FDI figure dropped continually for 4 months
Foreign direct investment (FDI) has dropped down for 4 months continually in January since the economic crisis influenced deeply around the world.
Compared with the amount of overseas direct investment in January 2008, which had risen by 109.78 percent, the Ministry of Commerce said yesterday that the amount of last month in this year dropped 32.6 percent to $7.54billion.
Fewer and fewer new companies open in the international capital city, which can be shown by the figure declining 48.7% to 1496.
Analysts have the word that the recession in the developed economics and multinationals’ unwilling or short of liquidity to invest at this stage brought the problem of the economic crisis, which will last at least a few more months.
Asian economics have also suffered a lot during most of the year, they said.
Since the large quantity of investment in January 2008 and the moderation in inflows during the past few months caused the drop in FDI, said Sherman Chan, an economist with Moody’s Economy.com
You can’t expect that foreign investment could rise because the international economy is not in a good situation and overseas demand is weak, said Su Chang, a macro-economic analyst with China Economic Business Monitor.
Because of the spring festival, which is celebrated in January this year, having a full week of holidays, we cannot compare between January 2009 and 2008, since last year, it was in February.
The prominent drop is caused by financial crisis, the high comparative figure of January 2008 and the long Spring Festival holiday,” MOC spokesman Yao Jian said at a press briefing.
Yao said that the $7.54 billion capital inflow of January is a few less than the quantity of last year’s average monthly $7.7 billion. It seemed that the monthly figure is going to climb up in the last period of this year, compared to last month, because more chances will be given by the country in order to moderate its macro economy. From a long view, we firmly believe that the flow of FDI will be steady,” he said.
The overseas investment started being weak in October, but last year’s overall capital inflow still rose 23.6 percent to $92.4 billion. Among emerging economies for the 13th successive years, the figure made China the largest FDI recipient since it was higher than the 13.6 percent increase for 2007.
From the international point, FDI dropped 21% to $1.4 trillion, says a UN Conference on Trade and Development report.
Are you interested in the business opportunities in China?
China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.
BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.
Please visit http://www.BPOVIA.com/ for details about our service.
Popularity: 2% [?]