China Tops Foreign Investor Confidence
December 27, 2010 Leave a comment
Despite the worries of foreign investors about Indigenous Innovation and related industrial policies, China continues to top the list of destinations where foreign investors feel more confident according to the AT Kearney “FDI Confidence Index.” China has held the title since 2002. India and Brazil are not far behind China, showing that growth markets breed confidence even if investors face limitations and less than transparent investment rules and regulations. The US has moved up this year, perhaps signifying that the world’s investment funds and multinationals expect the US recovery to gain momentum.
Investing in a Rebound – The 2010 A.T. Kearney FDI Confidence Index®
FDI flows will remain disappointing through 2011, according to the 2010 A.T. Kearney Foreign Direct Investment Confidence Index, a regular assessment of senior executive sentiment at the world’s largest companies. The Index also found executives are wary of making investments in the current economic climate and revealed that they expect the economic turnaround to happen no earlier than 2011. Half of the companies surveyed also report that they are postponing investments as a result of market uncertainty and difficulties in obtaining credit.
China remains the top-ranked destination by foreign investors, a title it has held since 2002. The United States retakes second place from India, which had surpassed it in 2005. India, Brazil and Germany complete the top five favored investment destinations.
Overall, developed economies rose in the Index as investors looked for safety. The most striking exception is the United Kingdom, whose reliance on financial services left it exposed in the current crisis. At the same time, the placement of China, India and Brazil in the top five shows a strong vote of confidence for the strength of these economies. Investors also expressed the most optimism about the future outlook for China, India and Brazil.
Link to full report: