FDI figure dropped continually for 4 months
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.
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