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Fourth in world for direct investment
The United States led the list with a total of $281 billion, Germany was second with $176 billion, the UK third with 130 billion, and Belgium-Luxembourg combined were fourth with $87 billion. The total flow of FDI was 18% up on the previous year.
The FDI Index, showing the relative success of a country in attracting FDI placed Belgium first of 137 countries in the 1998-2000 period, while the Transnationality Index, measuring how important FDI is to a country’s economy placed Belgium first equal with New Zealand.
The UNCTAD report warned, however, that FDI flows worldwide were likely to fall by 40% in 2001. This would represent the first drop since 1991 and the largest over the past three decades. The projected drop is due to a recent decline in cross-border mergers and acquisitions, which account for the bulk of FDI.