the European economy and the ECB’s new role overseeing the region’s banks. Paul Hannon is a reporter for the Wall Street Journal.

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